 The word entrepreneur is used to describe people who "take on the risk"

between buyers and sellers or who "undertake" a task such as starting a new
venture. Inventor creates something new; entrepreneur assembles all the
resources needed to transform an invention into a viable business.
Entrepreneurship is the art of turning an idea into a business.
 Sam Hogg saw an opportunity to create a single place for people to shop
for electronic gift cards. He risked his career by passing up alternatives to
work on GiftZip.com full-time.
 Entrepreneurial firms are typically proactive innovators and are not averse to
taking calculated risks; while conservative firms take a more "wait and see"
posture and are risk averse.
Why Become an Entrepreneur?
The three primary reasons that people become entrepreneurs and start their
Own firms are to be their own boss, pursue their own ideas, and realize financial
rewards.

Be Their Own Boss

Entrepreneurs want to be their own boss for a number of different reasons, whether
it's because they are ambitious or have become frustrated with working in the
corporate structure.
Wendy DeFeudis, the founder of Very Wendy, says that working for herself has
been more satisfying than working for a large firm.
Steve Jobs is perhaps America's best-known and most influential entrepreneur.
Jobs' innovations include the iPhone, iPad, iPod, and Apple's App Store and iTunes
music store.
Pursue Their Own Ideas
The second reason people start their own firms is to pursue their own ideas. Some
people are naturally alert and when they recognize ideas for new products or
services, they have a desire to see those ideas realized.
Graphic.ly is a social digital distribution platform for comic book publishers and
fans. Kevin Mann became discouraged when he couldn't find a comic book in
which he was interested. He decided to quit his job to build the iTunes of comics
after taking a 100-mile train journey to search for it.
Pursue Financial Rewards
The financial lure of entrepreneurship is its upside potential. Making a profit and
increasing the value of a company is a solidifying goal that people can rally
around. Some entrepreneurs report that the financial rewards associated with
entrepreneurship can be bittersweet if they are accompanied by losing control of
their firm.

Characteristics of Successful Entrepreneurs

Passion for the Business
Successful entrepreneurs share a passion for their business, whether it is in the
context of a new firm or existing business. This passion typically stems from the
entrepreneur's belief that the business will positively influence people's lives.

FIVE PRIMARY REASONS PASSION IS IMPORTANT FOR THE

LAUNCH OF A SUCCESSFUL ENTREPRENEURIAL ORGANIZATION
 Reason Passion Is Important
 The ability to learn and iterate.
 A willingness to work hard for an extended period of time.
 The ability to listen to feedback on the limitations of your organization and
yourself.
 Perseverance and persistence when the going gets tough.

Product/Customer Focus
Good products and customers are two of the most important elements in any
business. It's important to think about management, marketing, finance, and the
like if a firm does not have good products with the capability to satisfy customers.
A product/customer focus involves an intense focus on creating a high-quality
computer that is easy to learn, is fun to use, and meets the needs of a wide audience
of potential users. It also involves the diligence to spot product opportunities and to
see them through to completion.

Tenacity despite Failure

Because entrepreneurs are typically trying something new, the failure rate is
naturally high. A defining characteristic for successful entrepreneurs’ is their
ability to persevere through setbacks and failures.

Execution Intelligence
Execution intelligence is the ability to translate an idea into a viable business. Jeff
Bezos, the founder of Amazon.com once said, Ideas are easy. It's execution that's
hard. For many entrepreneurs, the hardest time is shortly after launching their firm.

