What Is the Role of an Entrepreneur?

by/8th August 2025/inSelf Employed, Starting A Business, UK Startup
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What Is the Role of an Entrepreneur?

If you’re preparing to launch a business in the UK, you’re likely wondering: what is the role of an entrepreneur? It’s a question that goes far beyond the idea of simply being your own boss. In truth, the role of an entrepreneur is dynamic and demanding requiring leadership, problem-solving, strategic thinking, and the ability to manage both risk and reward.

At Formations Wise, we support thousands of new businesses across the UK every year. From single-founder startups to ambitious, fast-growth ventures, we’ve seen first-hand the many hats entrepreneurs wear. This post hopes to break down some of those responsibilities and explains why understanding your role is essential for startup success.

Defining the Entrepreneur

At its core, an entrepreneur is someone who identifies a business opportunity, takes action to develop it into a viable product or service, and assumes the risk and responsibility of making it succeed. Entrepreneurs are not just business owners; they are innovators, problem-solvers, and value creators who shape the economic landscape.

In practical terms, being an entrepreneur could involve launching a high-growth tech startup, opening a local café, offering consulting services, or building a dropshipping store. The industry may vary, but the mindset remains consistent: entrepreneurs bring together vision, strategic execution, and a focus on delivering real-world value to customers.

In the UK, entrepreneurship continues to thrive across sectors. From digital platforms and sustainable goods to healthcare innovation and financial services, founders are building businesses that respond to current challenges and future opportunities.

If you’re considering becoming an entrepreneur, ask yourself:

  • What problem am I solving?
  • Who am I solving it for?
  • What makes my approach different or better?

The answers form the foundation of your entrepreneurial journey and your future business.

Helpful Resource
Not sure where to begin? The Prince’s Trust Enterprise Programme offers mentoring and workshops to help new entrepreneurs in the UK develop their business ideas.

Tip for UK Startups: Before you commit to launching, test your idea through a Minimum Viable Product (MVP) – a basic version of your product or service that allows you to get early feedback. Tools like Typeform or Canva can help you design surveys, pitch decks, or mockups quickly.

The Key Roles of an Entrepreneur

1. Innovator and Problem-Solver

One of the most defining roles of an entrepreneur is that of an innovator, someone who doesn’t just accept the status quo but actively looks for ways to improve it. Entrepreneurs spot inefficiencies, unmet needs, or evolving market demands and respond with practical, creative solutions.

Importantly, innovation doesn’t always mean inventing something completely new. In fact, many successful UK startups have gained traction by:

  • Enhancing an existing service (e.g. delivering faster, cheaper, or with added personalisation)
  • Improving customer experience through smarter UX or more transparent communication
  • Reimagining or combining existing ideas in ways that better suit today’s consumers

For example, UK entrepreneurs have led the way in sectors such as:

  • Fintech – With companies like Monzo, Starling Bank, and Revolut transforming how individuals manage money
  • Green technology – Startups like Too Good To Go and Octopus Energy are addressing sustainability and climate challenges
  • E-commerce and retail tech – Platforms such as Depop have modernised second-hand selling for a digital-first audience
  • Transport – From micromobility startups to electric vehicle delivery services, entrepreneurs are reshaping how people and goods move
  • Property and PropTech – Platforms like Nested and GetAgent offer tech-enabled alternatives to traditional estate agencies

What unites these businesses is their founder’s ability to spot a problem and build a solution people are willing to pay for.

Tip for entrepreneurs: Start by observing your own frustrations as a consumer or professional. What processes feel outdated? What services leave you wanting more? Your best idea may come from something you personally experience every day.

Resource
If you’re exploring how to test and validate a new business idea, check out the free Start-Up Toolkit from Innovate UK EDGE, which offers support to early-stage entrepreneurs looking to bring innovative ideas to market.

2. Risk-Taker

At the heart of every entrepreneurial journey is risk and how it’s managed can often determine whether a business thrives or fails. Entrepreneurs willingly enter into uncertainty, knowing they must make decisions without guarantees. These risks can be financial, personal, or professional, and they often come simultaneously.

For many, entrepreneurship involves:

  • Investing personal savings or borrowing money to fund the early stages of a business
  • Leaving behind stable employment, benefits, or career progression for the unknown
  • Launching a product or service into a competitive or untested market

However, being a risk-taker doesn’t mean being reckless. In fact, some of the most successful entrepreneurs are deeply risk-aware. They take measured steps, backed by research, planning, and contingency strategies. This might include:

  • Starting small and scaling based on data and customer feedback
  • Diversifying income streams to protect against single points of failure
  • Keeping overheads lean in the early stages to extend runway
  • Using business insurance or legal protections to limit liability

In the UK, new entrepreneurs can reduce risk by taking advantage of government-backed support. For instance, the Start Up Loans scheme offers personal loans of up to £25,000 with a fixed interest rate, plus free mentoring to help founders avoid common pitfalls.

Tip: Use a risk matrix to identify potential challenges across financial, operational, legal, and reputational areas. Rank each by likelihood and impact, and create mitigation plans. It’s a simple yet powerful way to stay proactive instead of reactive.

Resource The British Business Bank offers guidance on funding options and risk reduction for UK SMEs, including finance finder tools tailored to your stage and sector.

3. Decision-Maker

One of the most constant and critical roles of an entrepreneur is that of a decision-maker. From the moment you start your business, you’re responsible for steering it through a series of choices some small and tactical, others strategic and high-stakes.

Entrepreneurs routinely make decisions in areas such as:

  • Pricing – How much should you charge? Will you lead with low-cost entry pricing or premium positioning?
  • Branding and positioning – What message does your business communicate? Who are you speaking to, and how?
  • Hiring – When is the right time to hire? Should you outsource or bring in full-time staff?
  • Funding – Should you bootstrap, seek investment, or apply for grants and loans?

As your company grows, the volume and complexity of decisions increases. What sets successful entrepreneurs apart is their ability to:

  • Stay informed – They seek out data, talk to customers, and monitor competitors.
  • Analyse options quickly – They assess trade-offs, weigh risks, and avoid over-analysis paralysis.
  • Learn from mistakes – No one makes the right decision every time. Good entrepreneurs reflect, adjust, and move forward.

Decision-making also evolves over time. In the early stages, you may make every call yourself. But as you grow, you’ll need to delegate effectively and empower others to make decisions aligned with your company’s values and goals.

Tip: Use a structured approach to major decisions. A basic framework like Pros vs. Cons, or a more advanced tool like SWOT analysis, helps remove emotion and bring clarity to tough choices.

Resource
The Institute of Directors (IoD) offers resources and training for leadership and strategic decision-making particularly useful as your startup scales and board-level thinking becomes part of your role.

Recommended Read
The Lean Startup by Eric Ries offers practical strategies for making fast, data-informed decisions under uncertainty a must-read for early-stage entrepreneurs.

4. Leader and Team Builder

Even if you’re launching your business alone, lasting success rarely happens in isolation. One of the most important roles of an entrepreneur is to lead not just through vision, but through the ability to build, inspire, and coordinate a team.

Whether you’re working with co-founders, freelancers, remote contractors, or your first hires, your responsibility as a leader goes beyond assigning tasks. You’re creating the environment and culture in which others can thrive and contribute meaningfully to your mission.

Strong entrepreneurial leadership involves:

  • Setting the company culture – From the earliest days, your values and behaviour shape how your team communicates, works, and makes decisions. Culture isn’t something to ‘fix later’ – it’s established from day one.
  • Motivating and guiding others – Teams look to founders for clarity, purpose, and encouragement. A good entrepreneur provides direction, not micromanagement.
  • Delegating effectively – Knowing what to let go of (and when) is a critical skill. Delegation allows you to focus on high-impact work and empowers others to take ownership.
  • Managing conflict and encouraging collaboration – Disagreements happen in every team. Entrepreneurs must be prepared to resolve tension, encourage honest feedback, and foster collaboration over competition.

UK startups that scale successfully tend to have founders who build resilient, adaptable teams and know when to bring in talent to complement their own skills. Whether it’s hiring a part-time finance lead or outsourcing digital marketing, recognising your limitations and trusting others is key to growth.

Tip: As your business grows, consider using personality or working style assessments (like DISC or 16Personalities) to understand how you and your team work best together especially if you’re hiring your first employee or building a founding team.

Resource
The Small Business Charter connects entrepreneurs with business schools across the UK, many of which offer leadership development programmes and mentoring for startup founders.

Further Reading
Leaders Eat Last by Simon Sinek is a widely respected book on building trust-based, high-performing teams highly relevant for startup founders navigating early-stage leadership challenges.

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5. Planner and Strategist

Passion may spark a business idea, but it’s planning and strategy that turn it into a sustainable venture. One of the most fundamental roles of an entrepreneur is to chart a clear path forward and know when to adjust course.

