A businessperson, also referred to as a businessman or businesswoman, is an individual who has founded, owns, or holds shares in (including as an

angel investor An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital to a business or businesses, including startups, usually in exchange for convertible de ...

) a private-sector company. A businessperson undertakes activities (commercial or industrial) to generate cash flow, sales, and revenue by using a combination of

human Humans (''Homo sapiens'') or modern humans are the most common and widespread species of primate, and the last surviving species of the genus ''Homo''. They are Hominidae, great apes characterized by their Prehistory of nakedness and clothing ...

, financial, intellectual, and physical capital to fuel economic development and growth.

History

Medieval period: Rise of the merchant class

Merchants emerged as a social class in medieval Italy. Between 1300 and 1500, modern accounting, the

bill of exchange A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document. More specifically, it is a document contemplated by or consisting of a ...

, and

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

were invented, and thus, the world saw "the first true bankers", who were 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 The bourgeoisie ( , ) are a class of business owners, merchants and wealthy people, in general, which emerged in the Late Middle Ages, originally as a "middle class" between the peasantry and Aristocracy (class), aristocracy. They are tradition ...

" were the people who played this role.

Renaissance to Enlightenment: Rise of the capitalist

Europe became the dominant global

commercial power Economic power refers to the ability of countries, businesses or individuals to make decisions on their own that benefit them. Scholars of international relations also refer to the economic power of a country as a factor influencing its power in ...

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 developed and used paper money, cheques, and joint-stock companies (and their shares of capital stock). Developments in actuarial science and underwriting led to insurance. Together, these new tools were used by a new kind of businessperson, the capitalist. 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, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...

. The

Oxford English Dictionary The ''Oxford English Dictionary'' (''OED'') is the principal historical dictionary of the English language, published by Oxford University Press (OUP), a University of Oxford publishing house. The dictionary, which published its first editio ...

reports the earliest known use of the word "business-men" in 1798, and of "business-man" in 1803. By 1860, the spelling "businessmen" had emerged. Merriam Webster reports the earliest known use of the word "businesswoman" in 1827.

Modern period: Rise of the business magnate

Frank-carr-businessperson-common-history

The newest kind of corporate executive working under a business magnate is the manager. One of the first true founders of the management profession was Robert Owen (1771–1858). He was also a business magnate in Scotland. He studied the "problems of productivity and

motivation Motivation is an mental state, internal state that propels individuals to engage in goal-directed behavior. It is often understood as a force that explains why people or animals initiate, continue, or terminate a certain behavior at a particul ...

", and was followed by Frederick Winslow Taylor (1856–1915), who was the first person who studied work with the motive to train his staff in the field of management to make them efficient managers capable of managing his business. After

World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...

, management became popular due to the example of

Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was the 31st president of the United States, serving from 1929 to 1933. A wealthy mining engineer before his presidency, Hoover led the wartime Commission for Relief in Belgium and ...

and the Harvard Business School, which offered degrees in business administration (management) with the motive to develop efficient managers so that business magnates could 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 billions of dollars per year. For example, the owner of

Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...

, Bill Gates 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

An entrepreneur is a person who sets up a business or multiple businesses ( serial entrepreneur).

Entrepreneurship Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones. An entrepreneu ...

may be defined as the creation or extraction of economic value. It is generally thought to embrace risks beyond what is normally encountered in starting a business. Its motivation can include other values than simply economic ones. In general usage, because the distinction is not clear-cut, the term 'entrepreneur' may be used as a (self-)promoting euphemism for 'businessperson', or it may serve to objectively indicate particular passion and risk-taking in a business field. Still, the distinction is only one by degrees.

References

{{Authority control Business occupations * Entrepreneurship