We explain what an entrepreneur is and where this concept comes from. In addition, what are the types of entrepreneurs and what is their role.
The entrepreneur or entrepreneur (from the Latin prehendere , catch) is that person who has strategic control over an economic company , making decisions related to setting production objectives , establishing the most appropriate means to achieve those ends and organizing the administration.
Not every entrepreneur is an entrepreneur , since the former could have inherited or bought a company or be a high-ranking employee charged with running the administration. The notion of an entrepreneur is more associated with the idea of taking a risk, while the entrepreneur is more linked to the decision making process.
The word entrepreneur comes from the French medieval era, where “ entrepeneur ” was designated the individual in charge of using the factors of production (the work of the servants, the materials and resources of the feudal lord or the king) and assuming the risk for construction of buildings or armaments.
The forms of entrepreneurship vary throughout history , as the processes of economic transformation take place. During the initial stages of the industrial era, the entrepreneur was the founder and owner of his company, assuming all the risks of production.
Subsequently, the economic accumulation allowed several entrepreneurs to jointly hold control of a company or that an owner hires an entrepreneur to manage his company . In addition, economic globalization has generated the emergence of international companies managed in many cases by their large shareholders.
It is so called today, more specifically to the person who makes the binding decisions on the production of goods or services in a company for sale in the market and the consequent obtaining of benefits . The entrepreneur can also (but not necessarily) be the owner of the company and the owner of the capital , and in charge of assuming the risks of innovation and investment .
The entrepreneur can consist of both a natural person and a legal subject , and can perform his task both individually and collectively. The concept of entrepreneur is directly linked to that of the company: an entrepreneur acts as a personification of the company, not only for holding its legal representation but for being in many cases its owner and for being common that the company bears his last name.
The activity of an entrepreneur is given both inside and outside the company, understood as an economic unit:
Three classes of entrepreneurs can be distinguished, depending on how they relate to the company’s operations.
Although the adventure of entrepreneurship is very unique and personal depending on the case, most of the time it is said that an entrepreneur must have the following characteristics to succeed:
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