Entrepreneur Definition
Many people are looking for a valid entrepreneur definition, but the very term “entrepreneur” is being challenged by the “bully” of the entrepreneurial world–Entrepreneur Media, Inc. (EMI), publishers of Entrepreneur magazine. EMI is one of the largest resources of information for entrepreneurs around the world…as long as you don’t use the word ENTREPRENEUR in your business. It seems that EMI owns the U.S. trademark on the word “entrepreneur.” Yup, even though the word is 100′s of years old, commonly used, and derived from the French–EMI holds the trademark. Worse yet, they vigorously defend their trademark as evidenced by just a few of their threats and prosecutions, as follows:
EMI goes after a broad spectrum of businesses with the help of Latham & Watkins, a 2,000 attorney corporate law firm with 31 offices around the world. No one is spared, from the one-person website business, to Universities and non-profit organizations, as well as large businesses. There is no tally available, but EMI has sued, or threatened to sue scores of businesses and organizations since the early 1980′s.
Interestingly, the founder of Entrepreneur magazine, John Leonard Burke (aka Chase Revel), was a convicted felon (attempted bank robbery) who also, sometime later, had notes delivered to bank tellers saying their children had been kidnapped and to leave canvas bags of money for him, and the children would be returned. Actually, he did not kidnap the children, nor did he receive any money. However, attempted extortion still carries a penalty.
After his release from prison he started Entrepreneur and then registered the trademark “entrepreneur” in 1979. He eventually sold his enterprise to the current owners in the late 1980′s…and continued to have brushes with the law.
The irony I see in this whole issue of entrepreneur definition is the fact that the people who are at the forefront of promoting entrepreneurship (EMI & Entrepreneur) are the very people who are running roughshod over the entrepreneurs who use the word “entrepreneur” in the definition or promotion of their business. So be very careful how you use the word “entrepreneur” in your business
It also makes me question whether I will ever recommend any product or activity sponsored by EMI or Entrepreneur magazine in the future. I think I will distance myself from this enterprise from here on.
What do you think?
Note: This post is an excerpt taken from an article in Businessweek, (May 23-May29, 2011) authored by Paul M. Barrett.
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Watch Out–The Sky is Falling!
While the political pundits, news anchors, and morning show hosts are acting like “Chicken Little,” the rest of us have to deal with the realities of the day. How do we keep our businesses viable? What will happen to the growth we were experiencing, or counting on to pay our debts? Where will our startups get the money to start up?
The news people seem to be ecstatic when there is panic in the streets. In our society, bad news always sells better than good news. How terribly sad.
Maybe I’m jaded because I have always dealt with businesses that had problems…sometimes life-threatening problems. Some companies I became responsible for couldn’t borrow a penny, initially, and the Sheriff was usually not far away waiting to close us down. We could hardly call it a “credit crunch” when there was zero credit available to us. Interestingly, in these cases, we not only survived, but we thrived—it can be done.
So, we need to quit wringing our hands and get used to it…times are going to be tight for a while. Businesses that are not financially strong, or do not have a good relationship with their local banker, might have to change the way they do business…or perish.
Entrepreneurs who are looking for a truckload of cash to start their business may have to go back to the drawing board with their business plans, or maybe postpone their start up. But, remember, it’s “business,” not the end of the world. If an entrepreneur cannot handle setbacks in their business, they probably should not be in business in the first place. Stuff happens…terrible challenges face most entrepreneurs at some point—think about the hundreds of businesses in New Orleans that were impacted by Katrina.
The good news is that we are entrepreneurs, and, as a group, there is nothing we cannot face and still come out stronger than before. We have the creativity, innovation, drive and determination—plus old-fashioned guts, to see our businesses through any kind of challenge.
Yes, times are tough and we will have to roll up our sleeves and get to work, but there is no way that either Wall Street or Washington DC is going to get the best of us. I certainly don’t have all the answers, but I do have experience in this arena and I hope to share what I can with others of you who may be facing serious difficulties in the coming days.
By the Way, What is an Entrepreneur?
There has been quite a bit of chatter on the Internet lately about Michael Gerber’s book, The E-Myth Revisited. In his book, Gerber proclaims that unless you have employees, you are NOT an entrepreneur. Without hiring employees, you are merely a “technician” doing what you always did. He goes on to say, “The purpose of going into business is to get free of a job so you can create jobs for other people.” This should come as shocking news to the 21.1 million non-employee businesses (70% of the total) in the U.S. (not to mention the world).
No, I do not believe Gerber’s premise for a second. Dozens of blogs and web sites offer definitions of what an entrepreneur is. There are also multiple dictionaries with definitions of the title, entrepreneur. They all say pretty much the same thing. Here is a compilation of those definitions:
An entrepreneur is a person who organizes and operates a business, usually with considerable initiative, while taking on greater than normal financial risks in order to do so.
Michael offers a very good approach for growing a business by hiring employees, but I think he does a real disservice to the majority of small business owners who do not want to take on employees, or do not intend to grow beyond a certain point. These are the same businesses that pump a trillion dollars a year into the United States GDP. I can’t imagine what the world contribution is.
Being an entrepreneur is hard work and takes a lot of time, passion, money, and intestinal fortitude to become a successful businessperson. I believe every shop owner; every market vendor, every home-based business owner, and every non-employee business owner in the world fulfills the above definition and deserves to be called “Entrepreneur.”
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