Entrepreneurship is a product of a free enterprise system, where individuals with innovative ideas can seek capital to bring those ideas to market. Successful entrepreneurs have the potential to transform industries and improve everyday life. However, achieving that success requires a specific set of skills.

One example of entrepreneurial spirit is the story of Sarah E. Goode, who received a U.S. patent in 1885 for her folding cabinet bed design. Her invention, a precursor to the Murphy bed, offered a practical solution for customers of her family’s furniture store in Chicago, many of whom lived in small apartments.

Goode’s success shows how an entrepreneur with a clear vision and strong business instincts can lead to a lasting impact. As a global economic driver, entrepreneurship promotes product innovation and wealth creation. It brings prosperity through job creation and economic growth, while also opening entirely new markets for goods and services.

What Is Entrepreneurship?

The word “entrepreneur” is derived from the French word “entreprendre,” meaning “to undertake.” In this context, “undertake” refers to assuming the risk involved in bringing a new idea to market. This definition highlights one of the most important characteristics of an entrepreneur: risk tolerance. Many business professionals are risk-averse and choose to build careers within existing organizations and industries. Yet, in many cases, those organizations were founded by entrepreneurs.

Why Is Entrepreneurship Important?

Entrepreneurship is important because successful ventures often lead to economic growth. Over time, a successful entrepreneur can build wealth that is passed down through generations, creating lasting value. This, in turn, opens pathways of opportunity for enterprising individuals from all backgrounds.

Different Types of Entrepreneurship

There are different types of entrepreneurship, each suited to different goals and markets. Each type has distinct characteristics and serves a unique purpose within the broader economy. 

• Small Business Entrepreneurship: This is the most common form of entrepreneurship and typically involves businesses with fewer than 500 employees. These ventures are often deeply rooted in their communities, serving local needs and preferences.
• Start-Up Entrepreneurship: Start-ups are built to scale quickly and disrupt existing industries. They often rely on innovation and technology to drive growth. A well-known example is the rise of social networking platforms. 
• Social Entrepreneurship: Driven by purpose and profit, social entrepreneurship ties its mission to a social cause. As younger generations increasingly support businesses aligned with their values, this model has gained momentum in the marketplace.

Regardless of the scale or type of business an entrepreneur chooses to pursue, there are many skills necessary to ensure that an enterprise is a success. 

What Are the Skills Necessary to Become an Entrepreneur?

Like any career path, entrepreneurship requires a particular set of skills to succeed. These entrepreneurial skills are different from those typically needed to climb the corporate ladder. 

To find success in entrepreneurship, consider building these professional skills:

• Critical thinking 
• Business management
• Product design
• Financial management
• Brand marketing
• Problem-solving
• Leadership

Developing these key entrepreneurial skills lays a strong foundation for success. However, despite thorough preparation, entrepreneurship always involves inherent risks.

How to Become an Entrepreneur

Success in entrepreneurship requires more than just a great idea. You must also be able to coordinate labor, capital and resources to bring a product or service to market. The product or service must solve a problem or provide clear value to consumers to succeed. While success can take many forms, it is built on a foundation of education and experience. The first step toward achieving this success is to educate yourself about the particular industry or market you wish to enter.

A successful entrepreneur:

• Identifies an opportunity
• Secures capital to finance their business plan
• Puts together a team of professionals
• Creates an innovative product or service
• Uses resources efficiently to generate profits
• Makes an impact on their target audience
• Transforms the marketplace with its innovative offering
• Promotes brand loyalty to sustain success and market share

Many colleges and universities offer entrepreneurship programs for students who are interested in pursuing a career in entrepreneurship.

• Columbia Business School offers students various entrepreneurship and competitiveness programs.
• Howard University offers a BBA in Management with a concentration in Entrepreneurship
• Babson College offers undergraduate and graduate degrees in Entrepreneurial Leadership. 
• University of Michigan’s Zell Lurie Institute for Entrepreneurship offers entrepreneurship resources to its students and alumni.
• USC’s Marshall School of Business offers various degrees in entrepreneurship studies.

While education and preparation are important, entrepreneurship offers no guarantees. However, if you see an opportunity in the marketplace and want to shift your career from labor to capital, entrepreneurship might be the right path for you.

In this fireside chat with Harold L. Martin Sr., Ph.D., Chancellor of North Carolina Agricultural and Technical State University, Smith shared the story behind his career pivot. His experience can offer insight into how you can do the same with your career: