The entrepreneur plays a central role in modern economies by identifying and exploiting new business opportunities. This involves taking on risk and effectively coordinating the other factors of production—land, labor, and capital—to create and grow successful enterprises in order to make profits.

• Risk-taking: Entrepreneurs accept both financial and personal risks when starting and managing a business, recognizing that success is uncertain but necessary for innovation and progress.
• Organization: They organize and manage resources by hiring staff, obtaining capital, and coordinating production to ensure efficient operation and profitability.
• Innovation: Entrepreneurs are key drivers of innovation, introducing new products, services, and technologies that enhance productivity and satisfy consumer needs.
• Flexibility: They adjust quickly to changes in consumer preferences, technology, and market conditions, allowing their businesses to remain competitive in dynamic environments.
• Job creation: By establishing and expanding firms, entrepreneurs generate employment opportunities and contribute significantly to economic growth.