What Is Entrepreneurship? Definition, Meaning, and Tips (2024)

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While the definition of entrepreneurship has stayed constant for decades, the possibilities for aspiring entrepreneurs have come a long way.

Think about it: 100 years ago, what options did an entrepreneur have? If you weren’t skilled enough to make something or didn’t have the capital to buy wholesale products to resell, you were out of luck.

Fast forward to 2024—there are now 582 million entrepreneurs in the world. There’s a simple reason behind this growth in entrepreneurship: the opportunities have exploded.

Today, we’ll take a closer look at what it means to be an entrepreneur. You’ll also get insights from successful entrepreneurs on how they launched their businesses, along with tips to help you start your own.

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What is entrepreneurship?

Entrepreneurship is the practice of launching, running, and growing a business venture. It requires a combination of innovation, skills, and clear vision to create products, services, or ideas that meet market demands and offer value to a target audience. Those who choose this path are ready to face the risks that come with starting a new business.

Entrepreneurs work hard to make their ventures successful, whether it’s a small business or a larger company. This effort boosts economic development and creates new job opportunities. Additionally, entrepreneurs contribute to society by solving problems and meeting the needs of the people around them.

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What is an entrepreneur?

An entrepreneur is someone who pursues a new business venture, often embracing the risks and challenges that come with it. However, this definition barely scratches the surface of what it means to be an entrepreneur.

Entrepreneurs embody passion, grit, and a desire to bring ideas to life. They want to solve real-world problems and improve lives through their endeavors. Being an entrepreneur means embracing a journey of innovation, resilience, and adaptability.

The term ”entrepreneur” encompasses a wide spectrum of entrepreneurial ventures, from side hustles and product development to freelance work and content creation. Anyone who earns independently through their own initiatives can rightfully be considered an entrepreneur.

What is entrepreneurial mindset?

Entrepreneurial mindset is a way of thinking that empowers people to pursue ideas, overcome challenges, and succeed in a variety of settings. Anyone can adopt this mindset, regardless of their inherent knowledge and strengths. Continuous learning and personal growth are key to developing and nurturing your entrepreneurial spirit.

Types of entrepreneurs

Entrepreneurs can be categorized by their motivations, personality type, or nature of business. Here’s a look at the different paths you can take as an aspiring entrepreneur to forge your own success:

Side hustler entrepreneurs

Side-hustler entrepreneurs start their own businesses on the side while keeping their day jobs. They might be chasing a passion, looking to earn some extra cash, or just trying out a business idea before diving in full-time. Plenty of them have turned these side gigs into their main business.

Creator entrepreneurs

“Creator” is a term used to describe influencers, social media personalities, and online media personalities who earn money via self-employment. They have multiple streams of income, including sponsorships, merchandise sales, and subscriber-only content.

Maker entrepreneurs

Maker entrepreneurs are the crafty individuals who turn their hobbies into a business. They are the ones behind the handmade goods you love and the online courses teaching different DIY techniques.

Innovator entrepreneurs

Innovators are entrepreneurs coming up with fresh ideas, services, or products, or making existing ones better. These ideas can turn into new companies or patents, or could be sold off to other businesses.

Small business owner entrepreneurs

These are the people you usually think of when someone says “entrepreneur.” They might be going it alone or managing a small team while running all sorts of businesses, from a bespoke SEO agency to an online dropshipping store.

Consultant entrepreneurs

Consultant entrepreneurs are experts in their field who choose to work independently. They make their living by offering advice to companies and people on areas they know best, like decorating homes or smart investing.

What are the characteristics of successful entrepreneurs?

Certain traits are common among successful entrepreneurs, but no two are the same. Each has their own unique strengths that play a major role in how they manage and envision their business.

Top entrepreneur traits include:

Discipline

Discipline means sticking to a plan. Entrepreneurs with this trait focus hard every day. They set goals, follow plans, and work tirelessly toward their objectives.

Passion

Passionate entrepreneurs are guided by their strong love for what they do. This intense enthusiasm is like a powerful engine that keeps them going. It motivates them to overcome challenges and turn their dreams into reality.

