Entrepreneurs are people who establish a venture around innovation to change the world. Entrepreneurs are innovators capable of taking risks and possess specific skill sets like communication, leadership, business management and technical skills. Entrepreneurship is establishing, developing, organising and managing a business venture while bearing any of its risks to generate profits. As there are different businesses, there are also many types of entrepreneurship.
In this article, we will discuss 12 different types of entrepreneurship and learn about the characteristics of entrepreneurship.
The different types of entrepreneurship
People have different visions, goals, dreams and aspirations for the type of business they want to create. For some, hard work is the success factor and for some having enough capital results in a successful venture. Some entrepreneurs give social good priority over other aspects.
Learning about the type of entrepreneurship a company follows can help you decide whether you can survive their work culture. The type of entrepreneurship affects the working environment and the qualities of the entrepreneur. For example, if you are looking to work in a company that fosters creativity and innovation, applying for a job in imitative or social entrepreneurship will not serve the purpose. For you, the ideal workplace would be companies following technology or innovative entrepreneurship.
Here are 12 different types of entrepreneurship:
1. Small business entrepreneurship
Small businesses represent an overwhelming majority of Indian entrepreneurial ventures. People who establish small business entrepreneurship make profits to support their families and live a modest lifestyle. As small businesses are small and lack the innovative factor, they fail to attract venture capital for smooth running. These people usually fund their ventures themselves or take up loans from friends and family members. The employees are usually local people or family members.
Local hairdressers, grocery shops, milk booths, plumbers, carpenters and small boutiques are part of the small business entrepreneurship.
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2. Large company entrepreneurship
Companies with a finite life cycle display large company entrepreneurship. These companies sustain because of innovation and it is the best choice for advanced professionals who know how to sustain innovation. When you work in a large company, you are likely to be a part of a large C-level executive team. The products these companies offer are different variants around their core product. Small business entrepreneurship witnessing accelerated growth can become large company entrepreneurship in no time. This is also possible when a large company acquires them.
3. Scalable startup entrepreneurship
This type of entrepreneurship starts with a unique idea that can bring a change. From creating a business plan to launching it, scalable startup entrepreneurship recognises what is missing in the market and creates a solution. Such business usually receives funding from venture capitalists who provide funding based on the uniqueness of the idea. They hire specialised employees because they seek rapid expansion and high returns.
4. International entrepreneurship
In international entrepreneurship, entrepreneurs conduct business activities across the Indian national boundaries. This could either be opening a sales office in another country or exporting goods from India to a foreign country. International entrepreneurship is beneficial when the demand for goods and services is declining in the domestic market and the demand arises from the international market. Usually, international entrepreneurs sell products in the Indian market until they reach the maturity stage and then sell them in the foreign market to earn profits.
5. Social entrepreneurship
Social entrepreneurship is a type of entrepreneurship in which entrepreneurs recognise a social problem and tailor their activities to create social value. Such entrepreneurs develop services, solutions or products to solve critical social issues and bring about social change. This social change could be related to environment conservation, animal rights protection or philanthropic activities for the underserved community. The motivating factor of social entrepreneurship is achieving social benefits. Working in a social enterprise means prioritising transformative social change while ensuring financial sustainability.
These organisations use ethical practices such as conscious consumerism and corporate social responsibility to facilitate success. Instead of making profits and earning wealth for the owners, social entrepreneurship aims to make the world a better place to live.
Non-profit organisations are the best social enterprise examples.
6. Environmental entrepreneurship
It is also known as ecopreneurship and green entrepreneurship. Profit generation and a concern for the environment drive the primary goal of such businesses. An ecopreneur adopts highly environmentally responsible business values and practices. They also try to replace the existing product or services with products that are environmentally safe to use. In short, environmental entrepreneurship prioritises the business impact on people and the environment besides profits.
Impact blogging, publishing an audiobook and creating SaaS software are a few examples of environmental entrepreneurship as they protect the environment by not cutting trees.
Technopreneurship is what you get on uniting technology with entrepreneurship. It is also known as technology entrepreneurship. A technopreneur merges entrepreneurial talent and skills with the technical prowess to develop a business that thrives on the intensive use of technology. Technopreneurs undertake calculated risks that have chances of earning profits. In short, these are entrepreneurs who have the ability to revolutionise the prevailing economic conditions and introduce breakthrough products for the customers. The foundation of the products and services of such a business is technology. Such a business prefers to employ creative and technology-savvy people who are passionate about bringing technological change.
8. Hustler entrepreneurship
A hustler entrepreneur is a self-starter motivated by their goals and aspirations to succeed in entrepreneurship. Such people start small and work hard to grow their business. Instead of using money or capital to achieve their business goals, they put in their best efforts. They never wait for opportunities to come because they create opportunities. Hustlers do not have a give-up attitude, have a big risk-taking appetite and are always ready to face challenges.
9. Innovative entrepreneurship
The foundation of innovative entrepreneurship is inventions and new ideas. These entrepreneurs can think about novel ways of doing business and have the potential to turn a new idea into a successful venture. They are business leaders and contribute significantly to the economy. Moreover, such companies strive to make life better by providing products, solutions and services which other companies have not. Innovative entrepreneurship is ambitious and requires significant investment to turn a new idea into a breakthrough service or product.
10. Imitative entrepreneurship
This entrepreneurship mimics or imitates existing business ideas and works hard to improve them. Such companies imitate already functioning products and services in the market, usually under a franchise agreement. Such entrepreneurs have no interest in innovation, though they are ready to work on and improve the existing processes. Imitative entrepreneurship works by adopting current technologies worldwide and modifying their existing technologies to suit the local conditions. Fast food companies and multinational conglomerate companies are the best examples of enterprises running on imitative entrepreneurship.
11. Researcher entrepreneurship
Researchers are those who conduct in-depth research on the market and opportunities before launching their business. Such entrepreneurs believe that with the right set of information and preparation, they have a higher chance of achieving success in their entrepreneurial business. Rather than their instinct, they rely on facts, data and logic. Before launching their business, they require a detailed plan and in-depth report of the research findings to minimise the probability of failure.
Cyberpreneurs or cyber entrepreneurs are people who leverage the benefits of information technology to do business. They come up with new ideas to provide products and services to customers via the internet. These people understand the digital age and remove the hassle of going to a physical store. Such entrepreneurship exists only online and is known as a virtual business.
Ecommerce stores and over-the-top (OTT) entertainment platforms fall in the category of cyberpreneurship.
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Characteristics of entrepreneurship
Here are a few characteristics of entrepreneurship:
- Creativity and innovation: Entrepreneurship is about coming up with new and creative ideas and implementing them to achieve substantial profits. For example, service innovation could be coming up with technologies to reduce cost and increase productivity.
- Risk-taking ability: The willingness to bear risk is the essential characteristic of entrepreneurship. Risk occurs when you implement a new idea and it fails. Entrepreneurs take calculated risks because they enjoy the challenges that come up with implementing a new idea.
- Profit-making: Except for social entrepreneurship, all other types of entrepreneurship work with the sole aim of making a profit. It is the reward that entrepreneurs get for taking a risk with a new idea.
- Economic activity: Entrepreneurship involves creating, managing and running an organisation. Moreover, it generates employment and ensures optimum utilisation of resources to earn the maximum profit.