New businesses are started by people called entrepreneurs. An entrepreneur, most often a single individual, is someone who plans, organizes and manages a business organization willingly taking on potentially high financial risks, and other risks in starting a business.
They have their own idea for a new business that is usually unique.
An entrepreneur is able to combine three factors of production such as land, labor and capital to produce a good or deliver a service thanks to entrepreneurship. Entrepreneurship describes characteristics of business leaders who tend to be distinctive in their temperament, attitude and outlook to drive the business toward success in unknown future.
Entrepreneurs have the skills required to oversee the whole production process. By selling the good or service produced, the entrepreneur is able to generate sales revenue which is then used to pay rent for company buildings, pay wages to the workers and interest on the capital borrowed, if any. Whatever is left, is called the profit which the entrepreneur cashes in into his or her own pocket as a reward for taking risk.
Successful entrepreneurs such as Elon Musk or Richard Branson are creative with their business ideas, innovative when it comes to creating new products and passionate about working with other people. They look for and exploit business opportunities in different markets by responding to fast changes in the marketplace. Sometimes they steal ideas too.
Although different entrepreneurs have their own ideas for a business, what they have in common is that they are prepared to invest their own savings in a business organization they believe in from the start, accept all the responsibilities of managing the business (especially their workers), accept financial risks and the risks of failure which means incurring personal costs of losing money and time, and are willing to make all the decisions about the management of their business.
As a reward for success, they put their vision into life, do what they love and take all the profit generated by the business as operators of the organization.
