Final answer:
An entrepreneur is an individual who takes on financial risks in launching a new business, aiming for monetary success and market improvement. They must assess risks, organize resources, and choose an appropriate business structure. Successful entrepreneurs innovate the market with new or improved products and services.
Step-by-step explanation:
An entrepreneur is an individual who spots an opportunity for a new product or service and takes the initiative to launch a business in order to realize it. This entrepreneur is characterized by their willingness to take on risk and their drive to innovate in the marketplace. Being an effective entrepreneur involves carefully evaluating risks, organizing resources, and potentially bringing a new or improved product or service into the market.
Entrepreneurs are responsible for making decisions in the production process, combining the factors of production, and continually adapting to consumer demand. For example, Amazon and FedEx revolutionized the way we shop for and deliver products, respectively. Entrepreneurs aim to achieve monetary success and contribute to the market by introducing competition, which can lead to better quality products and lower prices for consumers.
When considering business structures, entrepreneurs must decide between options such as sole proprietorship, partnership, or corporation, each with its own implications for management, liability, and taxation.