Entrepreneurs and entrepreneurship explored

Many people at some point in their life or career will have an idea that could potentially lead to starting a new business. Few people will actually do so.

Those that do will have certain personal traits and life influences that determine whether they act on their idea.

If you’re prompted to start your own business it could also be because of positive or negative factors that exist at that particular time. In good economic times more opportunities may attract or pull you into starting your own business. Alternatively in recessions circumstances such as unemployment may push you to do so.

To start up a business is often referred to as entrepreneurship. As a result self-employed people are often referred to as entrepreneurs. Though they share common traits and attitudes not all self-employed people are, or will become entrepreneurs. To confuse the issue further it is possible that you could manage a business for an employer and also be entrepreneurial. It is possible that neither may be entrepreneurial. This is described best in the diagram below which shows these interrelationships

Whilst employed managers are different from self-employed – it’s possible both may be entrepreneurial.

Entrepreneurs are unique. The share traits found in employed and self-employed. They are distinguished by their actions, goals and aspirations. They can be recognised by their innovation and attitude to risk.

They can also be recognised by how they change and grow their businesses. Typically self-employed managers who are not entrepreneurs will control a business they love, employ small numbers (if any apart from themselves), and will not experience significant growth or develop export potential.