From the very beginning, entrepreneurs must build structure into their startup vision. This includes:

  • Creating a business plan – A well-structured plan outlines your value proposition, market analysis, marketing strategy, operations, and financial forecasts. Even if you’re not seeking funding, writing one helps clarify your thinking and identify gaps.
  • Setting goals and milestones – Clear, measurable goals give you and your team a sense of direction and progress. Whether you’re aiming for your first 100 customers or hitting £10,000 in revenue, goals help you stay focused.
  • Monitoring performance – Regularly track KPIs (key performance indicators) to assess what’s working and what’s not. This might include customer acquisition costs, retention rates, or monthly recurring revenue.
  • Pivoting when necessary – No plan survives contact with the market unchanged. Strategic entrepreneurs are not rigid they evaluate feedback, test new ideas, and shift direction when required.

Being strategic is particularly critical in fast-moving or competitive sectors like fintech, healthtech, or ecommerce, where market conditions can change overnight. Entrepreneurs who thrive in these environments are those who build with agility, not just ambition.

Tip: Use the SMART framework for setting business goals: Specific, Measurable, Achievable, Relevant, and Time-bound. This keeps your objectives actionable and focused.

Resource The Start Up Loans Company offers free business plan templates, cash flow forecast sheets, and step-by-step guides to help new founders build a strong foundation.

Useful Tool Notion or Airtable can be used to plan, track, and adjust your business strategy in real time. You can set up dashboards for OKRs (Objectives and Key Results), project planning, or even financial targets.

Further Reading
Good Strategy Bad Strategy by Richard Rumelt offers a no-nonsense breakdown of what makes business strategy effective and how to avoid vague goals and wishful thinking. It’s especially useful for entrepreneurs learning to think critically about execution.

6. Marketer and Sales Driver

In the early days of a business, you are the brand. Your enthusiasm, clarity of message, and ability to connect with others will directly shape how your product or service is received. As an entrepreneur, you’re not just building a business you’re constantly pitching, persuading, and positioning it in the market.

Marketing and sales aren’t separate roles in the beginning. They’re part of your core responsibility as a founder. This includes:

  • Pitching your idea – Whether to potential investors, partners, or collaborators, your ability to clearly and confidently present your vision is vital.
  • Selling to your first customers – Your early sales are often made through direct conversations, personal outreach, or word of mouth. Your ability to listen, empathise, and solve problems will be key.
  • Crafting your value proposition – You must clearly explain why your product or service is different and why it matters. What makes you the better choice?
  • Building a network – Connections often lead to opportunities, partnerships, and sales. Networking through events, social media, and local organisations is one of the most underrated entrepreneurial skills.

In the UK, there are many affordable (or free) ways to get visible. Local Federation of Small Businesses (FSB) meetups, Chambers of Commerce, and startup events run by co-working spaces offer opportunities to build a local presence.

Online, LinkedIn is a particularly powerful tool for B2B entrepreneurs, while platforms like TikTok and Instagram can be highly effective for B2C and product-led businesses.

Tip: When starting out, create a simple one-page pitch deck or landing page to test how well your value proposition resonates. Tools like Carrd or Canva make this easy and fast.

Resource
Startups.co.uk – Marketing a New Business provides accessible guides on brand building, PR, digital marketing, and early-stage sales techniques specifically tailored to UK entrepreneurs.

Further Reading
Building a StoryBrand by Donald Miller is a practical framework for shaping your messaging so that customers immediately understand what you offer and why it benefits them especially useful if you’re not a trained marketer.

7. Financial Steward

While it may not be the most glamorous aspect of entrepreneurship, financial management is one of the most important. Cash flow issues are consistently among the top reasons startups fail in the UK and it’s often due to poor planning, not a lack of opportunity.

As an entrepreneur, your role as a financial steward means taking ownership of the money flowing in and out of your business. This includes:

  • Budgeting and forecasting – You need to know how much it costs to run your business, what your income targets are, and how long your available funds will last. Financial forecasting helps you plan for seasonal changes, marketing pushes, or future investment rounds.
  • Controlling costs – Especially in the early stages, keeping your overheads lean can make or break your venture. Entrepreneurs must assess every expense and question its return on investment.
  • Understanding basic accounting – You don’t need to be a chartered accountant, but you do need to understand key concepts such as profit and loss, cash flow, tax liabilities, and how to read a balance sheet.
  • Securing funding or investment – Whether you apply for a Start Up Loan, approach an angel investor, launch a crowdfunding campaign, or pitch to VCs, it’s your responsibility to decide which form of funding aligns best with your goals and growth stage.

