Four Types of Entrepreneurship
In the world of business, there are four types of entrepreneurship, each separated by a different purpose. These different forms also offer a variety of people, contrasting based on the needs of the company.
Here the four types:
- Small business entrepreneurship
These smaller businesses make up the majority of all companies and employ half of the non-government working class. The distinguishing feature that separates small and large businesses that a small business entrepreneur obtains the role as the everyday manager instead of hiring someone to do the main upkeep for them.
Some examples of these small business entrepreneurship include but are not limited to hairdressers, small markets, plumbers, and electricians. These typically contain locals or family members that work as employees. A larger portion of these small businesses are barely profitable, but this is frequently all the entrepreneur needs, as they are aiming towards being able to provide for a single family.
- Scalable startup entrepreneurship
A scalable startup is one that aims to become an extremely high growth, profitable company but is only just beginning.
This startup model requires external capital and risk in order to create demand and company expansions. To do this, the founders must have a convincing business plan in order to receive large, impacting investments, or another way, (but it depends on the type of startup) is funding the startup with your clients, of course if they have created a good customer development, that means that they are receiving payments from their clients.
With that being said, the main goals of scalable startups is to compete with and replace other enormous successful companies, if possible.
- Large company entrepreneurship
The concept of this type of entrepreneurship refers to the advancement of new opportunities and ideas within larger and already established companies. This development is seen later on in the life of a company.
Some forms of this include creating a new design or product in order to compete with surrounding new technologies and legislation among competitors. Large company entrepreneurship can be seen as an adaption to environment expansions.
Those entrepreneurs who participate in social entrepreneurship are focusing on forming new products and ideas in order to solve social dilemmas. Contrary to the ways that some may think, these companies are not exclusively non-profits, as some of them are also based on profit.
The goal of these companies is to, in their own terms, make the world a better place.
In which of the 4 types of entrepreneurship do you fit?