What is an entrepreneur?
The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur.
The word entrepreneur originates from the French word, entreprendre, which means "to undertake." In a business context, it means to start a business. The Merriam-Webster Dictionary presents the definition of an entrepreneur as one who organizes, manages, and assumes the risks of a business or enterprise.
The planned exit of an owner from their business, using at least one of three primary methods for entrepreneurs to leave the businesses they founded: selling, merging and closing.
A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital.
Money borrowed as unsecured loans, or contributed by smaller stockholders (shareholders). Equated with its abbreviation's homonym (opium) in its narcotic power on people who forget it is an obligation that must be accounted for, and repaid in some way.
The potential for a business or an aspect of a business to continue to function effectively as its size increases.
Second-stage companies are those that have grown past the startup stage but have not grown to maturity. They have enough employees to exceed the comfortable control span of one owner/CEO and benefit from adding professional managers, but they do not yet have a full-scale professional management team. A business typically begins to enter its second stage when it approaches $1 million in total receipts.
The period of a company’s life when it is experiencing the second stage—larger than a start-up but not having reached its ultimate potential. See Second Stage Company.
(Source: Breakthru Center)
While any new company could be considered a start-up, the description is usually applied to aggressive young companies that are actively courting private financing from venture capitalists, including wealthy individuals and investment companies. In many cases, the start-ups plan to use the cash infusion to prepare for an initial public offering.
Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.