Entrepreneur: What is an entrepreneur?
An entrepreneur is someone who starts a new business and is self-employed, as opposed to an employee who works for others. Entrepreneurs play a key role in any economy, using their skills to anticipate needs and bring new ideas to the market. More than a profession, entrepreneurship often responds to many personal motivations, even if this activity is not without risk.
And you, would you be ready to start? And you, would you be ready to start? Master of Science Innovation & Entrepreneurship.
How to define an entrepreneur?
An entrepreneur is generally someone who starts a new business, takes an active role in its operations, assumes most of the financial risk and benefits from most of its success. The process of starting a new business is known as entrepreneurship and is often driven by the commercialization of new product or service ideas.
The entrepreneur should not be confused with the head of the company because the latter is an employee who is legally dependent on his company. On the contrary, the entrepreneur is independent and responsible for his actions, and he organizes his work as he sees fit.
The idea of an entrepreneur continues to evolve and develop: an entrepreneur can be the founder of a startup as well as a freelancer or a business owner.
An entrepreneur develops his company by gathering the financial, physical and human resources necessary for its proper functioning. Risk management is an inseparable element of entrepreneurship because the entrepreneur usually invests his own funds and is financially responsible for the actions of his company.
What is the role of an entrepreneur?
The role of the entrepreneur is first to organize the resources necessary for the commercial exploitation of a product or service and the development of his activity. It can be the launch of a new innovative product that meets a market need, the creation of an improved and expanded service or the marketing of an existing product that is better and cheaper than its competitors.
From the very beginning of a business, the entrepreneur must effectively distribute the responsibilities of each person. Hiring qualified and competent staff requires a lot of care, especially for small businesses. An entrepreneur is also responsible for organizing a business environment that helps each employee maximize their potential.
The entrepreneur must know how to anticipate the evolution of his activity by taking up many challenges. He has to make important decisions, especially when his company is new and he does not yet have a very precise knowledge of his market. They can, for example, concern the reduction or increase of its stocks, the acquisition of equipment or the search for new financing.
It is also essential to know how to seize all opportunities likely to develop or stimulate the company’s sales. The entrepreneur must be able to identify products or services to improve and new markets to conquer. The entrepreneur must listen to his customers and prospects to identify the needs to be satisfied.
What does a entrepreneur earn?
There are as many entrepreneurs as there are companies, and each case is of course different. Most entrepreneurs do not pay themselves salaries but remunerations: depending on the status of the company (sole proprietorship, SARL, EURL…), the manager can be considered as a non-salaried manager or as an employee. The average income of an auto-entrepreneur is 9000 euros per year while Bernard Arnault, entrepreneur and CEO of the LVMH group, is the third richest man in the world with an estimated fortune of 153 billion euros!
The average income for an entrepreneur in France is about 52,000 euros per year, again with strong variations depending on the sector of activity. It is 2000 euros in the transport sector, 3500 euros in wholesale trade and 6100 euros in financial and insurance activities.
What are the steps to becoming an entrepreneur?
The road to office life definitely doesn’t tempt you and the idea of becoming your own boss is starting to take hold?
Proceeding step by step is the best way to succeed in making your project a reality.
Step 1: Find the right idea
Entrepreneurship is a broad term and you can be an entrepreneur in just about any industry. It all starts with an idea, and yours must be good enough to motivate you without ever making you want to give up. Draw up your “Business Plan” by carefully studying your market, the objectives to be achieved and the means to get there.
Step 2: Build your network
Don’t hesitate to ask for help from other professionals or mentors. Taking the time to “network” and build new relationships can give you a serious competitive advantage. Also, take the time to find out about potential investors and the funding and grants you may be eligible for in your business start-up.
Step 3: Achieving Financial Stability
Although it is always possible to obtain additional capital, it is advisable to start with enough capital to get started before you start to make money, as the first profits often do not arrive for two or three years. Do not hesitate if necessary to surround yourself with financiers and managers to help you secure your profitability.
Step 4: Stay motivated
Never forget why you decided to start. Stay focused on what made you want to move forward in the first place, what we call the “why”. Turn your “why” into a vision and make it the mission of your company, both for you and for the people who work with you. Nothing is more motivating than knowing why you are motivated!
Do you want to give your business creation project every chance by mastering the fundamentals of management and maximizing your potential as an entrepreneur? Join our program Master of Science Innovation & Entrepreneurship.