entrepreneur

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Entrepreneur

A person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs.

Entrepreneur

The possessor or owner of a for-profit organization. The term is usually applied to small business owners, who bear the majority of the risk and reap the most benefit from a company. It can also relate to (individual) majority shareholders who are involved in the operation of his/her business. Entrepreneurs are generally accepted as integral to the success of a capitalist system.

entrepreneur

A risk-taker who has the skills and initiative to establish a business.

entrepreneur

a person who undertakes the risks of establishing and running a new business. Entrepreneurs are characterized by their initiative and enterprise in seeking out new business opportunities; inventing and commercializing new goods and services and methods of production. See VENTURE CAPITAL, INDUSTRIAL POLICY, INTRAPRENEURIAL GROUP, MANAGEMENT BUYOUT.

entrepreneur

an individual who assembles and organizes FACTORS OF PRODUCTION to undertake a venture with a view to PROFIT. The individual may supply one or more of the three factors of production (NATURAL RESOURCES, LABOUR, CAPITAL) himself or may hire or buy any or all factors in the expectation of future profits. The entrepreneurial function is sometimes called a . fourth factor of production.

The entrepreneur was seen in the 19th century as an individual proprietor who supplied most or all of the factors of production but especially managerial expertise. The advent of the JOINT-STOCK COMPANY led to the division of management and the supply of capital, so that the term ‘entrepreneur’ became a more hypothetical abstract term attached to any individual or group who performs the risk-bearing and organizing functions above. The traditional THEORY OF THE FIRM suggests that entrepreneurs attempt to maximize profit, but since the 1930s there has been growing awareness that the DIVORCE OF OWNERSHIP FROM CONTROL in large joint-stock companies influences the behavioural attitudes of groups of individuals within organizations, which may lead to corporations following objectives other than PROFIT MAXIMIZATION. See BEHAVIOURAL THEORY OF THE FIRM, MANAGERIAL THEORIES OF THE FIRM, RISK AND UNCERTAINTY.

entrepreneur

One who assumes risk in order to combine knowledge, capital, and resources to create a venture that will hopefully return a profit.

References in periodicals archive ?
Research also shows that 40 per cent of startups were created by sole founders; up to 79 per cent were either sole or two founders which is higher than international comparisons where 69 per cent are made up of teams of two or three founders, and in MENA, 12 per cent of successful founders are female in comparison to 15 per cent in the EU and 17 per cent in the US
Vinod Khosla, Founder, Khosla Ventures; Co-Founder, SUN Microsystems
They estimate that the value at stake in a typical start-up is approximately 10 percent of the firm equity, 25 percent of the average founder stake, or $450K in net present value.
Frohring, consultant & founder, Mini-jector Machinery Corp.
Paola Elisabetta Cerioli (1816-1865), founder of the Institute of the Holy Family and of the Congregation of the Holy Family (Zenit, February 19, 2004).
Jones was founder and CEO of Colossal Graphics Inc.
Unless a founder has set up a viable equity structure, leaving can present serious problems for the company.
The merits of this action include an orderly and legally painless transfer of ownership upon the death of the founder of the company.
Eventually, the founder asked him to head a new development division and hired a seasoned manager to oversee product development and technology refinement.