Types of Entrepreneurship: Objective and Characteristics

Entrepreneurship is the process of planning, starting and operating a business venture. Based on the objective of what an owner wants from a business, they choose among the different types of entrepreneurship.

In this article, we will be discussing types of entrepreneurship, characteristics, and principles on which these ventures are based.

Table of Contents

• What is Entrepreneurship?
• Features of a successful entrepreneurship
• Principles of entrepreneurship
• Types of entrepreneurship
• Need for types of entrepreneurship

What is Entrepreneurship?

An entrepreneur is a working individual who builds new businesses on his own. Such a person is an innovator who comes in with a new ideology and the ability to take the initiative using his skillset. The process through which different types of entrepreneurs set up businesses is known as entrepreneurship. It is integral to production, natural resources, capital, and labour. Using these resources, products and services are provided to consumers. 

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Features of Successful Entrepreneurship

The following characteristics must be reflected in entrepreneurship for it to be successful.

• Innovative: For any entrepreneurship’s success, innovation is the most fundamental ingredient. If an entrepreneur starts an innovative business, the probability of its success is more than a business based on a generic idea. 
• Risk appetite: Do note that the chances of failure are also equivalent to success in such cases. Due to this probability, business owners must have risk tolerance. They should have an understanding of what they are getting into and how much time it may take to generate profits from the business. 
• Future vision: Entrepreneurship should be based on strong visions for the future. There should be a vision for direction and possibilities in the future. This makes the business more flexible to changes in times. /
• Resources: There should be the availability of sufficient resources for entrepreneurship to flourish and operate successfully. 
• Knowledge of the industry: Entrepreneurs must have detailed knowledge about the industry in which they are establishing the business. This allows them the ability to strategize and manage their operations. 

Principles of Entrepreneurship

The basic principles of entrepreneurship are:

• Planning a business: While launching a startup, you need to smartly build strategies for establishing the startup. This involves building a vision, assessing financial risks, gathering team members, and planning out a contingency plan. Without a proper plan, a business is likely to face losses and failures.
• Starting a business: After planning the administration and management of the business, entrepreneurs can start the business. To start a business venture, owners will have to first register the company and complete legal formalities. They will also need to have a space to start the business operation. 
• Operating a business: Once this entrepreneurial venture has been brought legally into existence, it will need capital to fund operations. Entrepreneurs can either bootstrap or invest venture capital in the business. After the business has its working capital, a team must be built, logistics should be managed and processes must be planned.

Types of Entreprenuership

We have already discussed the need for entrepreneurship. In this section, we will be discussing the following entrepreneurship types:

1. Small Business Entrepreneurship: These entrepreneurs start and run their small businesses. They typically aim for steady income rather than rapid growth or large-scale expansion.
2. Scalable Startup Entrepreneurship: These entrepreneurs create businesses with high growth potential. They often seek venture capital to disrupt markets or create new ones.
3. Large Company Entrepreneurship (Intrapreneurship): Employees within large companies who develop innovative products or services. They leverage the resources of their organization to bring new ideas to market.
4. Social Entrepreneurship: Entrepreneurs are those who create businesses to solve social problems or benefit society. Their primary goal is to make a positive impact rather than maximize profits.
5. Innovative Entrepreneurship: These entrepreneurs focus on creating entirely new products or services. They often work in cutting-edge fields and aim to revolutionize industries.
6. Hustler Entrepreneurship: Entrepreneurs start with limited resources but compensate with hard work and perseverance. They often bootstrap their businesses and wear many hats in the early stages.
7. Researcher Entrepreneurship: These entrepreneurs base their businesses on extensive research and development. They often work in scientific or technological fields, turning academic knowledge into commercial products.
8. Buyer Entrepreneurship: Entrepreneurs who purchase existing businesses intending to improve and grow them. They may look for undervalued or underperforming companies to acquire and transform.
9. Imitative Entrepreneurship: These entrepreneurs copy successful business models or products from other markets. They often adapt existing ideas to new geographical areas or customer segments.
10. Franchise Entrepreneurship: Entrepreneurs who buy the rights to operate a branch of an established business. They benefit from a proven business model and brand recognition while maintaining some autonomy.
11. Digital Entrepreneurship: Entrepreneurs who create and operate businesses primarily in the digital space. They often focus on e-commerce, digital products, or online services.
12. Serial Entrepreneurship: These individuals repeatedly start new businesses, often running multiple ventures simultaneously. They enjoy the startup process and are skilled at identifying new opportunities.

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Need for Types of Entrepreneurship

There are several advantages of entrepreneurship which makes it is very significant:

• Brings change: Innovation is one of the most unique aspects of any entrepreneurship. Innovative entrepreneurs have the quality of leadership. through which they introduce new technologies and trends. These help in changing the way we lead our lives. 
• Facilitates development: Successful entrepreneurship leads to changes in our society, ultimately leading to holistic development and growth of people, technology, and processes. 
• Improves your lifestyle: Entrepreneurships help improve and ease the way we lead our lives. This ultimately helps in improving our standard of living.
• Job opportunities: As more businesses grow and flourish, job opportunities are created. This generates employment for skilled as well as unskilled labours. 

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Conclusion

Entrepreneurship is the process of building a business from scratch. Based on risk tolerance and capacity, entrepreneurs should choose a type that aligns with their future goals. Once entrepreneurs have decided their direction, they should start planning the business. The ultimate goal should not only be about making profits but also about serving its consumers with satisfaction.