{"id":4339,"date":"2020-06-18T17:54:14","date_gmt":"2020-06-18T17:54:14","guid":{"rendered":"https:\/\/ownrblog-preprod.go-vip.net\/?p=4339"},"modified":"2026-04-06T15:02:06","modified_gmt":"2026-04-06T15:02:06","slug":"what-is-entrepreneurship","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/what-is-entrepreneurship\/","title":{"rendered":"What is Entrepreneurship? How to Become an Entrepreneur"},"content":{"rendered":"

With the rapid advancement of technology, an evolving work culture and increased access to capital for entrepreneurs of all types, entrepreneurship is an appealing career choice for many. There are currently upward of <\/span>582 million entrepreneurs<\/span><\/a> around the world, and according to a recent <\/span>2023 RBC poll<\/span><\/a>, a growing number of Canadians (predominantly Millennials and Gen Z) are turning to entrepreneurship as a means to advance their careers and gain greater control over their professional pursuits. In fact, 94 per cent of those surveyed report \u201cbeing one\u2019s own boss\u201d as their main incentive for doing so, and consider entrepreneurship a preferred alternative to the conventional nine-to-five work week.\u00a0<\/span><\/p>\r\n

From small businesses to international companies, entrepreneurship is essential for keeping Canada’s economy healthy and balanced. So, what exactly is an entrepreneur, and what are the steps to becoming one? Whether you’re interested in registering a sole proprietorship<\/a> or starting a new business<\/a> with multiple partners, understanding the fundamentals is crucial. What is the impact of entrepreneurship on society, and why is this role so important? We’ve created a comprehensive guide to entrepreneurship that outlines the skills, steps, and basic business resources required to become a successful entrepreneur and new business owner.<\/p>\r\n

What is the simple definition of entrepreneurship?<\/b><\/h2>\r\n

Simply put, entrepreneurship is the act of <\/span>starting a business<\/span><\/a> with the intention of turning a profit. However, the modern definition of entrepreneurship has expanded to include the act of transforming the world by solving large-scale problems. With the advent of the internet, entrepreneurship has the power to create social change through the creation of a service or product that affects individuals in positive ways and addresses social issues with innovative ideas.\u00a0<\/span><\/p>\r\n

Entrepreneurship is also an opportunity for self-motivated individuals to create their own career path and income by developing goods or services that people want or need. It\u2019s a risky approach to making a living, but it can result in incredible rewards and lasting success.<\/span><\/p>\r\n

What is an entrepreneur?<\/b><\/h2>\r\n

While there have been different discussions on the meaning of entrepreneurship, the general consensus is that it refers to an individual who starts a business with the goal of turning a profit. Entrepreneurs come up with an innovative idea for a good or service and package it to sell to consumers. Entrepreneurs also have the opportunity to enhance an existing product or service and sell it as a superior alternative to meet consumer needs.<\/span><\/p>\r\n

Some people fall into entrepreneurship accidentally when their <\/span>side hustle becomes a full-time gig<\/span><\/a>, such as a photographer who transitions from taking photos in their downtime to launching a full-fledged business. Others dive right into entrepreneurship as their primary source of income, such as the owner of an independent retail store or online marketplace.\u00a0<\/span><\/p>\r\n

Regardless of how one becomes an entrepreneur, they are an integral part of our economy and society. Without new startup companies and business founders, the majority of innovative products and services we rely on today wouldn\u2019t exist.<\/span><\/p>\r\n

What are the 4 types of entrepreneurship?<\/b><\/h2>\r\n

While there are many different ways to describe entrepreneurship, your business will likely fit into one of these four main categories.<\/span><\/p>\r\n

1. Small business<\/b><\/h3>\r\n

A small business is typically characterized as having a limited number of employees with a niche area of focus. The business owner is also more likely to handle more of the day-to-day operations, including hiring employees. The goal of most small businesses is to turn a profit with an innovative idea that addresses a market demand. Many founders fund their own businesses or rely on <\/span>small business grants<\/span><\/a>, loans, or crowdfunding.<\/span><\/p>\r\n

2. Scalable startup<\/b><\/h3>\r\n

A scalable startup is a business model that begins with an innovative idea and seeks to expand on a large scale at a rapid pace with big profit returns. These startups are typically designed to attract high-value investments from venture capitalists and are often tech-focused. One great example is Uber, a company that was able to scale up successfully by being technology-driven and expanding globally. In other words: given the right <\/span>funding<\/span><\/a>, these startups aim to create business models that can be easily duplicated and scaled.<\/span><\/p>\r\n

