What is an entrepreneur?

Anyone who starts and runs their own business is an entrepreneur.

The word ‘entrepreneur’ may make you think of risk-takers, business owners, or innovators. Perhaps highly connected people living in bustling cities come to mind. However, no gender, age, or location defines an entrepreneur.

Let’s discover what defines an entrepreneur, what entrepreneurship involves, and what makes a successful entrepreneur.

What is an entrepreneur?

According to the Cambridge Dictionary, an entrepreneur is “someone who starts their own business, especially when this involves seeing a new opportunity”.

People often consider entrepreneurs to be leaders who spotted a gap in the market and turned their idea into something tangible. This might mean launching a tech startup, opening a coffee shop, selling handmade goods online, or developing an app.

They don’t work for a company – they build one. And it can start small. A freelance graphic designer with a growing client list is an entrepreneur. So is someone who sells candles from their kitchen table and then opens a shop.

The word entrepreneur comes from the French word entreprendre, meaning ‘to undertake’. This perfectly describes entrepreneurs: they take the leap and get things going.

What is entrepreneurship?

Entrepreneurship is the process of building and growing a business. It covers everything from the first spark of an idea to planning, launching, running, and scaling a business.

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There are different types of entrepreneurship. Some entrepreneurs stay small and flexible, for example, running a one-person consultancy business or a local service. Others grow fast, raise money, and go global. Some build businesses with social or environmental goals, known as social enterprises.

All entrepreneurs have the drive to create something and the willingness to take risks.

In the UK, entrepreneurship is more popular than ever. According to the Federation of Small Businesses, there were 5.5 million small businesses in the UK in 2024. These represented 99.8% of the business population, and all started with people who decided to take the leap.

What traits make a successful entrepreneur? 

Think about Steven Bartlett, who built a multi-million-pound media company in his twenties or Grace Beverley, who turned her passion for fitness into thriving e-commerce businesses, TALA and Shreddy. Both started with ideas and ambition, backed up by hard work and smart decisions.

Here are five common traits successful entrepreneurs usually share:

1. Resilience

Setbacks are inevitable, but the ability to bounce back is key. From failed product launches to cashflow issues or big clients walking away, resilient entrepreneurs don’t throw in the towel. They learn from the experience and keep going. That mindset makes all the difference when things don’t go to plan.

2. Adaptability

The best entrepreneurs adjust quickly when things change. Markets shift, customer needs evolve, and new competitors crop up. Successful business owners must be willing to change their ideas or their whole business model if needed. Adaptability helps a business survive in the long run.

3. Passion

Entrepreneurs genuinely care about solving a problem or building something worthwhile. This passion keeps them going when things get tough, and it often shines through in how they run their businesses. Passionate entrepreneurs go the extra mile for their customers and continuously improve their products or services. If you’re looking for inspiration, discover how real entrepreneurs found their big ideas – you’ll see their journeys often started with a desire to make a meaningful impact.

4. Risk-taking

Successful entrepreneurs are willing to act without guaranteed success. Every business decision comes with some risk, particularly when you’re investing money or quitting your day job. Great entrepreneurs weigh up the pros and cons, then take calculated risks to move forward.

5. Financial awareness

Understanding money and planning ahead matters. Entrepreneurs don’t need to be accountants, but they do need to know what’s coming in, what’s going out, and whether they’re on track. A solid grip on budgeting, forecasting, and basic cash flow helps them make smarter decisions.

Can anyone become an entrepreneur?

There’s a common myth that people are born entrepreneurs. While some people naturally enjoy risk or thinking outside the box, entrepreneurial skills can be learned and built over time.

Many successful entrepreneurs started later in life or after switching careers. For example, Levi Roots was a musician for decades before starting his famous Reggae Reggae Sauce business. Others started with little money, experience, or support. However, they all had drive.

Now, it’s easier than ever to set up a business. You don’t need an office or a huge investment. Many businesses start from home with just a laptop and an internet connection. Plus, setting up a limited company takes a matter of minutes. Quality Company Formations handles everything online, with step-by-step guidance to make the process quick and stress-free. You’ll also be supported by our team of UK-based company formation experts.

How to become an entrepreneur

If you’re thinking about becoming an entrepreneur, here’s a simple checklist to get you started:

1. Identify a problem or gap in the market – what do people need that they’re not getting?
2. Test your idea – ask people whether they would buy it, or trial it on a small scale.
3. Make a plan – work out your costs, audience, pricing, and goals.
4. Register your business – forming a company is quick and easy online.
5. Launch, learn, and adapt – nobody gets everything right straight away.

Starting a business is not easy, but it’s possible with the right mindset, tools, and support.

Become an entrepreneur today

An entrepreneur takes action on an idea and builds a business around it, bringing the idea to life. Whether you want to start a side hustle, a fast-growing company, or something in between, you can start right now. 

Ready to take the first step? Quality Company Formations can help you form your company and reserve your business name today.

Leave a comment with your thoughts or questions, or check out our step-by-step guide on writing a business plan if you already have a vision and are ready to build it.