Vision

Entrepreneurs with vision look beyond the horizon. They imagine what’s not yet seen, crafting a future that’s both ambitious and inspiring. This foresight also guides their business decisions and draws others to their cause.

Self-reliance

Being able to count on yourself is huge. Entrepreneurs who stand strong on their own make decisions confidently, steer through tough times, and keep pushing forward, no matter the circumstances.

Risk tolerance

Being OK with taking chances is risk tolerance. Entrepreneurs ready to take risks often find new paths. They’re not afraid to try, even if it means failing at first.

Pros and cons of entrepreneurship

When considering entrepreneurship, it’s crucial to weigh the pros and cons. This step helps you grasp the risks and rewards involved. By doing so, you can make an informed decision about whether this path is right for you.

Pros of entrepreneurship

Work flexibility: When you run a small business, you can set your own hours. Work wherever and whenever suits you best.
Be your own boss: You’re in control. Make decisions quickly without needing someone else’s approval.
Unleash creativity: Without big company bureaucracy, you can solve problems in creative ways and try out new ideas often.
Make money from passion: Turn what you love into your career. No need to wait until after work to do what you enjoy.
Unlimited earning potential: Your income isn’t capped. The more your business grows, the more you can earn.

Cons of entrepreneurship

Financial risk: Putting your money into your business is a gamble. If your idea doesn’t take off, you’re the one who has to deal with the fallout with investors and lenders.
Long hours: Starting a business means there’s always more work to do. You’ll often find yourself working late and tackling various tasks at once.
More responsibility: Being in charge means all decisions—and their impacts—rest on your shoulders, which can be quite stressful.
Stiff competition: No matter the field, you’ll be up against established businesses and other entrepreneurs eager to make their mark.
No steady income: While there’s a chance for big earnings, they won’t come quickly. Expect to reinvest a lot into the business and face some tight financial times early.

Understanding these challenges is crucial for anyone thinking about starting their own business. Every successful entrepreneur has faced hurdles. If you’re aiming to bring an innovative idea to life through entrepreneurship, knowing what lies ahead is key to preparing for success.

Why do people become entrepreneurs?

Every entrepreneur has their own “why” that drove them into being their own boss. Whether entrepreneurs need more freedom or to make an impact, they all take control of their lives by living on their own terms.

Here are a few of the reasons why people become entrepreneurs:

Build your skills

Starting a business usually means you’re the jack-of-all-trades, handling marketing, product making, customer support, and even website tweaking. Those early days are like a crash course in business 101. What you learn not only helps you then but sticks with you, ready to be used wherever you go.

Earn a sustainable income

Starting a business doesn’t always go smoothly at first, but keep at it, and you might just create a steady money stream for years to come. This hits home for folks gradually setting up their own thing while moving away from a 9-to-5 job.

Mixing up where your money comes from is a big deal in the FIRE movement—which is about smart saving and investing to become financially independent. A lot of entrepreneurs are in it for the chance to clock out early or the freedom of earning as much as they can on their own terms.

Achieve work flexibility

The flexibility to choose your working hours is a significant advantage of starting your own business. You could be up working at 4 a.m., take your dog out when the sun’s up, or work whenever you feel most switched on. Entrepreneurship allows you to shape your business to fit the life you dream of, not the other way around.

💡 Tip: If you love traveling, think about a seasonal business that gives you the freedom to explore for months at a time. If family time is your priority, schedule your work around your kids’ activities and vacations.

Boost community engagement

Start your business and watch how you can help your community thrive. Every $100 spent at a local small business puts $63 back into your local economy, way more than the $14 that stays when you shop at big chains. Across the US, entrepreneurs are responsible for creating more than 1.1 million jobs in their local areas. Your business success can inspire and facilitate success for others too.

Entrepreneurs historically have been catalysts for change. They challenge the status quo, introduce innovative solutions, and inspire shifts in how industries operate. By engaging in social entrepreneurship, you can pursue your passion for a cause and make a broad impact.

Define your own success

A successful business doesn’t mean only making a lot of money. As an entrepreneur, you decide your goals and what success means. Success might be about your brand getting noticed, grabbing more market share, building a loyal customer base, or being able to help out a charity you care about.

How do you become an entrepreneur?