UK startups have access to a wide range of funding options, including:

  • Start Up Loans from the British Business Bank – unsecured personal loans with fixed interest and mentoring
  • SEIS and EIS investment schemes – tax relief schemes designed to encourage angel investment in early-stage companies
  • Innovate UK grants – non-repayable funding for R&D-driven businesses
  • Equity crowdfunding platforms like Seedrs and Crowdcube
  • Regional growth funds and accelerator programmes

Tip: Use online accounting software from day one. Tools like FreeAgent, Xero, or QuickBooks can help you manage expenses, send invoices, calculate VAT, and prepare for Self Assessment or Corporation Tax filings.

Resource
Accounting Wise provides affordable, expert-led online accounting services for UK startups from bookkeeping to business tax support. It’s a useful partner as your financial responsibilities grow.

Further Reading
Profit First by Mike Michalowicz presents an intuitive system for managing cash and ensuring your business remains profitable especially helpful for first-time founders unfamiliar with financial planning.

8. Resilience Champion

One of the most overlooked yet essential roles of an entrepreneur is to act as the resilience champion for yourself, your team, and your business. While headlines often glamorise success stories, the reality of entrepreneurship includes regular setbacks, rejections, delays, and moments of self-doubt.

Whether it’s a product that flops, a funding application that’s declined, or a key hire who doesn’t work out, resilience is what keeps entrepreneurs going when the path forward is unclear.

Building resilience means developing the ability to:

  • Stay focused on your long-term vision, even when day-to-day operations feel overwhelming
  • Bounce back from rejection, using it as fuel to improve your offer, your pitch, or your approach
  • Manage stress, especially when dealing with cash flow issues, legal concerns, or unexpected operational problems
  • Cultivate a growth mindset, where challenges are viewed as learning opportunities, not roadblocks

UK entrepreneurs operate in a fast-moving environment from regulatory shifts to changing consumer expectations so adaptability is vital. Startups that survive the early years typically have founders who are mentally prepared for uncertainty and can pivot without losing momentum.

Resilience is also about knowing when to ask for help. Mentors, peer networks, and even therapy or coaching can make a meaningful difference when things get tough.

Tip: Don’t isolate yourself. Join a founder support group, co-working hub, or online startup community. Platforms like Foundervine and Startup Nation offer spaces to connect with others facing similar challenges.

Resource
Mental Health at Work – A UK resource designed to support small business owners and their teams with mental health tools, stress management, and well-being planning.

Further Reading
The Obstacle Is the Way by Ryan Holiday draws on Stoic philosophy to show how to turn adversity into advantage, a powerful mindset framework for entrepreneurs navigating uncertainty.

Real-World Example: The UK Entrepreneur Landscape

Take fintech startup founders in London or AI entrepreneurs in Manchester many started with an idea and scaled their companies by playing all of the roles above, especially in the early stages.

The UK startup scene is competitive but well-supported through initiatives like:

  • Start Up Loans by the British Business Bank
  • SEIS and EIS schemes for investment
  • Accelerators like Tech Nation (now replaced by new programmes)
  • Co-working spaces and incubators across cities like Bristol, Leeds, and Edinburgh

Being an entrepreneur in the UK today means having access to support, but also navigating a rapidly evolving regulatory, economic, and technological landscape.

Common Misconceptions About the Entrepreneur Role

“Entrepreneurs just come up with ideas.”

Ideas are only the beginning. The real value lies in execution building, testing, launching, and refining your business.

“Entrepreneurs work alone.”

While many start as sole founders, building a strong network of collaborators, suppliers, and advisors is essential.

“You need a lot of money to get started.”

Plenty of entrepreneurs bootstrap their businesses using personal savings, low-cost digital tools, and lean startup methods before attracting funding.

How to Embrace Your Role as an Entrepreneur

If you’re new to business or feeling overwhelmed, here are a few ways to step confidently into the entrepreneurial role:

  • Educate yourself – Books, podcasts, courses, and mentors all help sharpen your skills
  • Start small, think big – Test ideas on a small scale before going all in
  • Build a support network – Join UK entrepreneur groups, attend meetups, and seek mentorship
  • Get help where needed – Use accounting software, legal advisors, or formation services to lighten your load
  • Stay focused – Keep your mission front and centre as your business grows

Final Thoughts on “What is an entrepreneur?”

So what is the role of an entrepreneur? It’s a little bit of everything: leader, builder, problem-solver, risk-taker, and visionary.

But above all, it’s about taking action. Entrepreneurs turn ideas into impact. If you’re ready to take the leap, make sure you understand the responsibilities, prepare to wear multiple hats, and stay committed to the long game.

Looking to launch your business in the UK? From company formation to guidance on compliance, we’re here to help you get started right and stay focused on what matters most: growing your vision into reality.

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