What Exactly Does Entrepreneurship Mean?
The word entrepreneur has originated from the French word ‘entreprendre’, which means ‘to undertake’. The term ‘entrepreneur’ takes different meanings in different contexts. Entrepreneur is a person who has a very high aptitude and pioneers change; at the same time, entrepreneur could also be someone who possesses the characteristics that are found only in a very few members of the society.
In addition, anyone who wants to be self-dependent and self-employed is also considered to be an entrepreneur.
Entrepreneurship vs. Small Business:
In today’s day and age, the term ‘entrepreneur’ has popularly come to mean ‘someone who has his own start up or small business’. Though this definition is appropriate in part, there are several other significant differences between an entrepreneurial venture and a small business such as:
- Amount of wealth creation – The difference is that a successful entrepreneurial venture creates substantial wealth, typically in excess of several million dollars of profit, rather than just simply generating an income stream that replaces traditional employment.
- Speed of wealth creation – the difference in speed is that although several small businesses are somehow be able to generate several mission years over their lifetime, entrepreneurial wealth creation often is much quicker, i.e., within five years or so.
- Type of Innovations created – Entrepreneurship often requires some innovation beyond that shown in small businesses. Such a form of innovation gives the venture a significant competitive advantage, which results in successful wealth creation. Hence, innovation or the capability ‘to think out of the box’ is one of the most important traits that any entrepreneur must have.