What term describes a person who starts and runs their own business, often taking financial risks?

• A. Entrepreneur
• B. Manager
• C. Investor
• D. Employee

Answer: (A)

Entrepreneurship describes a person who starts and runs their own business, often taking financial risks. This involves spotting an opportunity, creating a plan, gathering resources, and making decisions to bring a new product or service to market. The entrepreneur owns the venture and bears the financial risk if it succeeds or fails, which distinguishes them from others. A manager operates within an existing company to run its day-to-day activities, an investor provides capital but doesn’t typically manage the business, and an employee works for someone else and does not own the business. For example, someone opening and growing a new cafe or tech startup is embodying entrepreneurship.