Are you an entrepreneur or an employee? No matter what kind of business you’re trying to start, knowing where you and your business fit into the world are crucial. This guide describes five types of entrepreneurship and how they view business differently.
What is entrepreneurship?
You might have come across different types of entrepreneurs. So, who are they, or what is entrepreneurship?
Entrepreneurship is simply the act of starting a business from scratch. Intending to make money, entrepreneurs come up with ideas and are willing to take risks, such as investing in a new product or company that’s had little to no market traction. Entrepreneurship teaches people how to think outside the box while they’re trying to figure out how they can make a profit.
Entrepreneurship is an essential and powerful tool for building successful businesses. Whether you’re looking to start your own business and make a difference, or want to help others do just that, entrepreneurship can be a powerful force in your life — but only if you take it seriously!
Entrepreneurship is difficult, but it’s not impossible. From the perspective of a businessperson, the key is to develop an innovation that fits into your market and that could be distinguished from other similar products. Innovation comes in many shapes and sizes – product or service, format, or method of delivery – but ultimately you have to think differently to succeed.
Different Entrepreneurship Types
Different types of entrepreneurship are discussed in detail below:
1. Social entrepreneurship
Social entrepreneurship is a way of combining business, compassion, and making money. It means developing solutions to social problems. Some examples of solutions might be promoting education and training, helping with fundraising or support groups, or offering health services and products. Often, this involves working with nonprofits. Social entrepreneurs can work alone or with others to implement their ideas, sometimes in a nonprofit organization or a for-profit company. In some cases, the social entrepreneur could be an individual who creates a business that uses the funding they receive from donations made by individuals concerned about a significant social problem.
Social entrepreneurs have a strong global vision and their financial goals centre on creating social change. This creates a unique measurement for success that differs from operational markers for scalable businesses.
Real-world Example – Since it was founded in 1977 by Dr. Ibrahim Abouleish, SEKEM has developed a range of medicinal, herbal, and aesthetically focused products that fulfill the requirements of its customers. In addition to farming biodynamic farms and producing educational programs for children, SEKEM also established a healthcare center devoted to holistic medicine.
You can read more about the basics of social entrepreneurship here
2. Innovation and entrepreneurship
Every entrepreneur is a mission-driven person. They dream of improving the world, hope to solve existing problems, and commit to bringing new products and services to market. Innovative Entrepreneurs often push boundaries by creating completely new products or services that improve lives. That said, innovation needs many components, including vision, strategy, and business models. To grow your business, you must understand each of these three areas to steer your company in the right direction. These types of businesses tend to have a great deal of trial and error and can be pretty risky; they may fail in the beginning stages, but eventually, succeed because they constantly look for ways to improve their ideas.
Real-world Example – For a company that is synonymous with innovation and creativity, Nestlé has certainly delivered on the front of these concepts. Nestlé is one of the world’s leading food, beverage and ingredients companies. It has been making food since 1866 and is trusted by consumers all over the world. Nestlé offers many outstanding examples of innovative business practices, including in-house innovation campaigns aimed at reducing logistics obstacles and delivering products to consumers as soon as possible.
3. Big business entrepreneurship
A prominent company entrepreneur has a different focus from an innovative small business owner. The focus of a well-known company entrepreneur is to generate profit, sustain the lifestyle, and support the continued growth of the business. As companies grow and evolve, acquiring an existing company offering innovative services that complement its offerings may be required. This allows you to reach new markets or expand into areas where your services are not currently offered.
Also, when transitioning from an entrepreneur to a significant company entrepreneur, it is essential to consider the same sorts of issues, such as how to support your lifestyle and pay employees. It does not matter what business you find yourself in, but rather how the size of your business contributes to that goal. Large companies may want to build their business model around particular locations, which may require specific expertise in that country’s policies and laws.
Real-world Example – In 2006, Disney bought animation studio Pixar and then proceeded to cash in on the success of other blockbuster hits from Pixar. WALL-E, Coco, Up, Brave, and other sequels to Toy Story have all been huge successes at the box office for Disney.
4. Small business entrepreneurship
As the name suggests, small business entrepreneurship is about starting and operating your own business. Small business entrepreneurs are typically focused on making a living from their business activities and generating enough profit to support their families and lifestyle.
Small business entrepreneurship is seen as the most socially just economy we have. Small businesses generate more jobs and provide better wages than large corporations, providing an opportunity for new entrepreneurs. These small businesses also offer the most economical option for women who face barriers such as low corporate capital and limited access to loans.
Real-world Example – Personal training is a form of small business entrepreneurship that’s booming. Modern culture pushes people to look their best, and that’s where the demand for personal trainers comes from. Most personal trainers receive state certification in their field and have gone through rigorous training to work with key muscle groups.
You can learn more about – Entrepreneurship and Small Business
5. Scalable entrepreneurship
Scalable startups are those that can serve a fraction of a larger market but, at the same time, generate a significant profit. This is especially true for scalable entrepreneurship, where starting a business with a scalable model means creating an idea that can be sold and expanded into many new markets.
Scalable entrepreneurship is about prioritizing growth over profit. A high-margin, lean, agile staff prepared for quick pivots is another essential trait for scalable businesses. While scaling a business can be challenging, it’s worth it if the reward is an enterprise with a large customer base and high margins. When entrepreneurs focus on scalability, their businesses can increase and make them more prosperous and faster.
Real-world Example – Uber was originally conceived as a way to revolutionize the taxi industry and, after attracting investment, the company quickly became one of the most popular rideshare programs in the world.
You can read more about Scaling your Startup
What kind of entrepreneur do you want to be?
The road to becoming an entrepreneur can be just as intriguing as the success it can eventually lead to. You’ll have an opportunity to create your version of success and make whatever it is you’re hoping to accomplish in the end happen. But before you jump in with both feet, you need a vision and a plan. If you don’t know what type of business you want or your goal, then you should take some time to figure that out first. Then get everything down on paper so you know what route you’re going to take. It may mean that your fledgling company has a better chance of success.
The best entrepreneurs have a vision and a plan, which is why setting aside time to think things over and sketch out your idea or project plan is so important. If you’re still not sure whether entrepreneurship is right for you, read this article over again to get advice on how to go about starting your business venture.
With this, we hope all your queries, such as “what is entrepreneurship” and “what are the types of entrepreneurship”, are clear. For more details on startup ideas, one can also rely upon the Startup India Gov website and Best Ideation & Validation Tools For Startups.
Also, you can also have a look at other Seekho series: