Entrepreneurship is the act of starting and building a business, taking on financial risks in the hope of making a profit and creating something valuable. An entrepreneur is someone who sees a problem or opportunity and builds a business to address it. When a teenager starts a lawn-mowing service or someone opens a bakery, they're practicing entrepreneurship.

Entrepreneurship requires a good idea plus the skills to execute it. Entrepreneurs must figure out what customers want, manage money carefully, hire and work with other people, and persist through setbacks. Most new businesses fail, which means entrepreneurs risk their time and money without any guarantee of success. But successful entrepreneurs can create jobs, introduce useful products, and build wealth for themselves and their communities.

The word comes from a French term meaning “to undertake,” capturing the idea that entrepreneurs undertake challenging projects others might avoid. Historical entrepreneurs like Henry Ford (automobiles) and Madam C.J. Walker (hair care products) transformed entire industries. Today, entrepreneurs start everything from tech companies to food trucks to online tutoring services.

Entrepreneurship is different from simply having a job or managing someone else's business. Entrepreneurs bear the risk: if the business fails, they lose their investment. But if it succeeds, they reap the rewards of their vision, effort, and courage.