The Role of an Entrepreneur: Past to Present

The Role of an Entrepreneur: Past to Present

"Although the term 'entrepreneur' has attracted scores of different definitions, it usually refers to business behavior related to innovation and growth," (Beaver G. , 2003, p. 178). Many people think that entrepreneurial ventures and small businesses are the same, but they are not (Robbins, Decenzo, & Coulter, 2011, p. 111). The difference between the two in essences is the mindset and motivations of the individual. The entrepreneur focuses on innovation. Whereas the small business owner focuses on making a living "that doesn't necessarily engage in any new or innovative practices" (Robbins, et al., 2011, p. 111). The purpose of this paper is to evaluate the role of an entrepreneur from the past to the present.

Richard Cantillon first used the word entrepreneur in an essay during the pre-Industrial Revolution period (Wren & Bedeian, 2009, p. 42). At that time, the term "entrepreneur applied to anyone who bought or made a product at a certain cost to sell at an uncertain price" (Wren & Bedeian, 2009, p. 43) and it usually referred to any self-employed person. For years, economists viewed entrepreneurship as a small part of economic activity. But in the 1800s, the Austrian School of Economics was the first to recognize the entrepreneur as the person having the central role in all economic activity (Brian, 2005). According to Jean Baptiste Say (1767-1832), the role of entrepreneurship "requires a combination of moral qualities such as judgment, perseverance, and knowledge of the world as well as of business" (Wren & Bedeian, 2009, p. 43).

Along with the moral qualities, entrepreneurship requires unique characteristics as well. Entrepreneurs are identified as "high energy creative people, who are self-confident, have high levels of self-esteem and are futuristic in their outlook as they seek to incessantly solve problems, take risks and learn from failures (theirs and others)" (Baskerville & Flanagan, 2010). They start businesses, drive innovation, and create good jobs. They create "organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals" (Robbins, et al., 2011, p. 111). They are the risk takers of our society and we recognize them for being "outside of the box" thinkers.

Modern day entrepreneurs like Bill Gates, co-founder of Apple, and Mark Zukerberg, co-founder of Facebook, are responsible for connecting people around the world to operate businesses and network socially. Entrepreneurs like Andrew Rugasira, founder of Good African, a coffee manufacturer (Clay, 2010) and social entrepreneur and Nobel Peace Prize winner, Muhammad Yunus, founder of microcredit and the Grameen Bank (Muhammad Yunus - Biography) have also begun to change the global scene. These are examples of companies and individuals