Let’s take a look at the top tips shared by startup entrepreneurs, and how you can use these tips to become successful.

If you’re drawn to starting a new business, bringing an innovative idea to fruition, or aiming for financial freedom, congrats on making the first move! That entrepreneurial spirit of yours is gearing up, and you’re on the brink of embarking on the entrepreneur’s journey.

Prerequisites for becoming an entrepreneur

To kick things off, there are a few crucial things you’ll need—and the rest you’ll pick up along the way.

A solid idea: First off, you need an idea. It’s important to ensure your idea is viable by conducting thorough market research.
Passion: The road to entrepreneurial success is filled with highs and lows. Believing in your idea and vision is key to overcoming any obstacles you encounter.
Start-up capital: Depending on your business concept, you might manage to start small from your home with minimal initial costs. If not, figure out the amount required to launch your business properly.
A learning mindset: Remember, many successful entrepreneurs didn’t start with business degrees. What you really need is a willingness to learn from your experiences and persist through failures.

First steps to kickstarting your business

Craft a business plan: Jumpstart your venture by drafting a business plan. Using a template can guide you through assessing your idea’s potential, figuring out funding, and planning how to reach your audience.
Refine your idea and business model: Once your idea and business model are clear, and you know who your market is, it’s time to look for funding. While some dip into savings to launch side businesses, others explore options like venture capital, crowdfunding, small business loans, or investor funding.
Set up the logistics: Depending on your business model, you might need to stock up on inventory, find a space to rent, hire a team, or organize how you’ll send products to customers. The exact steps vary for every entrepreneur.
Build your brand and online presence: With your brand strategy in place and your website up and running, you’re all set to introduce your business to the globe and start attracting customers.

Embracing these fundamentals sets the stage for your entrepreneurial journey, paving the way toward achieving the success that many entrepreneurs strive for.

Examples of entrepreneurs

Let’s take a look at some examples of entrepreneurs.

Walt Disney

Walter Elias Disney became one of the most well-known names in the world. You know him from the Walt Disney Company and theme parks like Disneyland and Walt Disney World. His brand started with Mickey Mouse and eventually expanded to include thousands of characters and whimsical fantasy worlds.

But it wasn’t always smooth sailing. He faced challenges like loads of commercial failures, but he kept pushing through and stayed committed to his vision.

Mark Zuckerberg

Mark Zuckerberg created several products before building Facebook. He created an instant messaging tool that his father used in his dentistry practice to communicate with his receptionist.

Zuckerberg also created music software that Microsoft and AOL were interested in buying, even though he was only a teenager. Within a year of Facebook’s founding, it already had one million users. Today, Zuckerberg has a net worth of $65.7 billion.

Sara Blakely

Sara Blakely first started the Spanx brand in 1998. Her brand specializes in shapewear and includes items like bras, panties, and hosiery.

She’s also the inventor of arm tights, which allow women to wear their summer clothing year-round. At one point, Blakely was the youngest self-made female billionaire.

Entrepreneurship ideas for 2024

As a startup entrepreneur, there are so many ideas you can pursue, depending on the business skills you already have and what you’re willing to learn. Here are a handful of business ideas to get you started:

Ecommerce store owner
Freelancer (write a blog, accountant, designer)
Teaching (online courses, author)
App creator (chatbots, social media apps)
Service-based business (food delivery, cleaning, dog walking)
Consultant-based business (wedding planner, life coach)
Apartment rentals (Airbnb)
Marketing businesses (influencer marketing, SEO brands, PR firms)
Affiliate marketing (Amazon Affiliate, Clickbank, etc.)
Blogger (Product reviews, niche blog, magazine)
Vlogger (start a YouTube channel, Twitch)
Flipper (domain name, website, house)
Translator
Gig economy (driver, Fiverr)
Real estate agent (condos, houses, commercial)
Photographer (product photography, sell photos)
Stock Broker (buying and selling stocks)
Tutor
Website flipper
Reseller business

How real entrepreneurs define entrepreneurship

Let’s take a look at what real entrepreneurs have to say about the meaning of entrepreneurship, and what it means to them on a personal level.

