What is a startup? Eric Ries defines it this way: “A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.” So it is a human enterprise but what do we understand under enterprise?Enterprises could be defined in 4ways:

1.      Enterprise as the engine of the economy

Enterprises are the engines of theeconomy. They invent most of the inventions and they generate workplaces. There are 3 essential factors to start a company: a business opportunity, resources and the right people.

2.      Enterprise as a process

The process covers all the actions from the business opportunity to ceasing the venture. This 4 step process is the following: 1. Preparing to start a business 2. Starting the company 3. Operating the venture 4. Decision about carrying on

3.      Enterprise as creation of value

A company has to create value: by serving customers needs, by enrichment of the entrepreneurs or the shareholders and by supporting employees.

4.      Enterprises as economic organizations

A company is a purposeful and acquisitive economic organization. You can define organizations by many aspects: Size (small, medium sized companies), Legal form (Ltd, Non-profit), Nature of business (Supporting companies, saleable companies) or Business model (product/service).

In later posts we will have a closer look at all the four definitions. But in the next post I am going to tell you what is typical for a natural entrepreneur.

Don’t forget to follow and spread the word! You can also look us up on the social media sites and subscribe to our newsletter. :)