Who Even Is An Entrepreneur?: Crash Course Business - Entrepreneurship #1

Summary

The video script explores the diverse world of entrepreneurship, emphasizing that anyone can be an entrepreneur with the right mindset and tools. It highlights the various forms entrepreneurship can take, from brick and mortar businesses to online ventures, and discusses the rise of the gig economy as a catalyst for entrepreneurial opportunities. The script also touches on the challenges and motivations of entrepreneurs, including the desire for freedom, the potential for wealth, and the importance of self-belief and adaptability in the face of failure.

Takeaways

• 🚀 Entrepreneurs are individuals who identify a need and take financial risks to start a business to fulfill it.
• 🌟 The term 'entrepreneur' is versatile and can describe a wide range of people from business tycoons to those with innovative ideas.
• 💡 Entrepreneurship is not limited to a specific industry or background; it can manifest in various forms and ventures.
• 📈 The gig economy has made entrepreneurship more accessible by providing flexible work opportunities and reducing the financial barriers to starting a business.
• 🔄 Entrepreneurs often seek freedom and independence, which can lead to creating inclusive company cultures and work environments.
• 💰 The potential for wealth and personal fulfillment are significant motivators for entrepreneurs, despite the financial risks involved.
• 📚 Entrepreneurs believe in their inherent value and potential, often feeling that their capabilities are not fully appreciated in traditional employment settings.
• 🚀 The concept of success varies for each entrepreneur and is deeply personal, ranging from financial goals to lifestyle preferences.
• 🔄 Failure is an integral part of the entrepreneurial journey, and successful entrepreneurs are those who learn from their mistakes and persist.
• 🌈 Entrepreneurship is not just about financial gain; it's also about the pursuit of personal values and the desire to make a difference.
• 🌟 The next step for entrepreneurs is to develop their business acumen and learn how to turn their ideas into feasible businesses.

Q & A

What is the core definition of an entrepreneur?

An entrepreneur is someone who sees a need and takes on the financial risk to start a business to fill that need.

How does the gig economy impact entrepreneurship?

The gig economy has made it financially easier for entrepreneurs to find people to help start their businesses without long-term commitments and has allowed early-stage entrepreneurs to support themselves while developing their products or services.

What are some traits that entrepreneurs often strive for?

Entrepreneurs often strive for traits like being trailblazing, innovative, problem-solving, and passionate.

What is the significance of the Global Entrepreneurship Monitor's statistic on business launches?

The statistic shows that over 100 million businesses are launched each year, highlighting the widespread nature of entrepreneurship and the constant creation of new ventures.

How does the traditional view of entrepreneurship differ from the modern perspective?

Traditionally, entrepreneurship was seen as creating one long-term business, but the modern perspective includes the rise of the gig economy, where entrepreneurship can involve multiple projects or temporary engagements.

What are some challenges faced by gig workers that might not be entrepreneurs?

Gig workers may face challenges such as lack of legal protections, standardized pay, difficulty maintaining insurance and retirement accounts, and the necessity of working multiple jobs to make ends meet.

What motivates entrepreneurs to take the leap and start a business?

Entrepreneurs are motivated by the desire for freedom, the ability to be their own bosses, the potential for wealth, and the belief in their own value and potential.

How does the Lean Startup methodology view failure in entrepreneurship?

The Lean Startup methodology sees failure as a natural part of the process, as long as entrepreneurs learn from their mistakes and continue to adapt and grow their businesses.

What does success look like for an entrepreneur?

Success for an entrepreneur is subjective and can range from earning a certain income, selling an idea for a large sum, becoming a CEO, or achieving personal goals that align with their values and passions.

Why is it important for entrepreneurs to redefine failure?

Redefining failure allows entrepreneurs to view it as a learning opportunity rather than a setback, which is crucial for resilience and long-term success in their ventures.

What is the role of grit, determination, and luck in entrepreneurship?

Grit, determination, and luck are essential elements that contribute to an entrepreneur's ability to persevere, overcome obstacles, and ultimately achieve their business goals.

Outlines

00:00

🚀 Defining Entrepreneurship

This paragraph explores the concept of entrepreneurship, questioning whether it's a genetic trait or a condition that can be caught. It highlights the broad use of the term 'entrepreneur' and emphasizes that entrepreneurs come from diverse backgrounds and industries. The core definition of an entrepreneur is someone who identifies a need and takes financial risk to start a business to address it. The paragraph also introduces Anna Akana as the host of Crash Course Business: Entrepreneurship and touches on the importance of grit, determination, and luck in entrepreneurship.

05:01

🌟 The Gig Economy and Entrepreneurship

The second paragraph discusses the rise of the gig economy and its impact on entrepreneurship. It explains how contract work, or 'gigging,' is becoming more prevalent, allowing entrepreneurs to find talent for their businesses without long-term commitments. The gig economy also provides flexibility for early-stage entrepreneurs to support themselves while developing their products or services. However, it also points out the challenges of the gig lifestyle, such as lack of legal protections and the necessity for some to participate due to financial struggles. The paragraph emphasizes the importance of work-life balance and the motivation behind entrepreneurship, including the desire for freedom and the potential for wealth.

10:03

💼 Belief in Self and the Pursuit of Success

The final paragraph delves into the motivations of entrepreneurs, focusing on their belief in their own value and potential beyond what their resumes suggest. It discusses the entrepreneurial mindset of turning internal value into financial success and the inspiration behind starting a business. The paragraph also touches on the reality of failure in entrepreneurship and the importance of learning from mistakes. It concludes by reiterating that anyone can be an entrepreneur with the right combination of grit, determination, and luck, and it encourages viewers to stay tuned for the next episode on the origin of business ideas.

Keywords

💡Entrepreneur

An entrepreneur is an individual who identifies a need in the market and takes on the financial risk to start a business to fulfill that need. In the video, entrepreneurs are portrayed as diverse, coming from various backgrounds and industries, and embodying traits like innovation and problem-solving. Examples include Beyoncé, Elon Musk, and individuals starting businesses like ice cream shops or online media empires.

💡Business Acumen

Business acumen refers to the ability to understand and effectively manage business operations, including financial aspects, market trends, and strategic planning. The video emphasizes the importance of developing business acumen for entrepreneurs to succeed in their ventures, as it involves understanding the market and making informed decisions to grow a business.

💡Grit

Grit is described as the perseverance and determination required to pursue long-term goals despite obstacles. In the context of the video, grit is a crucial trait for entrepreneurs as it helps them to stay committed to their business ideas even when faced with challenges, such as the failure of Beetle's Cat-Board venture.

💡Gig Economy

The gig economy is characterized by a labor market where short-term contracts or freelance work are common, as opposed to permanent jobs. The video discusses how the rise of the gig economy has made entrepreneurship more accessible by providing flexible work opportunities and allowing entrepreneurs to support themselves while developing their business ideas.

💡Innovation

Innovation is the process of introducing new ideas, methods, or products to improve or create a new market. The video highlights innovation as a key trait of entrepreneurs, who often bring new solutions to existing problems, such as the GirlBoss New Zealand network empowering women in STEM fields.

💡Risk

Risk in the context of entrepreneurship refers to the potential for financial loss or failure when starting a business. The video explains that entrepreneurs must be willing to take on this risk, as seen with Beetle who invests his personal savings into his Cat-Board prototype.

💡Luck

Luck is often considered an element of chance that can influence the success or failure of an entrepreneur's venture. The video acknowledges that while grit and determination are important, a bit of luck can also play a role in the success of an entrepreneur, as there is an element of unpredictability in business outcomes.

💡Personal Brand

A personal brand is the unique image and reputation that an individual creates for themselves, often used to establish credibility and recognition in their field. The video mentions personal branding as a strategy for entrepreneurs to differentiate themselves and attract customers or followers, as seen with celebrities and business tycoons who have built their personal brands.

💡Failure

Failure in entrepreneurship is the inability to achieve the desired outcome or the collapse of a business venture. The video discusses the importance of learning from failures and not giving up, as successful entrepreneurs often face multiple failures before finding success, such as the Lean Startup methodology advocating for learning through trial and error.

💡Success

Success for an entrepreneur is subjective and can mean different things, such as financial gain, personal fulfillment, or achieving specific goals. The video encourages entrepreneurs to define what success means to them, whether it's earning a certain income, selling an idea for a large sum, or creating an inclusive company culture.

Highlights

An entrepreneur is someone who sees a need and takes on the financial risk to start a business to fill that need.

Entrepreneurs can come from various backgrounds and industries, and there's no one-size-fits-all definition.

Entrepreneurship is not just about starting a business, but also about developing business acumen, grit, determination, and a bit of luck.

The Gig Economy has made entrepreneurship more accessible by allowing for flexible work and diverse income streams.

Entrepreneurs often seek freedom, the ability to be their own boss, and the potential for wealth.

Entrepreneurs believe in their inherent value and potential to turn their ideas into real-life success.

Entrepreneurship is not limited to traditional business models; it can also involve personal brands and online ventures.

The rise of the Gig Economy has shifted the global job market, making entrepreneurship more mainstream.

Entrepreneurs are often driven by the desire to create an inclusive company culture and work environment.

Entrepreneurship can be a way for underrepresented groups to define their own destiny and create opportunities.

The Lean Startup methodology encourages entrepreneurs to learn from failures and continue iterating on their ideas.

Entrepreneurs must define what success means to them, whether it's financial gain, personal fulfillment, or a combination of both.

The gig economy can provide a sense of income security, but it also comes with challenges such as lack of legal protections.

Entrepreneurs often work long hours and face the stress of financial risk, but they are motivated by the potential for independence and wealth.

Entrepreneurship is not for everyone, and it's important to consider the balance between work and personal life for mental health.

The video emphasizes that anyone can be an entrepreneur with the right mindset and resources.

Transcripts

What makes someone an entrepreneur?

Am I an entrepreneur?

Are you an entrepreneur?

Do I know any entrepreneurs?

Is it genetic?

Can I catch it?

Is it fatal?

Wait, what?

The word “entrepreneur” seems to be thrown around everywhere for everyone doing anything.

It’s used to describe celebrities and business tycoons like Beyoncé, Elon Musk, Marie Kondo,

and Jessica Alba.

But your brother who keeps bringing up his idea for coffee-flavored toothpaste might

make the list too.

Mmm!

Entrepreneurs pop-up in all types of industries and can have widely different backgrounds.

Some build personal brands, while others work tirelessly on a physical product they believe in.

Really, anyone can be an entrepreneur, given an idea and the right tools to develop it

into a functional business.

Together, we’ll develop our business acumen and learn the importance of grit, determination,

and a fair bit of luck.

I’m Anna Akana, and this is Crash Course Business: Entrepreneurship.

[Opening Music Plays]

Some people define an entrepreneur with buzzwords like “trailblazing,” “innovative,”

“problem-solving,” “passionate,” and on and on.

These might all be traits that entrepreneurs can strive for.

But, at its core, an entrepreneur is someone who sees a need and takes on the financial

risk to start a business to fill that need.

That may sound kind of vague, but that’s kind of the point.

There’s no cookie-cutter entrepreneur.

Unless you, like, start a business to sell cookie cutters.

In which case, yes, there is a cookie-cutter entrepreneur.

Your idea might take the form of a physical product with a physical store -- called a

brick and mortar business.

In Montana, Charlie and Barbie Beaton of Big Dipper Ice Cream

took their passion for locally made ice cream from one shop in downtown Missoula to appearing

on Good Morning America.

Daaaaaamn.

Or instead of a tangible product, your venture might be a national empowerment network.

GirlBoss New Zealand was founded by 20-year-old Alexia Hilbertidou after she was the only

woman in her upper-level physics class.

Her goal is encouraging high-school-age women to pursue STEM and leadership careers.

Or you might set your sights on an international online media empire, like Arianna Huffington,

the founder and namesake of HuffPost.

She founded her site (with partners) as a friendly alternative to news aggregators.

And she eventually sold it to AOL in 2015 for $315 million US dollars.

Get it, Ari.

It’s clear that entrepreneurs come in all flavors.

I mean, according to the Global Entrepreneurship Monitor, over 100 million businesses are launched

each year.

That’s 11,000 per hour or 3 new businesses per second.

...There they go!

So instead of just defining who is an entrepreneur, since it is such a wide scope - we can instead

narrow down our definition by understanding who isn’t one.

Let’s go to the Thought Bubble.

