If profit is equal to zero the entrepreneur has earned nothi

If profit is equal to zero, the entrepreneur has earned nothing for his entrepreneurial talents and risk taking. True or False? Why? (Paragraph)

Solution

False.

Entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit. If you take a look at the definition of the word “entrepreneur” one word that should shine is the word “risks”. An entrepreneur is not just an entrepreneur because he knows how to make money but because he learns to make profit by taking risks.

It is a process of learning throgh experiences and which helps an enterpreneur to make better judgment of the situation so as to take optimal decisions. Failure is part of life and it should be acceptable that it is natural to fail. Failure gives a good amount of knowledge and philosophically it is a necessary part in learning. I would like to put two quotes here.

\"Investment in knowledge always pays you best interest\". - Benjamin Franklin

\"Success is a lousy teacher. It seduces smart people into thinking they can\'t lose.\" - Bill Gates

We could see some relation in these quotes and it is elaborated in earlier part.

Over the period of time concept of business has also evolved and now the definition of business as purely money making activity is quite obsolete. It is true that business needs to make money but it should consider well being of all the stakeholders. As Henry Ford has said that any business only making money is a poor business. Enterpreneur should consider these things also.