What Is an Entrepreneur? + How to Become One

An entrepreneur takes on the adventure and risk of starting a new business, either on the side or as a full-time job. Successful entrepreneurs build and scale their businesses to become profitable. At its core, being an entrepreneur is about identifying a need and building a business to address it. It's about turning ideas into reality, taking calculated risks, and fostering innovation.

In the following article, you'll discover four types of entrepreneurs, the traits they have in common, and how to become an entrepreneur yourself.

Entrepreneur definition

When hearing the word entrepreneur, you may think of someone who has launched a start-up. While this is true, an entrepreneur is a person who sees a need and works to create a business that solves that need. It’s someone willing to take a risk and turn their business idea into reality.

Who is an example of an entrepreneur?

Some famous examples of entrepreneurs include Ritesh Agarwal, Falguni Nayar, and Sushmita Sen. These self-made magnates had a vision and saw it through, pushing past hardships and staying on course. 

These individuals also show that entrepreneurship can look different and that you don't have to be an inventor or engineer to start a business. Looking at famous examples of entrepreneurs illustrates the diversity and possibility of entrepreneurship.

What are the characteristics of an entrepreneur?

Entrepreneurs tend to be hardworking, innovative, and resourceful because, in the beginning, they’re often solely responsible for the success of their ventures. Building a business involves hard work and financial risk. No matter how brilliant a start-up idea may be, entrepreneurs must possess the following skills:

• Adaptability: If an idea isn’t working, you may need to adapt quickly and find solutions.

• Networking: Networking can be one of the most valuable skills you learn as an entrepreneur. Growing a successful business requires a lot of time and effort. Creating a network of like-minded individuals can help you market your new business and stay motivated and enthusiastic when challenges arise. Collaboration and networking can also create opportunities to learn from other entrepreneurs.

• Fundraising: If you need the resources to start your new business venture, you will likely have to spend a fair amount of time pitching your idea and seeking investment opportunities. The acquisition of capital funding can require a high level of perseverance.

• Leadership: As your company’s founder, you must make important decisions and build and manage a team

While requirements regarding formal training, certification, or education can be flexible, entrepreneurs are driven and lifelong learners. Examples of entrepreneur classes and certificate programs include:

• (FREE) English for Business and Entrepreneurship offered by the University of Pennsylvania

• (FREE) Launch your Online Business offered by the State University of New York

• Entrepreneurship Specialization offered by the University of Pennsylvania

Is being an entrepreneur a career?

Whether scaling your company long-term or working as a consultant for other entrepreneurs, it is possible to turn entrepreneurship into a lifelong, full-time career. It requires determination, but the reward of financial independence and working for yourself is worth it for many entrepreneurs. You can help solve problems, innovate, and bring value to the economy. If additional business opportunities present themselves, you may even start more than one.

What are the four types of entrepreneurs?

Each type of entrepreneur is based on one of the following business models:

1. Large company entrepreneurs launch businesses within an established business by acquiring or creating a new internal division. Examples include Meta’s acquisition of Instagram and Google's launching of Google Maps.

2. Small business entrepreneurs open businesses with few employees. Often, they open a single location or offer professional services to a small list of clients. You might start an organic food delivery service, a local bakery, or a handmade home decor business.

3. Social entrepreneurs work to create societal change with their products or services. They aim to create a sustainable business that can solve a societal problem or address a social issue. Examples include Goonj, the non-profit dedicated to disaster relief and humanitarian aid, and SELCO, the for-profit that provides affordable and sustainable energy solutions.

4. Scalable start-up entrepreneurs start businesses with the intention of widespread, long-term growth. They are innovators who often have a novel idea that shakes up a new market or launches it altogether. Examples include companies like Meta and Uber.

How to become an entrepreneur

To become an entrepreneur, consider the viability of your ideas and research whether anyone else is doing something similar. After assessing the viability of starting your own business, go in-depth by building your business plan, from financing to product development. 

Conduct research. 

Consider the following questions to help you learn about your new business venture:

• Is your idea solving a problem that needs fixing? 

• How can you disrupt long-standing industries or niche markets with modern technology? 

• What does your competition look like? You’ll want to do a competitor analysis and determine whether your idea is a need others have and would be willing to pay for.

Build a network.

Once you’ve determined if your idea can become a successful business, focus on building your network with individuals who support you. Attend networking events in your area and connect with investors, lawyers, and anyone who can help. Consider finding a mentor who can guide and advise you as you work out the details of your business’s operations. 

Get organised.

Organising your idea into actionable steps and a clear plan is important in starting a business. Create a business plan and consider having a business partner or professional review and offer feedback. You can also hire someone to write one for you or use free online resources to create one. 

Next, incorporate your business and open a bank account. Pick a location and get settled in. Create a proof of concept as early as possible to attract investors to help fund your business. Interacting with and getting feedback from investors and customers is valuable in shaping the direction of your business.

Get funding.

If you’re taking out a loan, determine what type of loan you’ll need and the payments you can afford. Gather all required documentation required by the lender. Make sure you apply for the right loan based on your business and financial situation. Entrepreneurs may apply for several business loans, such as lines of credit, personal loans for business use, and low-interest loans through Pradhan Mantri Mudra Yojana (PMMY), headed by the Government of India.

If you’re seeking out investors, be ready to present your business plan, including financial plans and why the investor would benefit from funding your idea.

Build and test.

Building and rolling out your minimum viable product (MVP) can help engage your first potential customers and validate your idea. Take this opportunity to see what works and what doesn't. This trial-and-error phase is essential to the long-term success of your business. 

You'll want input from a wide variety of people. Use the feedback to help you make decisions about your company’s progression. Your concept doesn’t have to be perfect. This step ensures people are interested in your product or service and allows them to fine-tune it based on feedback.

After gathering data and implementing changes from your test run, your product and business plan should be relatively polished and targeted to intended consumers. Having these details in order can make convincing investors to fund your venture easier. 

Scale your business.

Take the money you’ve raised and allow what’s needed to build and scale your business. As a tip, many successful business owners suggest starting with the end in mind to align your goals as you scale your business properly. Manage your cash flow accordingly, and you may see the growth that matches your initial dreams for the company or beyond.

Resources for entrepreneurs

Many resources are available to entrepreneurs in India. Here are a few helpful ones for first-time and seasoned entrepreneurs alike: 

• The Office of the Controller General of Patents, Designs, & Trade Marks provides the resources you need to file for a patent, trademark, or copyright.

• India PR Distribution offers free and discounted options for distributing press releases to search engines, news websites, and journalists.

• Pradhan Mantri MUDRA Yojana (PMMY) provides resources to help you start your business, including information on affordable government loans.

• Chatur Ideas connects you to a network of small business mentors and a knowledge hub full of useful business articles.

• Your board of advisors can provide counsel, advice, and support for your business.

Getting started with Coursera

Entrepreneurs are the driving force behind innovation and problem-solving in the business world. As an entrepreneur, you identify unmet needs and take calculated risks to turn ideas into reality. From small, local businesses to industry-disrupting startups, entrepreneurs come in all shapes and sizes. Success often lies in identifying a gap in the market, fostering creativity, and possessing the tenacity to turn your vision into a thriving business.

Learning more about entrepreneurship can be a great way to prepare for your venture. Consider the following programs to get started: