The Different Types of Entrepreneurship
What is entrepreneurship?
Entrepreneurship as we have come to know goes back 20,000 years according to many records. And like other things with just lofty history, the definition of the term has been debated countless times. However, In context or summary of modern day entrepreneurship, when you decide and are willing to start a new business, bearing its risks to make a profit, you have engaged in entrepreneurship or at least one of the types of entrepreneurship.Essentially, the route to self-employment is shrouded in uncertainty and powered by the entrepreneur's drive, ingenuity, and optimism. And while it opens the part to work flexibility and more profit, its uncertainty and sheer workload makes it a dreaded yet highly profiting venture.Types of entrepreneurship
We can only have the various types of entrepreneurship based on the types of entrepreneurs there are. Therefore, here are the five types of entrepreneurship you should know about - to help you identify where you are or choose where you want to be.The startup
The startup as a type of entrepreneurship depends on and works with raw talent. Essentially, it is relatively demanding and often requires extensive investment capital to drive the project. In addition, startups function by attracting investors who know how to support original thinkers. As a result, entrepreneurs in this niche focus on scalable businesses and experimental models, causing them to be more interested in hiring the most intelligent people as employees for their unique talent. An excellent example is the beginning of Uber and how it ultimately expanded and took the taxi business to a different level.Scalable startup entrepreneurs have great dreams, focused on creative ideas that will allow them to grow their firm and make as much profit as possible as rapidly as feasible.Most scalable startup founders:
- Identify a market gap and concentrate on filling it.
- Attempt to build a scalable firm that is poised to grow and service a broader market.
- Have strong margins and a lean and agile team ready to pivot as the firm expands.
The small business
Those who run small businesses have no intention to expand and create other firms. Essentially, they are subsistence businesses that make a small descent living and usually made up of family members and friends. Typical examples of small businesses are local restaurants, grocery shops, hairdressers, dry cleaners, etc. Usually, funding for small businesses comes from small loans and contributions from family and friends.Small business owners are focused on starting and running their own company, either on their own or with the assistance of family members. This category of types of entrepreneurs includes numerous small-business owners, as well as consultants.Owners of small businesses:
- Attempt to earn a livelihood through their commercial operations and produce enough profit to sustain their family and way of life.
- Normally, they are not concerned with quick development and expansion.
- Instead of seeking investors, companies may decide to obtain a company loan for funding.
Big business entrepreneurship
These are types of entrepreneurship that build on and improve the products and services of their smaller counterparts. Essentially, big businesses have a predefined lifecycle. They thrive on the new and innovative products they can offer, such as adding more unique features to boost their existing products or services like incorporating technological advancement, etc.Similarly, unlike brick-and-mortar stores, most businesses are beginning to incorporate online invoices to phase out the regular paper invoices for clients. Also, generating online paystubs makes financial documentation for employers a lot easier due to online pay stub generators. As a result, there is better accountability, making for more business expansion due to improved operational processes. Many businesses already use these business models to automate and save cost and you should too.Some firms expand organically over time, whereas large company entrepreneurship attempts to build a huge company from an existing business model.Entrepreneurship in large corporations:
- focuses on profit generation, allowing the company owner to maintain their lifestyle while also supporting the business's continuous growth
- Aims to expand the existing company model, which separates it from innovative ownership, which strives to provide an entirely new idea to the market.
The innovative types of entrepreneurship
This type of entrepreneurship forms the league of pacesetters for the industrial world. Essentially, entrepreneurs in this category are passionate about new ideas and inventions to convert into viable businesses. Innovative entrepreneurs start firms with the goal of bringing entirely new items or ideas to market.- Innovative entrepreneurs are creative problem solvers who develop new goods, services, and solutions to better the lives of their clients.
- Are frequently motivated by a global goal or vision
- Consider how their concept or product will affect society.
- Disruptors are those who can shift the business environment in their field or produce new technologies that have an impact on society.
The social type of entrepreneurship
They are primarily solution-oriented businesses whose primary focus is solving social problems and less profit-making. Generally, most nonprofit organizations fit into this entrepreneurial category. They seek to solve the issues of society like increasing access to food, education, and other finer things of life.Social entrepreneurs, motivated by a desire to give back to the society, attempt to provide answers to significant societal problems, which may include:- Reducing societal inequality
- Taking an interest in environmental issues
- Economic development that is more egalitarian