3. Large company<\/b><\/h3>\r\n

Large companies with an entrepreneurial backbone may regularly introduce new products or services that complement their main roster of offerings. This enables them to stay up-to-date with the evolving technological landscape and compete effectively within their market niche<\/a>. Major enterprises may also attempt to reach new markets by acquiring smaller companies with an existing customer base.<\/span><\/p>\r\n

4. Social entrepreneurship<\/b><\/h3>\r\n

Social entrepreneurship refers to a business that is focused on having a significant social or environmental impact with a desire to make the world a better place. While traditional business models are profit driven, social entrepreneurship puts the focus on creating social change, which can be considered as important as financial gain. A social entrepreneurship business can be a non-profit, for profit, or a hybrid of the two.<\/span><\/p>\r\n

Why become an entrepreneur?<\/b><\/h2>\r\n

If you feel stuck in your current job and are looking to make a major career change, then becoming an entrepreneur might appeal to you. Or you might have a compelling idea that you\u2019re eager to transform into a sustainable business. There are many perks to starting your own business, including:<\/span><\/p>\r\n

Becoming your own boss<\/b><\/h3>\r\n

You may find entrepreneurship appealing because it gives you the ability to turn a profit on your own terms for a business that you believe in. Maybe you’re tired of working for others and want to strike out on your own, or you’re struggling to find employment. For those who decide to take the plunge, a crucial early decision is determining the right legal structure. Many experts recommend you incorporate your business<\/a> to protect your personal assets and establish credibility with customers and investors. This step is especially important for self-motivated individuals with original ideas who are drawn to entrepreneurship because they prefer to be independent when it comes to earning a living.<\/p>\r\n

Creating a new product or service<\/b><\/h3>\r\n

Becoming an entrepreneur affords you the opportunity to build a product or service from the ground up, transforming an innovative idea into a viable business. In other words, you have the ability to create something new and bring it to market. However, starting your own business is not an easy endeavor and it comes with its own set of risks. See our guide on the <\/span>top sole proprietorship advantages and disadvantages in 2023<\/span><\/a>.<\/span><\/p>\r\n

Building your own schedule and working from anywhere<\/b><\/h3>\r\n

Many entrepreneurs are drawn to a lifestyle with flexible hours, which can help achieve more work-life balance. Keep in mind that many entrepreneurs end up investing more hours in the beginning to get their business off the ground, but this may be worth it in the long-term. Being an entrepreneur typically also means creating your own schedule, with the ability to work from home or overseas as often as you see fit.<\/span><\/p>\r\n

What are the characteristics and key skills of an entrepreneur?<\/b><\/h2>\r\n

Though there are various methods on how to become an entrepreneur, many successful business owners tend to share a few key characteristics. These traits are often what contribute to their overall success in growing their company. If you possess some of these key skills, you might just have what it takes to become an entrepreneur.<\/span><\/p>\r\n

Entrepreneurs are innovative<\/b><\/h3>\r\n

Often, the terms \u201centrepreneur\u201d and \u201cinnovator\u201d are used interchangeably. The definition of \u201cinnovative\u201d is \u201coriginal and creative thinking,\u201d with an innovator being someone who introduces new and novel ideas into the marketplace. Entrepreneurs are innovative in how they apply creative thinking to a specific issue, and then create a new product or service as a solution to that problem.<\/span><\/p>\r\n

Entrepreneurs aren\u2019t afraid of failure<\/b><\/h3>\r\n

Because entrepreneurship involves risk and there are no guarantees of success, entrepreneurs need to be resilient and persistent. Many successful entrepreneurs have had to fail and persevere through many challenges to get to where they are today. While many small companies don\u2019t survive their first year of operation, entrepreneurs should also be open to failure and use it as an opportunity to grow.\u00a0<\/span><\/p>\r\n

As <\/span>Jolijt Tamanaha<\/span><\/a>, Director of Marketing and Finance of Fresh Prints, says, \u201cEntrepreneurs make their way down a never-ending list of problems with grit, passion, and energy. While intense, being an entrepreneur means you get to live life learning an incredible amount and maximize your impact on the world because you have to tackle the hardest problems.\u201d<\/span><\/p>\r\n

Entrepreneurs adapt and evolve<\/b><\/h3>\r\n

To be successful, entrepreneurs must be able to adapt to changes in the marketplace. This is an important characteristic, as it helps business owners respond to the ever- changing needs of their consumer. Companies should constantly tweak their business models to align with market demands and ensure they aren\u2019t lagging behind their competition. Entrepreneurs must become experts at pivoting and evolving their business models in order to expand and increase their impact.<\/span><\/p>\r\n

For example, a business may adjust an existing product to make it more environmentally friendly based on previous user concerns. Another company might add more relevant features to a tech device so it will stand out against competitors. Or an entrepreneur may completely change their service offerings to better respond to the needs of their customer base and to help grow their audience.<\/span><\/p>\r\n

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According to James Sandoval, Founder and CEO of <\/span>Measure Match, \u201cBeing an entrepreneur means diving headlong into a likely very risky venture of your own making, working long hours, often alone, to carve out a path to success and never, ever giving up.\u201d<\/span><\/p>\r\n<\/blockquote>\r\n

How to become an entrepreneur<\/b><\/h2>\r\n

So now the big question: what are the key steps to becoming an entrepreneur? While the average path for every aspiring business owner will look different (as it will depend on several factors including personal goals, level of risk tolerance and field of expertise) here is a basic rubric for how an individual can become an entrepreneur.\u00a0<\/span><\/p>\r\n

1. Ensure financial stability<\/b><\/h3>\r\n

As mentioned briefly above, venturing into entrepreneurship involves a certain level of risk tolerance. If you have a promising business idea, it\u2019s important to first establish the financial resources at your disposal: are you able to access <\/span>venture capital funding<\/span><\/a>? Can you apply for a <\/span>small business grant<\/span><\/a>? Should you explore <\/span>crowdfunding<\/span><\/a>?\u00a0<\/span><\/p>\r\n

You may also need to dip into your personal savings to fund your company. If this is the case, keep in mind that there is a high level of financial risk when launching your own business, so it\u2019s important to ensure you\u2019re in a stable financial position before you embark on an entrepreneurial pursuit.\u00a0<\/span><\/p>\r\n

Aim to put together an adequate cash supply to cover your business expenses for at least the first year. This could also mean creating a comprehensive budget plan, ensuring you have separate bank accounts for personal and business costs, and contributing to a contingency fund to cover unexpected expenses.<\/span><\/p>\r\n

Being financially stable before you jump into entrepreneurship will ultimately give you more flexibility to build your business over the long term. Another benefit is being free from debt or overhead expenses from the outset. If you do have debt, try to minimize it as much as possible before you start your business. In the beginning, employ yourself to keep your overhead costs down, and as your business expands, only hire employees when your company is financially stable.<\/span><\/p>\r\n

2. Cultivate a diverse skill set<\/b><\/h3>\r\n

Business entrepreneurship is not a linear path. It requires continuous learning and challenging the status quo. In other words: the most successful entrepreneurs are visionaries who are innovative and forward-thinking. It also means being inquisitive and challenging industry norms. This is why continuous education is integral for any aspiring business person.<\/span><\/p>\r\n

Begin by creating a list of your current skills and identifying any gaps. Then, think about how you can learn more about the skills you might need to develop further. This could mean enrolling in regular online courses to deepen a relevant skill set, attending industry conferences, or staying up-to-date with technological advancements.\u00a0<\/span><\/p>\r\n

For example, maybe you have a strong sales background, but lack bookkeeping experience so you sign up for courses online or within your community. Or perhaps you have strong interpersonal skills, but struggle with using social media to promote your business. A quick search will find you a great number of online resources with tips and guides to get you on the right track.<\/span><\/p>\r\n

Cultivating a diverse set of skills will afford you the ability to better problem solve in the day-to-day operations of your business, and enable you to become more self-reliant. As the expression goes, \u201cif you\u2019re not moving forward, you\u2019re falling behind.\u201d<\/span><\/p>\r\n

3. Do your research<\/b><\/h3>\r\n

Before you leap into a new career, take some time to research existing small businesses and learn more about what entrepreneurship is all about. Read <\/span>business books<\/span><\/a> and blogs about entrepreneurship, listen to podcasts, and follow inspiring founders on social media. You may want to focus your research on the specific industry that your new business idea would fall under (taking a look at what\u2019s already available and the competitors within that industry). Or, if your business will be woman-led, read up on other <\/span>inspiring female entrepreneurs<\/span><\/a>.\u00a0<\/span><\/p>\r\n

Consume as much information as you can so you are aware of what works and what doesn\u2019t. Information is power, and luckily there are many <\/span>free resources<\/span><\/a> you can use to start your business.\u00a0<\/span><\/p>\r\n

4. Identify a problem to solve<\/b><\/h3>\r\n

Every worthwhile venture begins with a compelling business idea. So if you\u2019re wondering how to become an entrepreneur, ensure you\u2019ve identified a promising business opportunity. This often stems from pinpointing a problem that needs solving (or improving) within a specific industry niche.\u00a0<\/span><\/p>\r\n

Determine which problem you are most passionate about solving, and why. The \u201cwhy\u201d will keep you motivated on your entrepreneurship journey and act as a reminder of who (or what) you’re dedicating your work towards. If you\u2019re stuck on this step, h<\/span>ere are a few key questions to hopefully inspire you:<\/span><\/p>\r\n