Say Congress works for Me-Wow, a feline health and fitness company.

He notices a need -- a shocking lack of cat transportation -- and comes up with the idea

for the Cat-Cycle, which he pitches to his boss.

Me-Wow immediately sends the Cat-Cycle into production because it’s a genius idea, obvi

and it flies off the shelves.

Even though Congress is using an entrepreneurial mindset, by our definition, he isn’t an

entrepreneur yet.

The company Me-Wow actually took the financial risk to develop, produce, and sell the Cat-Cycle.

Meanwhile, Beetle sees the same need for cat transportation and sketches out the Cat-Board

in his personal idea notebook after work.

He’s gained valuable experience working for Me-Wow and develops the Cat-Board in the

evenings and on weekends before striking out on his own.

Using his personal savings, Beetle commissions a prototype that he shops around to local

stores.

A few are interested and he sets up contracts with them.

As his sales begin to grow, Beetle creates new designs, but he doesn’t pay attention

to what his customers like or dislike about the Cat-Board.

Because he failed to make valuable improvements to the Cat-Board for his customers, sales

plummet.

It’s a tough decision, but Beetle cuts his losses and sells his Cat-Board designs to

Me-Wow, which revamps his idea as the Dog-Board.

Beetle is an entrepreneur because he saw a need and

took the financial risk to fill it!

It didn’t go so well because he didn’t incorporate customer feedback.

But now he knows where he went wrong and won’t make the same mistake in his next entrepreneurial

endeavor.

Thanks Thought Bubble!

For a while, the classic story of an entrepreneur was someone who created one business that

became a long-term project,

like opening a new restaurant or founding a tech startup to make flashy phone games.

But that’s not the whole picture anymore.

There’s been a shift in the global job market that has opened the door for entrepreneurship

to become more mainstream.

Specifically, I’m talking about the rise of the Gig Economy.

Contract work, called gigging, is becoming more popular and taking up more of the labor

market.

And I don’t just mean gigs like musicians and comedians hopping between open mic nights.

Instead of a long-term relationship where employees are paid salaries by the hour or

year, businesses are temporarily hiring people for specific projects.

This shift has made it financially easier for entrepreneurs to find people to get their

businesses going, without committing long-term to paying employees.

And it’s allowed early-stage entrepreneurs to find flexible work to support themselves

as they develop their product or service.

This doesn’t mean everyone in the gig economy is an entrepreneur, it’s just given more

people the opportunity.

So a more traditional path might be joining an accounting firm right after college and

working 9 to 5, Monday to Friday until you retire.

Or die of boredom.

Spreadsheets?

For LIFE??

NO THANKS

Some people might feel fulfilled with that kind of steady employment.

And the stability that comes from being a salaried employee with health insurance can

be incredibly valuable.

Others, like us entrepreneurs, might itch for more independence.

In the gig economy, you could have a couple ways to make money, in addition to or instead

of that 9-to-5 job.

And you can go online to look for gigs from anywhere -- not just your real-life community.

So you might consult for a network of women small business owners on their day-to-day

accounting, create vlogs with tax software tips, and sell unicorn knit hats on Etsy that are knit out of the softest fabric there is.

On the plus side, this allows workers to build robust portfolios of work and find fulfilling

gigs.

Having separate jobs can also provide a stronger sense of income security than one full-time

job.

Even if you lose one, you’re still making money.

All hail the side-hustle!

Today’s entrepreneurs are well-suited for the gig economy because we know how to hustle.

We’re independent thinkers who are comfortable with developing our own diverse income streams,

marketing ourselves, and connecting with others.

I mean, who hasn’t had a Lyft driver who moonlights as a cinnamon roll artisan, right?

But there are still problems with the gig lifestyle.

Sure, someone might become a Lyft driver to help fund their sugary dream.

But they’re almost certainly not doing it because driving strangers around is their

passion.

For some people, participating in the gig economy is a necessity, not a choice.

Scrambling to pay rent and afford food is another reason to have a bunch of gigs.

And, depending on the country and government, gig workers can have fewer legal protections

- like mandatory breaks and standardized pay -- or they might have a harder time maintaining

insurance and retirement accounts.

This makes some countries more attractive to entrepreneurs, such as New Zealand, Singapore,

and Denmark, based on The World Bank’s annual analysis of the “Ease of Doing Business.”