Founder and CEO of NeuroFlow Christopher Molaro says, “Entrepreneurship means being the one who is willing to take a leap and work hard enough to sacrifice everything else around them, all in the name of solving problems, because no one else is capable or possesses the desire.”

The meaning of entrepreneurship is slightly different for Jolijt Tamanaha, VP of growth at Fresh Prints, who shares, “Entrepreneurs make their way down a never-ending list of problems with grit, passion, and energy. While intense, being an entrepreneur means you get to live life learning an incredible amount and maximize your impact on the world because you have to tackle the hardest problems.”

According to James Sandoval, founder, and CEO of Measure Match, “Being an entrepreneur means diving headlong into a [likely very risky] venture of your own making, working hard, long hours, often alone, to carve out a path to success and never, ever giving up.”

Entrepreneurship quotes for inspiration

Need some inspiration? Here are some popular entrepreneur quotes to keep you lit up and ready to go.

“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” —Peter Drucker

“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” —Niccolo Machiavelli

“From my very first day as an entrepreneur, I’ve felt the only mission worth pursuing in business is to make people’s lives better.” —Richard Branson

“A person who sees a problem is a human being; a person who finds a solution is visionary; and the person who goes out and does something about it is an entrepreneur.” —Naveen Jain

“An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.” —Reid Hoffman

“The number one reason why people fail in life is because they listen to their friends, family, and neighbors.” —Napoleon Hill

“It’s not about ideas. It’s about making ideas happen.” —Scott Belsky

“There’s lots of bad reasons to start a company. But there’s only one good, legitimate reason, and I think you know what it is: it’s to change the world.” —Phil Libin

“Being an entrepreneur is a mindset. You have to see things as opportunities all the time. I like to do interviews. I like to push people on certain topics. I like to dig into the stories where there’s not necessarily a right or wrong answer.” —Soledad O’Brien

For more quotes about entrepreneurship, check out our post of best motivational quotes for entrepreneurs.

The future of entrepreneurship

In recent years, a lot of people have turned to entrepreneurship for various reasons. Some were looking for a way to make extra money, while others wanted to pursue a passion or saw a chance to meet new demands in the market. As a result, we’ve seen a significant increase in the number of small businesses.

Technology has played a pivotal role in this entrepreneurial boom. New and emerging technologies like AI are allowing entrepreneurs to make data-driven decisions, automate processes, and personalize customer experiences. This accessibility is empowering entrepreneurs to launch more sophisticated, scalable, and customer-focused businesses than ever before.

Additionally, technology has facilitated the rise of the gig economy and remote work, which has been a blessing for many aspiring entrepreneurs. People can now leverage their skills and talents from anywhere in the world, providing services, creating content, or selling products without the need for a physical storefront.

Overall, the integration of technology into the fabric of entrepreneurship has catalyzed economic growth and spurred the creation of new businesses across various sectors.

Are you ready to be an entrepreneur?

There’s no single right way to be an entrepreneur. These people come in all shapes and sizes and can influence virtually any aspect of life as we know it.

In a sphere with so much diversity, there are a few things that all entrepreneurs have in common: they’re full of passion and ambition, and they use these as a driving force to build empires that solve some of the world’s toughest problems.

If you’re looking to make your mark on the world or advance society—or even break free from the exhausting and inflexible 9-to-5 job—you just might be an entrepreneur in the making.

Trust your gut, follow your instincts, and always keep your mind open to learning and exploring new opportunities that come your way.

What is entrepreneurship FAQ

What is the meaning of entrepreneurship?

The meaning of entrepreneurship involves an entrepreneur who takes action to make a change in the world. Whether startup entrepreneurs solve a problem that many struggle with each day, bring people together in a way no one has before, or build something revolutionary that advances society, they all have one thing in common: action.

It’s not some idea that’s stuck in your head. Entrepreneurs take the idea and execute it. Entrepreneurship is about the execution of ideas.

What are the different types of entrepreneurship?

Small-business entrepreneurship
Hustler entrepreneurship
Creator entrepreneurship
Innovative entrepreneurship
Social entrepreneurship

What is the entrepreneurial mindset?

The entrepreneurial mindset is a person’s attitude to building an independent business. It means having an open mind and questioning everything in the hopes of creating something unique and innovative.