Individual does not have necessarily be a shareholder of the company to be regarded as an entrepreneur. On the other hand, person should not be considered as an entrepreneur if she/he does not innovate. For example; an owner of a book store is not an entrepreneur if she/he does not challenge the status-quo. She/he is an entrepreneur if she/he relentlessly search for new ways of doing business, marketing her/his product or introduce better processes into the organization.
Person who innovate is an entrepreneur.
Entrepreneur does not have to manage a business to be called as an entrepreneur. He/she can be an entrepreneur who manages an non-profit-organization or work in a government.
The single imperative to be an entrepreneur is to innovate.
The term entrepreneur may imply the following terms: Shareholder, Investor, Boss, Owner, Merchandiser, Trader, Founder and Innovator. All of these roles may be called an entrepreneur but they are indeed in a continuum of entrepreneurship. The following descriptions are listed from low-entreprenual activity to high-entreprenual activity:
- Shareholder/Investor: The person is in only in the investor role, do not participate in decision-making process.
- Boss/Owner: The person owns and runs a business but the business is not necessarily founded by her/him. She/he may be a second-generation
- Merchandiser/Trader: The person does not produce anything. She/he buys and sells.
- Founder: The person establishes a new company but does not innovate something new.
- Innovator: The person innovates. She/he brings new ideas, initiates new projects and new products. She/he does not need to be the owner or shareholder of the company. She/he can be an intrapreneur.