A businessperson, businessman, or businesswoman is an individual who has founded, owns, or holds shares in (including as an angel investor) a

private-sector The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment Th ...

company. A businessperson undertakes activities (commercial or industrial) for the purpose of generating cash flow, sales, and revenue by using a combination of

human Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedalism and exceptional cognitive skills due to a large and complex brain. This has enabled the development of advanced tools, culture, ...

, financial,

intellectual An intellectual is a person who engages in critical thinking, research, and reflection about the reality of society, and who proposes solutions for the normative problems of society. Coming from the world of culture, either as a creator or a ...

, and

physical capital Physical capital represents in economics one of the three primary factors of production. Physical capital is the apparatus used to produce a good and services. Physical capital represents the tangible man-made goods that help and support the produ ...

with a view to fueling economic development and growth.

History

Prehistoric period: Traders

Since a "businessman" can mean anyone in industry or commerce, businesspeople have existed as long as industry and commerce have existed. "Commerce" can simply mean "trade", and trade has existed through all of

recorded history Recorded history or written history describes the historical events that have been recorded in a written form or other documented communication which are subsequently evaluated by historians using the historical method. For broader world hist ...

. The first businesspeople in human history were traders or merchants.

Medieval period: Rise of the merchant class

Merchants emerged as a "class" in

medieval Italy The history of Italy in the Middle Ages can be roughly defined as the time between the collapse of the Western Roman Empire and the Italian Renaissance. The term "Middle Ages" itself ultimately derives from the description of the period of "obsc ...

(compare, for example, the

Vaishya Vaishya (Sanskrit: वैश्य, ''vaiśya'') is one of the four Varna (Hinduism), varnas of the Hinduism, Hindu social order in India. Vaishyas are classed third in the order of caste hierarchy. The occupation of Vaishyas consists mainly ...

, the traditional merchant caste in Indian society). Between 1300 and 1500, modern accounting, the bill of exchange, and

limited liability Limited liability is a legal status in which a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company or partnership. If a company that provides limited liability to it ...

were invented, and thus the world saw "the first true bankers", who are certainly businesspeople. Around the same time, Europe saw the "emergence of rich merchants." This "rise of the merchant class" came as Europe "needed a middleman" for the first time, and these "burghers" or " bourgeois" were the people who played this role.

Renaissance to Enlightenment: Rise of the capitalist

Europe became the dominant global commercial power in the 16th century, and as Europeans developed new tools for business, new types of "business people" began to use those tools. In this period,

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...

developed and used paper money,

cheque A cheque, or check (American English; see spelling differences) is a document that orders a bank (or credit union) to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The pers ...

s, and

joint-stock companies A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are ...

(and their shares of stock). Developments in actuarial science and

underwriting Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liabili ...

led to insurance. Together, these new tools were used by a new kind of businessperson, the

capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...

. These people owned or financed businesses as investors, but they were not merchants of goods. These capitalists were a major force in the

Industrial Revolution The Industrial Revolution was the transition to new manufacturing processes in Great Britain, continental Europe, and the United States, that occurred during the period from around 1760 to about 1820–1840. This transition included going f ...

. The

Oxford English Dictionary The ''Oxford English Dictionary'' (''OED'') is the first and foundational historical dictionary of the English language, published by Oxford University Press (OUP). It traces the historical development of the English language, providing a com ...

notes the earliest known use of the word "business-men" in 1798, and of "business-man" in 1803. By 1860 the spelling "businessmen" had emerged.

Modern period: Rise of the business magnate

The newest kind of

corporate executive Corporate titles or business titles are given to corporate officers to show what duties and responsibilities they have in the organization. Such titles are used by publicly and privately held for-profit corporations, cooperatives, non-profit or ...

working under a business magnate is the

manager Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities ...

. One of the first true founders of

management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...

profession was Robert Owen (1771–1858). He was also a business magnate in Scotland. He studied the "problems of

productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...

and motivation", and was followed by

Frederick Winslow Taylor Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He was one of the first management consultants. In 1909, Taylor summed up ...

(1856–1915), who was the first person who studied work with the motive to train his staff in the field of

to make them efficient

managers Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...

capable of managing his business. After

World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

, management became popular due to the example of

Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was an American politician who served as the 31st president of the United States from 1929 to 1933 and a member of the Republican Party, holding office during the onset of the Gr ...

and the

Harvard Business School Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA p ...

, which offered degrees in business administration (management) with the motive to develop efficient managers so that business magnates can hire them with the goal to increase productivity of the private establishments business magnates own.

Salary

Salaries for businesspeople vary. The salaries of businesspeople can be as high as

billion Billion is a word for a large number, and it has two distinct definitions: *1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is its only current meaning in English. * 1,000,000,000,000, i. ...

s of

dollar Dollar is the name of more than 20 currencies. They include the Australian dollar, Brunei dollar, Canadian dollar, Hong Kong dollar, Jamaican dollar, Liberian dollar, Namibian dollar, New Taiwan dollar, New Zealand dollar, Singapore dollar, U ...

s per year. For example, the

owner Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...

Microsoft Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...

Bill Gates William Henry Gates III (born October 28, 1955) is an American business magnate and philanthropist. He is a co-founder of Microsoft, along with his late childhood friend Paul Allen. During his career at Microsoft, Gates held the positions ...

makes $4 billion per year. The high salaries which businesspeople earn have often been a source of criticism from many who believe they are paid excessively.

Entrepreneurship

Entrepreneurship Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values t ...

is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones. An entrepreneur is a person who sets up a business or businesses.

References

{{Authority control Business occupations * Entrepreneurship