Common Myths about Entrepreneurs

Myth 1: Entrepreneurs are born, not made.
This myth is based on the belief that some people are genetically predisposed to
being entrepreneurs. Entrepreneurs are not genetically different from other people,
and everyone has the potential to become one. Whether someone does or doesn't is
a function of environment, life experiences, and personal choices.
Although no one is “born” to be an entrepreneur, there are common traits and
characteristics of successful entrepreneurs
• Alert to opportunities
• Creative
• Decisive
• Energetic
Myth 2: Entrepreneurs are gamblers
A myth about entrepreneurs is that they are gamblers and take big risks.
Entrepreneurs typically have jobs that are less structured and face a more uncertain
set of possibilities than managers or rank-and-file employees. Many entrepreneurs
also have a strong need to achieve and often set challenging goals.
Myth 3: Entrepreneurs are motivated primarily by money.
It is wrong to think that entrepreneurs don't seek financial rewards, and that money
is not the primary reason why they start new businesses.
Myth 4: Entrepreneurs should be young and energetic.
Entrepreneurship is fairly evenly spread out over age ranges. Kauffman
Foundation: 26 percent of entrepreneurs are ages 20 to 34, and 23 percent are ages
55 to 64. Increasing number of older-aged entrepreneurs is a big change in the U.S.
entrepreneurial landscape.
Myth 5: Entrepreneurs love the spotlight
Entrepreneurs are the source of many of the 2,850 companies listed on the
NASDAQ. But how many of these entrepreneurs can you name? Perhaps a half
dozen? Most of us could come up with Bill Gates of Microsoft, Jeff Bezos of
Amazon, Steve Jobs of Apple Inc., and Mark Zuckerberg of Facebook.

Types of Start-Up Firm

Changing Demographics of Entrepreneurs

Women Entrepreneurs
There were 6.2 million women-owned businesses in 2002 (the most
recent statistics available)
This number was up 20% from 1997.
Minority Entrepreneurs
Minorities owned roughly 18% of U.S. businesses in 2002.
This number was up 10% from 1997.
Senior Entrepreneurs
Although statistics are not kept on senior entrepreneurs, there is strong
evidence that the number of older people choosing entrepreneurial
careers is rapidly increasing.
Young Entrepreneurs
Interest among young people in entrepreneurial careers is growing.
According to a Gallop study, 7 out of 10 high school students want to
start their own business.
Over 2,000 two-year and four-year colleges and universities offer
entrepreneurship courses.

Economic Impact of Entrepreneurial Firms

Innovation
Is the process of creating something new, which is central to the entrepreneurial
process.
Small firms are twice as innovative per employee as large firms.
Job Creation
In the past two decades, economic activity has moved in the direction of smaller
entrepreneurial firms, which may be due to their unique ability to innovate and
focus on specialized tasks.
Impact on Society
The innovations of entrepreneurial firms have a dramatic impact on society.
Think of all the new products and services that make our lives easier, enhance our
productivity at work, improve our health, and entertain us in new ways.
Impact on Larger Firms
Many entrepreneurial firms have built their entire business models around
producing products and services that help larger firms become more efficient and
effective.

The Entrepreneurial Process

The Entrepreneurial Process Consists of Following Steps
6 stages of the entrepreneurial process:
Brainstorm and explore
Get organized
Build your network
Form your business
Find investors and partners
Market and launch

Brainstorm and explore

Many entrepreneurs struggle to decide what service or product they can offer the
marketplace. If this is the case for you, you'll want to begin brainstorming right
away. Once you have an idea, it's important to nail down some specifics and begin
prospecting.
Get organized
Once you know what you're looking to build, you'll want to get to work right away.
Research the market to be sure no competitors are offering the same product or
service. You'll need to know how to market yourself, which is one of the key
entrepreneurial skills.
Build your network
As an entrepreneur, you're going to need a wide network of connections. It can be
essential to interact with like-minded individuals who share your business interest.
Consider what types of vendors you'll need and begin connecting with them as
early as possible. You can also use this time to scope out potential employees.
Form your business
Whether you're starting an online business or seeking a more traditional business
model, you'll need to decide the type of business entity you want to form. You
should also get your business ready for marketing by ordering business cards,
reserving a website domain, and creating business email addresses.
Find investors and partners
Now that your business is formed, it's time to find the financing you need to launch
your big idea. You can reach out to professional connections to form partnerships
or offer shares in your company. Other ways to raise funds include applying for
small business grants or loans.
Market and launch
Now that you've raised the money for your product or service, it's time to get
ready. This could involve hiring employees, contractors, or vendors, or working on
initial manufacturing and development. You'll also need to secure office space and
test products through quality assurance processes.
Your next move
An entrepreneur's work is never done. You might focus on scaling your business
for future growth, brainstorm new product or service lines, or turn your attention to
your next bold business idea. Use this six-stage process to help you plan out your
next move confidently every time.