What is an Entrepreneur?
A while back I high profile franchise ‘expert’ blogged that franchise owners are ‘not really entrepreneurs’. Humm…..
I have been thinking about that comment and I would have to respectfully disagree. In the large majority of situations, the franchisee would be an entrepreneur.
First, let’s start with the definition of the word ‘Entrepreneur’. Although there are many definitions, universally the definitions state that entrepreneurs assume financial risk, maintain control to empower outcome and reap financial rewards if they are successful. So, if you make an investment in an asset (a business), where your actions with effect the success of the enterprise, and can reap the financial rewards including cash flow, asset value and taxation, then it is pretty clear that you are an entrepreneur.
With very few exceptions, most franchise systems deliver all these characteristics to the franchisee. Partnering with a third party (the franchisor) does not change the fact that franchisee’s are entrepreneurs. Securing structural advantages by entering a license, dealership, distribution, agency or franchise agreement, is simply a business decision that, when executed correctly, leads to greater success.
As you explore business ownership, remember that regardless of the structure, you are the entrepreneur. Ultimately, the success of the business rests with you.