Ernst & Young Entrepreneur of the Year?
February 12, 2008
According to Wikipedia, an entrepreneur is ‘a person who undertakes and operates a NEW enterprise or venture and assumes some accountability for the inherent risks.’
My question, “Are you an entrepreneur if you were hired by someone else and paid a salary for your work?”
For example, John Smith starts a widget company. He spends his time and money to hire a few employees and a few clients. After a time he needs help running the company and hires Joe Blow to become the new CEO. Joe is paid an attractive salary and is given stock options. Is Joe an entrepreneur?
My next question, “When do you cease being an entrepreneur?”
For example, after running his business for ten years Mark Jones took it public, now twenty years later the company has 20,000 employees and offices throughout the world. Mark has been running the company for 30 years. Most anyone who met Mark would assume he was a smooth corporate operator, not a fast and loose entrepreneur. Is Mark still an entrepreneur?
Ernst & Young celebrate entrepreneurship each year with their Entrepreneur of the the Year award. Have you ever looked at the people on their lists? I glanced at the list for and was prompted to write this post. Most of the folks on the list are well deserving of praise, but a number of the nominees, IMHO, are not entrepreneurs. I don’t think anyone who has never taken a financial risk should be called an entrepreneur. For example, if you have never invested your own money, taken a personal loan, or maxed out your credit cards it isn’t likely you are an entrepreneur. If you were hired to run a company, offered a six figure salary with stock options you are just a rich guy (according to the Democrats anyway).
