We all know what an entrepreneur is – it is an idea that entered our vocabulary with a lot of different freight. Loosely stated – it is someone that starts a business. Well I disagree with this use. The origin of the word lies in the coupling of the french entre – between or amongst, and prendre – to take. Amongst the interesting usages of prendre is to start (a fire), or to light (a match). The early usage of the word was to describe one who undertakes, typically with a connotation of undertaking a business, or a risk. In fact the word, although often said to originate in the 19th century in France, was known to exist as far back as 1475, when it was first introduced across the channel to England.
Origins 500 Years Ago
This was a time when trade by sea was increasingly a key to wealth and influence – trading rather than immediate empire. One would “undertake” a voyage as an adventure in trade. Implicit in this idea was the notion of risk. Sea voyages are inherently risky – weather, pirates, theft, spoilage, and uncertain returns. At the time, there was no notion of limited liability corporations, and the insurance industry was in its infancy. So, the risks were personal, and adverse outcomes could ruin the investor, and their family, for life. Nor were these voyages typically a small percentage of the venturer’s assets – often they were not just ALL of their assets, but most voyages needed to be syndicated to raise sufficient capital for the undertaking. We are left the idiom – “when my ship comes in” - referring to a favourable outcome to an adventure in trade. I suppose it would be akin to winning the lottery today.
In current usage, the word entrepreneur is frequently taken to mean someone who engages in business enterprises, or one who undertakes or manages. Sometimes there is a hint of personal risk, and sometimes not. Often, those who do not in fact take any personal risk, clothe themselves in the robe of entrepreneurship. I beg to differ.
The word entrepreneur has the same root as enterprise.
- a project or undertaking that is especially difficult, complicated, or risky
- readiness to engage in daring or difficult action
- a unit of economic organization or activity; especially : a business organization
This should be enough of the vocabulary lesson. “What is your point anyway.“ My point is simply that entrepreneurs have a distinct set of psychological attributes that effect how they operate, how they see the world, and how they choose to live their lives. No, they are not all the same, but they share some things in common.
Can it be Taught, or is it Inherent
Over the course of the next few posts (at least a dozen and counting), I want to visit these issues, drawing on entrepreneurs that I have encountered, a population of perhaps 20 or so, engaged in possibly 100 different operations. Having seen them at the feasibility stage, fought them in the board room, argued with them over strategy and tactics, and occasionally, had to clean up some messes, I have a few conclusions about these perplexing people. Myself included, I suppose.
So what makes an entrepreneur? Any business person, a senior manager, someone who runs a business under the eye of a relative that originally founded the firm? Are all entrepreneurs in business? Is all entrepreneuring done in the business world? Most importantly - can it be taught?
Feel free to contribute your stories of any entrepreneur sightings you might have had. If you are an entrepreneur, I’d be interested in your reactions!
6 Comments
To me, being an an entrepreneur requires a unique state of mind. For most people, their objectives in life are to get a well paying job, a nice car, house, wife and kids etc. And generally speaking, those objectives are easily met.
To be an entrepreneur, you need to desperately crave freedom. Thats why most entrepreneurs get into it to “get rich”. To them, wealth is a form of freedom. But wealth can be acquired in other ways (inherited, winning the lottery, careful investing over a lifetime). So craving money and the freedom that it brings isn’t enough.
For an entrepreneur, they must accept and welcome risk. There is no guarantee of success and a very high chance of failure. The risks and stresses of being an entrepreneur are great, but what makes it worthwhile is the rewards: financial gain, freedom, the lack of a boss or having to submit to a bureaucratic or identity-crushing corporate life. Not to mention starting a business and making it succeed is one of the greatest highs that I have ever found.
I agree with a lot of what Worsel said. Frankly to be an entrepreneur takes a lot of balls and just a “damn the torpedoes” will to win.
I think a lot people say they can still make a good life without having to take those risks and the strain. (Like Worsel said)
I think people who are successful entrepreneurs are people who simply don’t like marching to another’s drumbeat and think they can succeed in their field on their own terms better. And reality is the test of whether they’re right or wrong.
Good comments guys.
I think some of what you said in your comments Tinman echoes back to what I said about it not being totally necessary for an entrepreneur to be an explicit businessman.
Worsel, you raise a good point in that most entrepreneurs can’t stand a corporate atmosphere and the strings that come attached with it. I found that its very difficult to do much innovation in a corporate environment.
Pilot, I agree that an entrepreneur doesn’t have to be a businessman in the way that everyone thinks of one. I don’t run a company per se, but I do conduct business by selling my services.
I went solo for the reasons that Worsel and Tinman hinted at. I looked at the company I was working at and decided that I could work better, harder, smarter, and make more money outside of a corporate scene than in it.
For me, an entrepreneur is someone who craves freedom and independence in their lives’ work, and goes out and gets it (or attempts to…)
Hi there, I manage my friend’s band and I just thought I’d put in my two cents.
I definitely agree that you don’t have to be a businessman to be an entrepreneur. The band I manage, they had played together for a few years, started writing some songs, but one day they got tired of their day jobs and decided to go and try and get a record deal and make things work. Then they called me to manage them. That took a great deal of desire for freedom and independence to throw away their livelihoods and try and chase a dream, especially given that any band’s chances of success are low.
To me being an entrepreneur is all in the mind and how you decide to live life. Do you approach your work as a means to an end or as the end in itself?
Well, but not all business people are desparately seeking creativity or freedom - sometimes, we just want money. Lots and lots of filthy lucre. Careful with the generalizations . . .
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