Entrepreneur, the risk bearer
# The word "entrepreneur" origins
The word "entrepreneur" has its origins in the French language. It is derived from the French verb "entreprendre," which means "to undertake" or "to do something." The term was first used to describe individuals who undertook and managed business ventures, taking on the risks associated with them in the pursuit of profit.
The word "entrepreneur" can be traced back to the 18th century when it was popularized by the French economist Richard Cantillon. In his 1755 book, "Essai sur la Nature du Commerce en Général" (Essay on the Nature of Trade in General), Cantillon described an entrepreneur as someone who bears the risk of buying and selling goods at uncertain prices. Later, the term evolved to encompass a broader range of activities, including innovation and the creation of new businesses.
# Wearing many hats
That said, entrepreneur obviously has to wear many hats and possess many traits in order to be successful. One of the key responsibilities and roles though is to bear the risk associated with starting and running a business. The most obvious might be the financial risk but this is not the only one since there are huge operational and strategic risks in the equation.
# Financial Risk
Let's admit it, running a new business sounds extremely cool. On the other hand, running a new business requires a significant amount of capital investment, whether it be from personal savings, loans, or investments from others. This sounds scary, I know 😬
Entrepreneurs are responsible for putting their own money and resources at stake to launch a business. They must also be willing to take financial risks to keep the business afloat, especially in the early stages when revenue may be low or even nonexistent.
# More Risk
Additionally, there are operational risks associated with starting a business. Entrepreneurs may encounter unexpected challenges and setbacks, such as supply chain disruptions, legal issues, or changes in the market landscape. They are responsible for navigating these challenges and finding solutions to keep the business running.
Strategic risks are also a key component of entrepreneurship. As the leaders of their business, they must make critical decisions about the direction of the company, such as which products to offer, which markets to enter, how to allocate resources or even who they are going to hire. These decisions involve a level of uncertainty and risk, as they cannot predict with certainty how the market or competition will respond to their choices.
Overall, entrepreneurs must be comfortable taking risks and accepting the potential consequences that come with them. So why should I become entrepreneur in the first place? Didn't I mention how fulfilling it feels to run your business?
While entrepreneurship is not for everyone, the potential benefits can make it an attractive path for those who are willing to take on the risks and challenges involved. Cheers!!
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