Entrepreneur: What is an entrepreneur ?

Entrepreneur: What is an entrepreneur ?

An entrepreneur is someone who sets up a new business on their own, as opposed to an employee who works for other people. Entrepreneurs play a key role in any economy, using their skills to anticipate needs and bring new ideas to market. More than a profession, entrepreneurship is often the result of many personal motivations, even if the activity is not without risk.

What about you? Are you ready to take the plunge? We're giving you the opportunity to do just that with our Master of Science Innovation & Entrepreneurship.

How do you define an entrepreneur ?

An entrepreneur is generally a person who creates a new business, plays an active role in its operations, assumes most of the financial risks and benefits from most of its success. The process of creating a new business is known as entrepreneurship, and is often motivated by the commercialization of new product or service ideas.

The entrepreneur should not be confused with the company director, as the latter is an employee who is legally dependent on his or her company. On the contrary, the entrepreneur is independent and responsible for his actions, and organizes his work as he sees fit.

The idea of the entrepreneur continues to evolve and develop: the entrepreneur can be the founder of a start-up, a freelancer or the owner of a company.

An entrepreneur develops his or her business by assembling the financial, physical and human resources needed to run it smoothly. Risk management is an inseparable part of entrepreneurship, since the entrepreneur usually invests his or her own funds, and is financially responsible for the company's actions.

What is the role of an entrepreneur ?

The role of the entrepreneur is first and foremost to organize the resources needed to commercialize a product or service and develop the business. This may involve launching an innovative new product that meets a market need, creating an improved and expanded service, or marketing an existing product that is better and cheaper than the competition.

Right from the start of a business, the entrepreneur must allocate responsibilities effectively. Hiring qualified and competent staff requires a great deal of care, especially for small businesses. An entrepreneur is also responsible for organizing a business environment that helps each employee maximize his or her potential.

The entrepreneur must be able to anticipate changes in his or her business by taking on numerous challenges. They have to make important decisions, especially when their business is new and they don't yet have a very precise knowledge of their market. These may involve, for example, reducing or increasing inventory, acquiring equipment or seeking new financing.

It is also essential to be able to seize every opportunity likely to develop or stimulate the company's sales. The entrepreneur must be able to identify products or services to be improved, and new markets to be conquered. The entrepreneur must listen to his customers and prospects to identify needs to be satisfied.

How much does a contractor earn ?

There are as many entrepreneurs as there are companies, and each case is of course different. Most entrepreneurs do not pay themselves a salary, but remuneration: depending on the status of the company (sole proprietorship, SARL, EURL...), the manager may be considered a non-salaried manager or a salaried employee. The average income of a self-employed entrepreneur is 9,000 euros a year, while Bernard Arnault, entrepreneur and CEO of the LVMH group, is the third richest man in the world, with an estimated fortune of 153 billion euros!

The average income for an entrepreneur in France is around 52,000 euros a year, again with wide variations depending on the business sector. The figure is 2,000 euros in the transport sector, 3,500 euros in wholesale trade and 6,100 euros in financial and insurance activities.

What are the steps to becoming an entrepreneur ?

You're definitely not up for the office life route, and the idea of becoming your own boss is starting to take hold?

Taking things one step at a time is the best way to make it happen.

• Step 1: Find the right idea

Entrepreneurship is a broad term, and you can be an entrepreneur in just about any sector. It all starts with an idea, and yours has to be good enough to motivate you without ever making you want to give up. Draw up your business plan by carefully studying your market, the goals you want to achieve and the means to get there.

• Step 2: Build your network

Don't hesitate to ask for help from other professionals or mentors. Taking the time to network and establish new relationships can give you a serious competitive edge. You should also take the time to find out about potential investors and the funding and subsidies to which you may be entitled as part of your business start-up.

• Stage 3: Achieving financial stability

Although it is always possible to obtain additional capital, it is advisable to start with sufficient start-up capital before releasing it, as the first profits often don't arrive for two or three years. If necessary, don't hesitate to enlist the help of financial and management experts to help you secure your profitability.

• Step 4: Stay motivated

Never forget why you decided to take the plunge. Stay focused on what made you want to go ahead in the first place, the so-called "why". Turn your "why" into a vision and make it the mission of your company, both for you and for the people who work with you. There's nothing more motivating than knowing why you're motivated!

Would you like to give your business start-up project the best chance of success by mastering the fundamentals of management and maximizing your entrepreneurial potential? Join our training program Master of Science Innovation & Entrepreneurship.