Entrepreneurship. The word itself conjures up ideas of innovation, risk and reward. It comes from the French “entreprendre” which means to start, undertake or initiate something. The term was coined in the 1700s by Richard Cantillon, who called small business founders “entrepreneurs,” whom he viewed as key risk-takers who fueled the economy and created change and progress.
A story as old as humanity
Long before Cantillon’s time, our ancestors practiced entrepreneurship, and the first examples of it were centered on the exchange of goods between tribal societies. It’s easy to imagine how it happened: perhaps someone in the tribe learned how to cultivate carrots instead of just collecting them in prehistoric times.
But she didn’t stop there. She became her tribe’s go-to carrot supplier, a carrot expert, a carrot queen. And then she got the idea to trade with other tribes. That’s the essence of entrepreneurship: finding a need and filling it better than anyone else.
It was this specialization that gave entrepreneurship its first real foundation: ancient humans didn’t just stop at food. Entrepreneurship would soon get crafty, literally. As early entrepreneurs got better at making things, they began trading in everything from hand tools to hand-polished gems, expressing their ingenuity through visible products of human creativity.
Age of Explorers and Markets
As towns and cities sprang up, the scope of entrepreneurship exploded. It was no longer just a local event. People began to travel far and wide by horseback and boat. This travel accelerated the spread of entrepreneurship even further. Towns were established as business centers, and merchants came to towns with their wares. Markets were bustling with activity, and trade routes crisscrossed the land and sea.
But while the barter system was practical, it also had its limitations. What if you had 12 eggs and needed a haircut, but the barber’s yard already had plenty of chickens? Enter money, and a revolution in the world of trade began. The concept of money evolved from stones and shells to metal coins and paper notes, making commerce even easier. And with money came the concept of a bank: a safe place to store wealth.
The Industrial Revolution: Setting the Pace of Entrepreneurship
While earlier industrial revolutions marked a transition from agriculture to manufacturing, today’s revolutions are driven by technological innovation. Regardless of the era, however, each revolution has sparked rapid social and economic change. And each revolution has been driven by entrepreneurs who take advantage of innovation.
First Industrial Revolution: Factories and Steam
In the late 1700s and early 1800s, factories sprang up in America, churning out goods faster than ever before. Machines took over the heavy lifting. Then the steam engine came along and propelled us forward, not just on foot or on horseback, but on steam locomotives, opening up vast new territories for trade.
The Second Industrial Revolution: Light, Action, and Cars
Starting around 1870, electricity started to light up things. The telegraph was born during this era, allowing ideas to spread rapidly and opening the door to globalization. The invention of the automobile reduced distances and gave rise to mass production. Entrepreneurs turned industries like steel and oil into economic powerhouses. And Hollywood also began around this time, capturing it all on film.
The Third Industrial Revolution: The Dawn of the Digital Era
Fast forward to the late 1960s, the rise of the computer and eventually the internet gave way to the atomic age and the digital age. Technology entrepreneurs invented new technologies and built global businesses selling them to the masses. From the early days of Apple to the dawn of social media, entrepreneurs leveraged this technology to transform ones and zeros into digital empires.
The Fourth Industrial Revolution: The Rise of Smart Technologies
And now we are in the midst of a revolution defined by digital transformation, data analytics, AI, and renewable energy. In other words, your Energy Star refrigerator tells you what to buy at the grocery store. Today’s entrepreneurs are focused on making their businesses smarter, more efficient, and greener, and connectivity is key.
The American Dream, Entrepreneurial Style
The United States has been a hotbed of entrepreneurship since the country’s founding, with roots dating back to the country’s founding. American history is filled with examples of entrepreneurs, from Henry Ford, who introduced Americans to the automobile, to Madame CJ Walker, who built a beauty empire from the ground up. It’s the ability to come up with an idea, start a business, and succeed that has made the United States a global center of innovation and wealth creation.
Entrepreneurship Today, From Silicon Valley to Main Street
From the Industrial Revolution to the tech boom, entrepreneurs have pushed boundaries, disrupted industries, and created world-changing innovations.
Today’s entrepreneurs are as diverse as their ideas. Whether they’re writing a business plan for the next blockbuster app in Silicon Valley or opening a unique brewery in a small town, they’re part of a rich tradition: they’re dreamers and doers who continue to shape the world, one innovative idea at a time.
Need someone to talk to about your startup idea? Contact a Chase business banker today. We’re here to help.
