Enterprise

Abstract

Of all factors of production the entrepreneur is the most difficult to define. It is usually argued that the entrepreneur is the individual who bears the uninsurable risks of production. In this sense the entrepreneur is regarded as a true capitalist, that is, one who risks his or her funds in the pursuit of profit from some productive activity. However, the entrepreneur is also regarded as an organiser and a decision-taker. In this sense the entrepreneur’s role is to decide what the factors of production will produce, how they will be combined, how the product will be marketed and so on. The entrepreneur might also be an innovator who recognises an opportunity for profit from the inventions of others.