Module 1, Video 1: What is Entrepreneurship

Transcript
What is entrepreneurship? In this video, we will define entrepreneurship and other related vocabulary and
concepts. We will also compare entrepreneurs and small business owners and look at how they are similar, the
same, and how they are different, not the same. Let's get started.

Entrepreneurship is the making of a new business. A new business can be a startup, which is a business that did
not exist before. Or a new business can be an old business that has changed so that it can be more successful. An
example of changing a business could be buying a restaurant and changing the menu. Therefore, entrepreneurship
is the making of a new business through creating a startup or buying and changing an existing business.

An entrepreneur is a person who takes an idea and turns it into a successful new business that is expected to grow.
Entrepreneurs share some common business skills. First, they are very good at finding the right idea that has the
potential to succeed and grow. In other words, finding the right opportunity. Second, entrepreneurs are very good
at identifying needed resources like materials, people, and money, as well as potential customers. They're also
very good at making a plan, and getting support, such as attracting employees and investors.

Finally, entrepreneurs are very good at implementing the plan and pursuing growth. This means, they are good at
doing what the plan says and at looking for ways to increase the size of the business over time. As we discussed in
our definition of entrepreneurship, entrepreneurs often begin with a startup. But may also buy an existing
business and change it.

Entrepreneurs also share other management styles. For example, they are efficient at starting a business and
making plans for growth, but they may not be efficient at managing day-to-day operations. Let's pause and talk
about that term. Day-to-day is an adjective, that describes things that happen on a daily basis. Operations is a
noun, that describes activities that happen as part of running a business. Day-to-day operations therefore are
activities that happen on a daily basis to keep a business running. Like making products and selling them to
customers.

So, entrepreneurs may not be efficient at managing day to day operations. Entrepreneurs often sell
a startup or a new business once it grows to a certain size and may own many businesses at the same time.

Lastly, entrepreneurs often own many businesses over their careers. Entrepreneurs and small business owners,
share many skills and styles. But they are not the same. A small business owner is a person who owns and manages
a small business and is responsible for day to day operations. Just like entrepreneurs, small business owners are
very good at finding the right idea that has the potential to succeed, identifying needed resources, and potential
customers. Making a plan, getting support, and implementing a plan.

Small business owners are also good at maintaining success. Which means they want their business to stay small
and do not pursue growth like entrepreneurs. Small business owners often begin with a startup. But may also buy
an existing business that they may or may not change. Unlike entrepreneurs, a small business owner efficiently
manages day to day operations, and often owns the business for a long time. This is because a small business
owner is often more focused on stability. Keeping the business stable or safe than on growth. A small business
owner also often owns only one business at a time and may own that on business for his or her entire life. Some
small business owners start as entrepreneurs. But then they decide that they enjoy managing day-to-day
operations more than looking for growth.

© 2022 by FHI 360. What is Entrepreneurship Transcript for the Online Professional English Network (OPEN),
sponsored by the U.S. Department of State with funding provided by the U.S. government and administered
by FHI 360. This work is an adaptation of What is Entrepreneurship by University of Pennsylvania licensed
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license, visit https://creativecommons.org/licenses/by-sa/2.0/
Entrepreneurs and small business owners are both important to economic development. They share many of the
same skills, but they are not the same. In unit one, we will learn more about business, entrepreneurship, and
startups. Including the role of risk and failure.