Which came first, the chicken or the egg?
That’s easy, First, there had to be a market. Without a market, no matter how good the idea, how well capitalized the enterprise, how competent the management team, or how skilled the workforce; there can be no business.
So, where do markets come from? Markets seem to come in three forms. They may be found in plain sight, they may be hidden in a forest of commerce, or they may be foreseen and realized only by people of exceptional vision. All three forms are available in a wide range of sizes.
Existing businesses, facing things like changing taste, obsolescence, … are obliged to always be looking for ways to expand their share of an existing market or for different markets to enter, and to always be on the lookout for new markets.
Entities and individuals considering starting a business might have a plan for capturing a share of an existing market, think that they have spotted a market not being well served, or have a new product idea that they believe will create a market.
So, how does this search for markets go down? Who are the diviners? A well-capitalized start-up will do market research; have a formal market survey done by professionals. Market Research is a highly developed science. The report will probably be highly confidential, provide great detail, and get really close to getting it all right. A Mom and Pop start-up may be more of the snoop, pry, and mostly dream type of survey. We see the Well-Heeled, the Mom and Pop, and everything between.
What do we call these entities and individuals, and everything between, that start up a business? If they start up another Mom and Pop Pizza Shop; maybe Pizza Shop Opener? Or foolish? Round Table Pizza Restaurant; Franchisee. What if they start up a business that no one had ever heard of before? One that will provide lots of new jobs and save the Nation’s economy?
What’s that sound? It’s a bird! It’s a plane! It’s an Entrepreneur! The Nightly News Readers on Cable TV casually toss off the word while affecting their knowledgeable airs. High School Business Academy Teachers always speak the word with a little excitement in their voices. Entrepreneur — a french word loosely translated — describing either a contractor or someone who undertakes doing something, or both…
Webster says: one who organizes, manages, and assumes the risks of a business or enterprise.
… a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. … is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome.
And, yes, the two are not the same.
… Or, … Jean Baptiste Say said, “one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour.” Or, … choose a level of personal, professional or financial risk to pursue opportunity.
Well that settles that.
Innovator, from Latin, not french, a term less often heard, might be easier to get a handle on.
Webster says, to innovate is to:
intransitive verb: to make changes: do something in a new way
transitive verb: to introduce as or as if new
Innovators are the persons or organizations who are one of the first to introduce into reality something better than before.
An innovator innovates. Someone like an inventor, a researcher, a futurist, an idea man, … Got it!
Most Business Academy teachers don’t tell their students that SRO Hotels are full of entrepreneurs.; that being an entrepreneur is an extremely high-risk venture. That if the odds are one in a million of making a $million; don’t invest your life. In fact, don’t invest more than $1. That Jobs and Wozniak had a really big idea was much more important to Apple’s success than any willingness to risk it all. Musk has taken tremendous risks starting up Tesla, risk based on the considered conviction that electric cars were the future. Gates and Allen didn’t take the risk of starting Microsoft for the thrill of it. They did it because they, like Jobs, Wozniak, and Musk, were sure that they had glimpsed a future market. They saw the odds of success as being pretty good.
Which came first, the idea or the market?