Who is considered an entrepreneur?

An entrepreneur is defined as an individual who organizes and manages a business, taking on the associated risks and responsibilities. This role encompasses not only the initiation of new ventures but also the innovation and strategic direction necessary for success. Entrepreneurs are often characterized by their ability to identify opportunities, mobilize resources, and bring ideas to fruition, effectively combining creativity with practical execution.

In contrast, someone who only invests in businesses may not actively manage or organize the operations, thus lacking the entrepreneurial involvement. A person who works for a large corporation typically follows defined roles and responsibilities without having ownership or direct managerial control over the business. Lastly, a person who follows strict business procedures may be adhering to established guidelines without the flexibility and innovative spirit that defines an entrepreneur’s approach to business. These distinctions highlight how the active role and vision of an entrepreneur set them apart in the business world.