Who is defined as a person that starts a business and assumes the associated risks?

The term that best fits the definition of a person who starts a business and takes on the associated risks is entrepreneur. Entrepreneurs are key players in the business world as they are responsible for creating new ventures, introducing innovative ideas, and driving economic growth. This role involves not only the conception of a business idea but also the courage to invest time, resources, and energy, often without any guarantee of success.

Entrepreneurs assess market opportunities and identify potential challenges, making strategic decisions that help in the development and growth of their businesses. They are typically characterized by their willingness to take risks, a trait essential for navigating the uncertainties inherent in starting and running a business. This distinction underscores why the choice highlighting the entrepreneur captures the essence of someone who ventures into the unknown of business ownership.

In contrast, other roles such as an investor, executive, or manager may contribute significantly to a business but do not encapsulate the definition of creating a business from the ground up while assuming the inherent risks associated with that process. Investors provide funding, executives oversee operations but may not have started the business, and managers focus on daily operations rather than founding ventures.