The Role of the Entrepreneur

THE ROLE OF THE ENTREPRENEUR

1. What must an entrepreneur do to earn a profit?

An entrepreneur is a person that creates, organizes and manages a business while trying to make a profit. The first thing an entrepreneur needs to do is to think of an idea. They have to be inquirers so they can gather as much information as possible. They need to constantly reflect on their decisions. Profits aren’t everything, they’re the only thing. To be a successful entrepreneur one must decide to make the total commitment to run over anyone or anything that gets in the way of your company’s paramount need for profits. Making a real profit takes unwavering dedication to your business. It all boils down to how hard you work and how smart you work in good and bad situations. They must be risk-takers because there is always a chance that their business will not succeed. They must be open-minded when presenting their ideas and receiving feedback. Entrepreneurs must be good communicators when sharing their ideas with investors and when advertising and promoting their company. Entrepreneurs must be knowledgeable about business law. For example, they may want to apply for a patent. They must also be principled and caring towards their employees and customers.

2. How do the actions of firms earning profits influence the value of resources?

Traditionally, economists and financiers have argued that the sole purpose of business is to make money, the more the better. That conveniently narrow image, deeply embedded in the American capitalist system, molds the actions of most corporations, constraining them to focus on maximizing short-term profits and delivering returns to shareholders. Their decisions are expressed in financial terms. Institutional logic holds that companies are more than instruments for generating money; they are also vehicles for accomplishing societal purposes and for

THE ROLE OF THE ENTREPRENEUR

providing meaningful livelihoods for those who work in them. According...