But even in those countries, there’s a difference between legally being able to take a break

and actually taking a break.

It can be a struggle to turn off the hustle -- especially for those of us trying to create

a personal brand with our art or online presence.

But taking time for fun hobbies and spending time with friends and family are important

parts of being successful, and so necessary to stay mentally healthy. Trust me!

So it’s not all blue skies and rainbows.

But if you ever wanted to be an entrepreneur, the gig economy has made it more possible

now than ever.

Even still, entrepreneurship isn’t easy.

Taking a financial gamble is stressful, and so is working long hours to try and get a

project off the ground.

I know for me, the lack of structured work time often means that my business has no off

time.

And if I’m not careful, I can work around the clock and get myself exhausted.

But tons of us take the leap to start a new business and stick with it through the ups

and downs, so what exactly keeps us motivated?

At the top of the list is freedom.

Entrepreneurs get to be their own bosses.

This can mean setting your own hours and deciding on dress codes... or lack thereof.

Sweatpants all day everyday amirite?

Maybe you want to work from bed or while you travel, writing emails by a pool.

And for traditionally underrepresented groups in business like women, people of color, or

the LGBTQ community, ding ding ding, I am all those things. It can mean defining

your own destiny.

You can create an inclusive company culture and work environment, rather than feeling

stuck in an uncomfortable -- or even possibly illegal -- situation with a boss or coworker.

If someone keeps talking over you and dismissively says women can’t be funny, you don’t need

to hire them for your writer’s room or film set.

Or if a coworker from a previous job got fired for having a natural hairstyle, you can create

a business where that would never happen.

You wield the power.

A study in the Social Science Research Network journal found that entrepreneurs start companies

because they mostly believe that:

They are inherently more valuable than how they appear on paper.

They are wasted working for someone else

Their resumes don’t show “the real them”

Large companies can’t appreciate their full potential.

And They are capable of turning their internal

value into real life money.

Basically, entrepreneurs believe in themselves.

And sure, building self-confidence over time isn’t always easy, but it can be a powerful

motivator.

And then, there’s potential wealth.

Yes, there’s financial risk in starting a business, but there’s money in running

a successful one.

Entrepreneurial lore is full of rags-to-riches tales, where people pitch the next SnapChat

and are launched into the business stratosphere.

Like, Oprah Winfrey has said she spent her early childhood wearing overalls made of potato

sacks.

But she became North America’s first black multi-billionaire and “Queen of the Daytime

Talkshow.”

Sure, this is the stuff of inspirational posters, and not everyone can make it this big.

But entrepreneurship does create a culture of opportunity that might work for some non-traditional

workers.

Of course, every entrepreneur with a massive success has also had hundreds of failures.

Yep, the dreaded F word.

Lean Startup methodology is basically the globally recognized guidebook for entrepreneurs

created by Steve Blank and Eric Ries.

And it says stumbling is perfectly fine if we learn as we go.

But to identify and learn from failures, every entrepreneur has to ask themselves: what does

success look like to me?

Is it earning $30,000 a year in your food truck and skiing every weekend?

Is it selling your idea for a million dollars?

Is it becoming the CEO of a mid-size media production company and writing novels on the

side?

Thanks for hiring us, Hank!

Also where is the sequel and when can I star in the movie adaptation?

Or is it owning 6 cats and producing your own films?

Whatever success is, it’s entirely up to you.

Of course no one wants to fail.

But together we’ll learn how to redefine failure and pick up the pieces if it’s truly

unavoidable.

It’s not that successful entrepreneurs never faced failure; it’s that they didn’t quit.

So the bottom line is /anyone/ can be an entrepreneur with a little grit, determination, and luck.

And remember, you may have stopped believing in unicorns, but they’ve never stopped believing

in you.

Next time, we’ll talk about that fundamental piece at the core of any entrepreneur: their

ideas -- where ideas come from, who to take them to, and how to turn them into feasible businesses.

Thanks for watching Crash Course Business. And thank you to Thought Cafe for the amazing graphics.

If you want to help keep Crash Course free for everybody, forever, you can join our community

on Patreon.

And if you want to learn more about labor markets, check out this Crash Course Economics Video.