Final answer:
In a market economy, the business owner or entrepreneur takes on the financial risk of starting a new business by using personal funds or borrowing money. Angel investors may also provide funding in exchange for ownership in the business.
Step-by-step explanation:
In a market economy, the business owner or entrepreneur takes on the financial risk of starting a new business. They may use their personal savings or borrow money to cover the startup costs. Additionally, angel investors, who are wealthy individuals, may invest their own money in exchange for ownership in the business at an early development stage.
Thus, an entrepreneur is an individual who initiates and manages a business venture, taking on financial risks to achieve success. They identify opportunities, innovate, organize resources, and make strategic decisions to create and grow enterprises. Entrepreneurs play a vital role in driving economic development and fostering innovation.