Whether you have decided to fulfill a specific need of society or to work for yourself you have to start your own business. For this business to be successful and to gain customers, it has to be properly managed. This process is called entrepreneurship.
The person who starts the business and helps to advance it by creating original and innovative ideas is known as an entrepreneur.
What is entrepreneurship?
The definition of entrepreneurship is a process by which people or a group of people start a business. This act includes creating and managing new businesses. Entrepreneurship aims to solve large-scale problems and affect social change with the hope of making a profit.
What is an entrepreneur?
As we mentioned earlier the person who runs a business is called an entrepreneur. The entrepreneur can either improve upon existing products or services or bring new ones to the market.
There are different ways for entrepreneurs to achieve success. For some of them, this can be possible with hard work while others rely on finances to help them get there.
Every entrepreneur runs their business based on their personality and skills to create their business vision. Since there are different businesses, entrepreneurship is divided into several types.
What are the types of entrepreneurship?
There are four most common types of entrepreneurship such as:
Small business
So as the name suggests small business entrepreneurship refers to small business with sole founders or partnerships. They usually invest their own money to start or sustain their company. This could be for example every local grocery shop, a retail shop, or a restaurant. As the business grows small entrepreneurship can turn into large business entrepreneurship.
Large business
Some large business entrepreneurs grow over time as they create new products. While others combine several existing smaller businesses. In large business entrepreneurship, companies keep innovating and providing customers with new products or services.
Alphabet (Google) is an example of entrepreneurship that not only became large by owning several other companies but has also started a few of its own.
Scalable startup
This type of entrepreneurship aims to find gaps in the market and create suitable solutions. They quickly achieve their goals by convincing investors that will allow them to grow, scale up, and earn profit.
Social entrepreneurship
Social entrepreneurship aims to create a positive change in the world by developing new products and services. Their goal is to help people without gaining a profit out of it.
