Entrepreneur facts for kids
An entrepreneur is a person who starts a new business. They do this to make money from a good idea or opportunity. Instead of working for someone else, they create their own company.
Entrepreneurs are very important for any country's economy. They are the people who see what people need now or in the future. Then, they bring new products or services to the market.
If an entrepreneur's new business is successful, they earn profits and become well-known. Their business can also grow bigger. But starting a business is risky. Many entrepreneurs fail, lose money, and have to close their businesses.
An entrepreneur takes on all the risks and rewards of their business. They are often the main owner or have most of the shares. They make the big decisions and manage the business activities.
Joseph Alois Schumpeter, a famous economist, studied entrepreneurs. He found that they see profit as a way to measure their success. He also said that entrepreneurs:
- Value being independent and doing things themselves.
- Want to be excellent and stand out.
- Are very hopeful and positive.
- Like challenges that have a medium amount of risk.
Sometimes, entrepreneurship is seen as one of the main things needed for an economy. The others are land (natural resources), labor (workers), and capital (money and equipment). An entrepreneur brings these together to make goods or provide services. They usually create a business plan, hire people, get resources and money, and lead the business.
Entrepreneurs often face many challenges when they are building their companies.
Getting money to start a new business can be hard because it's risky. Many entrepreneurs start with very little money. This is sometimes called "bootstrapping." It means they use their own savings or small loans.
Some entrepreneurs start small businesses by themselves with limited funds. Others work with partners. These partners might bring more money or other helpful resources to the business.
What is Entrepreneurship?
Economists have had different ideas about what an "entrepreneur" means. The word "entrepreneur" comes from a French word, entreprendre. It means "to undertake" or "to start something."
For a long time, economists didn't include entrepreneurs in their main ideas. They thought that everyone knew everything about the market. This left no room for people taking risks or discovering new things. It wasn't until the mid-1900s that economists started to seriously think about entrepreneurship.
Three important thinkers helped bring entrepreneurs into economic ideas: Joseph Schumpeter, Frank Knight, and Israel Kirzner.
- Schumpeter believed that entrepreneurs were the ones who created new things. They did this because they were looking for profit.
- Knight focused on entrepreneurs as people who dealt with uncertainty. He thought they were responsible for the extra money earned from risky investments.
- Kirzner saw entrepreneurship as a process of discovery. He thought entrepreneurs found new opportunities in the market.
Images for kids
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Emil Jellinek-Mercedes (1853–1918), here at the steering wheel of his Phoenix Double-Phaeton
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In 2012, Ambassador-at-Large for Global Women's Issues Melanne Verveer greets participants in an African Women's Entrepreneurship Program at the State Department in Washington, D.C.
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Student organizers from the Green Club at Newcomb College Institute formed a social entrepreneurship organization in 2010.
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Malala Yousafzai, a Pakistani activist, social entrepreneur and youngest-ever Nobel Peace Prize winner
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Apple co-founder and longtime leader Steve Jobs (pictured in 2010) led the introduction of many innovations in the computer, smartphone and digital music industries
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See also
In Spanish: Emprendimiento para niños
