Defining an Entrepreneur

In our society today, many individuals consider an entrepreneur as someone who creates their own business from scratch. However, a true entrepreneur means so much more. Through the articles of Hebert and Link, Sarasvathy and Gartner, it is found that an entrepreneur can have several different definitions, and everyone seems to have their own opinions on it. It is also interesting that the definition of an entrepreneur is still in debate today. Comparing the articles of these four authors, we are able to truly define an entrepreneur.

Hebert and Link's Definition

Hebert and Link identify twelve themes to define an entrepreneur, and also explain that these theories are both static and dynamic. However, they state that,

“Only dynamic theories of entrepreneurship have any significant operational meaning” (Hébert, R. F., & Link, A. N., 1989, p. 41).

This quote shows that Hebert and Link primarily categorize their definitions as dynamic. Hebert and Link’s twelve theories include,

“The entrepreneur is the person who assumes the risk associated with uncertainty, The entrepreneur is the person who supplies financial capital, The entrepreneur is an innovator, The entrepreneur is a decision maker, The entrepreneur is an industrial leader, The entrepreneur is a manager or superintendent, The entrepreneur is an organizer and coordinator of economic resources, The entrepreneur is the owner of an enterprise, The entrepreneur is an employer of factors of production, The entrepreneur is a contractor, The entrepreneur is an arbitrageur, The entrepreneur is an allocator of resources among alternative uses” (Hébert, R. F., & Link, A. N. ,1989, p. 41).

These twelve theories show actions of an entrepreneur, not necessarily the individual character traits or personality traits.

Throughout the article, other authors are included to support Hebert and Link’s definitions of an entrepreneur, although each of these authors use their personal points of view on entrepreneurship to develop a greater understanding and definition. One thing each of these authors agree on is that when entrepreneurs come across uncertainty the way they act upon uncertainty is different than a normal businessperson. It is stated in the article,

“Schumpeter’s theory, the dynamic entrepreneur is the person who innovates, who makes ‘new combinations’ in production” (Hébert, R. F., & Link, A. N., 1989, p. 44).

This quote is from one of the authors Hebert and Link used to support their theories. Overall, Hebert and Link, along with their supporters, define an entrepreneur as an individual who looks risk and uncertainty in the face and uses it as an opportunity to expand their business.

Sarasvathy's Definition

Sarasvathy uses effectual reasoning to define an entrepreneur. Sarasvathy (2006, p. 2) describes effectual reasoning as an individual who allows their goals to change over time based on the actions of the individuals they connect with. She also states,

“effectual thinkers are like explorers setting out on a voyages into uncharted waters” (Sarasvathy, 2006, p. 2).

This idea of effectual reasoning explains that the entrepreneur starts with something small and builds on it in order to achieve greatness. Sarasvathy (2006, p. 4) uses the example of an individual wanting to start a restaurant. She starts by delivering lunches to a few colleagues in hopes of gaining regular customers who get their lunch from her daily. Having these customers who she delivers lunch to will earn her money and hopefully those customers will want to eat at her restaurant. However, those customers enjoy her personality over her food, so she might have to change her business idea. This uncertainty of the individual and willingness to change defines her as an entrepreneur using effectual reasoning.

Furthermore, in Sarasvathy’s article (Sarasvathy, 2006, p.6) she uses the “Ready-fire-aim" analogy and turning the unexpected into profits aspect of effectual reasoning. Entrepreneurs do not spend a lot of time perfecting their business model before putting it out in the market because they do not want to miss any opportunities. Although it might bring difficulties, the entrepreneur will turn whatever comes their way into a positive outcome. In the end, entrepreneurs do not predict the future to succeed, they understand and work with individuals around them to create a way to earn profits in their business and change along the way to fit their customer's needs.

Gartner's Definition

Gartner uses the behavioral trait approach to define entrepreneurship and an entrepreneur. It is stated that,

“In the trait approach the entrepreneur is assumed to be a particular personality type, a fixed state of existence, a describable species that one might find a picture of in a field guide, and the point of much entrepreneurship research has been to enumerate a set of characteristics describing this entity known as the entrepreneur” (Gartner, 1988, p. 12).

This quote shows how an entrepreneur is classified based on their personality and characteristic traits. However, throughout the article, Gartner expresses that any individual could develop these traits and does not need to be born one. In the end, Gartner states that,

“The entrepreneur is not a fixed state of existence, rather entrepreneurship is a role that individuals undertake to create organizations” (Gartner, 1988, p. 28).

Creating a business takes an individual who will preserve through failures and turn them into opportunities. Gartner shows us that an entrepreneur can be anyone who puts their mind and effort into it.

Conclusion

To conclude, although there are different perspectives on what defines an entrepreneur and what entrepreneurship means, it all boils down to someone who is willing to put themselves at risk for a business opportunity. For the easiest definition, entrepreneurs are individuals who can persevere through failures and difficulties, and then turn each situation into something that will help their business succeed.