The Corporate Entrepreneur

Suggests a functional definition of the entrepreneur that includes the corporate entrepreneur. Functionally - and irrespective of industry, environment, or business type - the entrepreneur: (1) takes responsibility of an enterprise, (2) makes crucial, final decisions, and (3) bears the peculiar uncertainties of a new enterprise, without the promise of remuneration by any other agent. Though it has been argued that the corporation changes the meaning of entrepreneurship, according to this functional definition the corporation actually conforms to and clarifies what it means to be an entrepreneur. After all, the modern corporation calls for increased functional specialization that relies upon decisive leadership and risk-bearing responsibility. Within a corporation, the common stockholder usually takes on the form of the entrepreneur, as a person with no guarantee of personal claims of income. The preferred shareholder and income bondholder also serve as entrepreneurs in some cases, though active corporate executives are only entrepreneurs in the sense of earning residual income based on uncertainties. The analysis concludes that profit tied to economic progress can only be achieved by the entrepreneur's willingness to bear uncertainties without promise of profit. (CJC)