Definition of Entrepreneur
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Definition of Entrepreneur has some surprising qualities depending whether your perspective is as an old or a new entrepreneur.
Most people think the definition of an entrepreneur is a person who risks losing their money to potentially make money (profit).
Risk is defined, from an entrepreneurial prospective as taking a chance; either to win or to lose, or in this case to make money or to lose money.
The definition of entrepreneur is broad enough to include a phrase like, does not receive subsidized or free money to apply to the business undertaking. Sure an entrepreneur may take out loans or sell stock or a piece of the business to generate operational cash for his/her business operations, but this is eventually paid back to the bank or investor/stockholder.
I like the definition of entrepreneur to be simply stated: A person who starts and runs a business.
This definition does not imply that an entrepreneur is not one if the business fails or is one only is the business is successful.
Why?
Because, being an entrepreneur is an action. It's an attempt at working toward a potential favorable outcome. If you fail, you were still working toward a positive outcome, but didn't make it.
Is the Definition of Entrepreneur different when applied to Online or Offline Businesses?
OFFLINE
Prior to the .com era, businesses were in offline or bricks and mortar settings. They had storefronts or offices. An entrepreneur invested significant capital to start the business. These funds went for rent, advertising, utilities, staff and products.
In this model the definition of entrepreneur included not only the financial responsibility of cash flow, but also management of personnel, advertising, marketing and sales efforts.
In a small business, when it needed cash, the owner/entrepreneur took money from his/her savings. Often there was no salary, especially in the early years of start-up.
What the owner received as income may not have occurred until January or February of the following year after the books were closed and taxes paid.
Often the entrepreneur only made real money when the business was sold.
ONLINE
Within the last 8 to 10 years, the definition of entrepreneur has changed significantly.
The
Small Business Administration
estimates that 52% of all businesses are now home-based, with most of those occurring online. The landscape has now changed for the entrepreneur.
The definition of entrepreneur still includes, a person who starts and runs a business, but no longer is there significant financial risk.
In fact, the risk factor has changed from financial investment to time investment.
Why?
- The annual financial investment in an online business is usually $1,000 or less, usually less.
- To build a Web-based business, a significant amount of time is required to build your website. Working either full time or part time, it may take you many months of sweat equity before any return is expected.
(After searching for weeks for the best website building method I have used Site Build It, or as it is known, SBI. .)
- If you are selling down loadable products or tangible ones, your inventory cost is minimal and controllable.
- The new entrepreneur has no rent, little, if any, advertising costs, no utility costs and no personnel costs.
It's basically a one person or person and spouse/partner entrepreneurial effort. You accept all the risk (little), and keep all the profits for yourself.
And, no matter if your a retiree , a stay at home Mom or a student, you can build a successful online business.
- The new definition of entrepreneur means you are no longer a slave to your business, but now have family and social time to lead a much less stress-reduced life.
- Your online service or product is available 24/7 and worldwide in scope. It works for you pretty much on "autopilot."
After development of your online business, most entrepreneurs spend less than 3 hours a week maintaining it.
Definition of Entrepreneur: What hasn't changed?
The traditional offline, bricks and mortar business success was significantly determined by three elements: Location, Location and Location.
The concept might have been great, the product and service outstanding, but, unless store traffic was generated (mostly by location and the number of competitors of the business), success was highly doubtful.
The small business was limited by its neighborhood traffic or regional traffic, at most. Even being located in a large regional mall was no guarantee of success.
The same is true for the online business.
Nearly 99% of all websites do not generate traffic! That's a FACT! Yes, even if you pay a typical website development company to build your site, the same result--no traffic--is likely.
This FACT is the single hardest element for the new entrepreneur to get their mind around...and accept!
Why?
Generating online traffic is essentially the same as the old Location, Location, Location adage of the past.
Only on the Web, you have to be noticed by both humans and the search engines to achieve a page 1 or 2 ranking to get noticed by customers.
Let me ask you a question.
What percentage of the time do you go to the the third page, or page 4 through 12,684,092 to get the information you seek when visiting the Internet?
This is why location of the Search Engines is so important.
Did you know that nearly 96% of all searchers using the Internet only go to page one. Less than 3 percent will turn to page two!
Your chance of getting in the top 3% of all websites, or getting in the right location, is very very small unless the entrepreneur builds their website on a strong foundation: using lots of great content, solid keywords placed properly on each page, and good inbound links to get noticed by the Search Engines.
As with any business, even an online one, the entrepreneur must research the competition of each keyword to determine the likelihood of traffic and profitability. 
Most website builders and entrepreneurs do not do this! The result: No traffic!
As previously mentioned,I use Site Build It, the only company of its kind and the largest web-training site in the world.
They will show you step-by-step how to get a ton of traffic. They are experts at it. You will too be an expert!
They never advertise. Their growth is all by word of mouth. Thousands of entrepreneurs use SBI as their site foundation.
As you can tell, the definition of entrepreneur has vastly changed.
While the capital required for an online business is small and there is little financial risk for the new entrepreneur, the sophistication of developing a Web-based business is challenging.
It still takes hard work and focus applied to the effort. But it can be simple if using the right resource.
But, if the new entrepreneur builds the online business site well, then years of reward will follow with little further time or money investment.
This is a huge reward for a business website build on a solid foundation.
I just love the new definition of entrepreneur! Don't you?
Please continue to read the entrepreneur links below. They offerinsight on what it takes to be a successful entrepreneur.
If you would like to know significantly more about SBI, this 15 t0 20 minute video tour hooked me. You'll learn lots even if you do not sign up for SBI.
You can build a successful online business with SBI!
What This Means to You
- This new definition of entrepreneur means you are no longer a slave to your business. You now have a social life and family time to lead a much less stress-reduced life.
- Your online service or product is now available 24/7 and worldwide in scope. It works for you pretty much on autopilot.
After developing an online business, most entrepreneurs spend less than 6 to 10 hours a week maintaining it.
Yes, the definition of entrepreneur has certainly changed.
Thank you for visiting Definition of an Entrepreneur.
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The National Association of Entrepreneurs offer educational resources
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Please go from Definition of Entrepreneur to How to Become an Entrepreneur
Please go from Definition of Entrepreneur to the Profitable Small Business Ideas home page.
