What is entrepreneurship? — Often times when the word entrepreneurship is mentioned, we usually associate it with people that are into business. Well, you are right. However, entrepreneurship is much more than that. It’s a vast field with numerous concepts and areas. So, if you want to know what it takes to start and manage a business, this article is for you. In this article, we will explore what is entrepreneurship, the types of entrepreneurship, and more.
What Is Entrepreneurship?
Entrepreneurship can be defined as the process of starting a business to earn profit or meet social demands. It can also be referred to as the process of creating, developing, and managing a venture or business with the aim of making a profit.
While an entrepreneur is a person that creates a business model and obtains the capital that will be enough to start and sustain that business; the person will be in charge of the business’s failure and success. You can safely call an entrepreneur a risk taker, a creator, an innovator, and a professional manager that establishes and manages a business. Having said that, let’s proceed by looking at the different kinds of entrepreneurship.
Types Of Entrepreneurship
There are several types of entrepreneurship. However, here, we will discuss only the five essential types.
1. Social entrepreneurship
Social entrepreneurship is a type of entrepreneurship that allows you to give back to the community. These people usually look for ways to solve social problems. Some solutions they provide include addressing social issues and inequality, engaging with other people to discover economic problems, supporting an equal environment, and many more. Some social entrepreneurs usually begin with a nonprofit organization, while others build a profitable organization that helps them give back to their community. One of the beautiful aspects of social entrepreneurship is that these kinds of people have a massive vision towards creating betterment for the world; their goals are centered on their company’s mission focusing on ways to provide social changes. They always put social changes as their priority rather than profit. Thus they differ from other types of entrepreneurship that we will discuss soon.
2. Scalable startup entrepreneurship
The dream of scalable startup entrepreneurship is usually big; they focus on innovative ideas to help them expand their business and earn profit quickly. What most scalable startup entrepreneurs do generally is to look for gaps in the market and ways they can fill them, and they are ready to create a stable market that will serve the bigger market. They usually have a significant profit incentive that helps them attract the attention of venture capitalists. This is because most venture capitalists favor scalable startup entrepreneurship since they can get a return on investment quickly.
3. Small business entrepreneurship
Small business entrepreneurship is unlike scalable startup entrepreneurship, which requires venture capitalists to invest Instead, this is a business that people start and focus on running it successfully. They mostly do it alone or sometimes with the help of their family members. Some known examples of such companies are saloon shops, small chops shops, coffee shops, and more. These people are not looking for huge profits. Instead, they do business to make a living and earn enough money to help their family and continue their lifestyle. Sometimes, they look for a business loan to start the business; they usually have the potential to grow and become a large-scale business. They can also be bought by another big company or managed by a top-notch entrepreneur in the family.
3. Large company entrepreneurship
Most large companies started as small businesses that grew eventually. These companies’ goal is to earn profit so they can sustain their family and lifestyle, they also focus on continuous growth. Where necessary, they will acquire small businesses, get new customers and meet the market demands.
4. Innovation entrepreneurship
From the name, innovation entrepreneurship usually looks for ways to create new businesses, bring new products to the market, or new ideas. These kinds of entrepreneurs are problem solvers. However, they differ from social entrepreneurs; In contrast, social entrepreneurship looks for ways to bring changes to the community and isn’t after profit, while innovative entrepreneurship also seeks solutions to problems. Still, their main aim is to earn profit. Sometimes, innovation entrepreneurs are called disruptors because they can change the entire landscape in their industry and even develop new technology that can change the culture.
Characteristics Of An Entrepreneur
Starting a company is a big decision; we can safely say this is not an idea for the weak, especially since it’s related to risk-taking. Sometimes, you may do everything right but external forces can come and damage everything for you. So below are some characteristics that every entrepreneur should have.
The number one characteristic of a successful entrepreneur is self-discipline. You must do it even if you don’t want to or don’t feel like doing it. If you work daily, then you must have the self-discipline to motivate yourself and wake up early to catch you with your schedules.
Another characteristic of an entrepreneur is curiosity; they are always willing to learn new knowledge, ask questions, seeking opportunities that can help them grow their business. Successful entrepreneurs don’t depend on their existing ability; they are welcoming towards new things and are ready to shift their mindset to something better, one of their approaches towards the world is their curiosity to learn new knowledge.
This is a vital force that helps most startup entrepreneurs. One thing that people fail to understand is that everybody is creative in their way; you need a trigger or method to learn how to activate your creative sense. A good entrepreneur is always on the run to find ways to solve problems and deliver services even with limited resources. They seek inspiration in many places and use creativity to achieve their desires. To find your creativity, find things that support creativity, like music, meditation, going to new places, and meeting new people.
4. They are willing to try new things
Entrepreneurship is all about risk-taking; if you are not a risk-taker or unwilling to try new things, then perhaps entrepreneurship isn’t for you. You will always encounter new tasks that are beyond your thinking and skills. Aside from being creative, you must learn to think outside the box and take a challenge from your experience and network. Prepare to watch yourself fail, don’t always expect success, especially if it’s your first attempt. If things go wrong, sit down and think of the areas in which you can make adjustments that will lead to success; if possible, show your idea to the people you trust, research the market, and stay updated on the latest news regarding your vision.
You can successfully start a business and profit at first, but do you know the only thing that can hold you is your honesty? Honesty is a character that will help you build a reputation in the industry; you will become a true leader that everybody respect and people will be more than willing to work with you.
How To Become An Entrepreneur
Look at the seven steps you need to establish your dream business.
1. Find a business idea
For you to want to start a business, you should already have a business idea; if you don’t, then it’s time to look for one. With the business idea, you will also identify the purpose of your business.
2. Develop the product
Once you have your business idea, it’s time to develop the product; think if you want a handmade product or wish to purchase and sell it.
3. Validate your products
The next step is to ensure that the product you develop will sell, search the market to ensure it is what people are looking for and can solve their problem with your product.
4. Write your business plan
Although you can choose this as your first step when starting a business, it’s still not wrong to put it as the fourth. Write your business plan, which should essentially contain everything about your business; these include the prices of the product, your business model, etc.
5. Secure your capital
After writing the business plan, your next step is to get your capital. You can get funding from your pockets, get loans, get from venture capitalists, etc.
6. Launch the business
After following the above steps, it’s time to launch your business and get your first sales. Ensure to create awareness for your products before launching. This is to attract customers and clients. You should also learn how to manage your business and be open to learning new ideas.
Entrepreneurship involves developing a business idea and starting that business so you can make a profit. There are different types of entrepreneurship, including social entrepreneurship, scalable startup entrepreneurship, small company entrepreneurship, large company entrepreneurship, innovation entrepreneurship, and many more. Before becoming an entrepreneur, you must possess some vital characteristics like honesty, willingness to try new things, creativity, and more.
Frequently Asked Questions
What are the risks of entrepreneurship?
The risks of entrepreneurship include financial losses, market competition, regulatory challenges, and uncertainties in business environments.
What are the potential rewards of entrepreneurship?
Potential rewards for successful entrepreneurship can include financial rewards, job creation, economic growth, and societal impact.
What are the stages of entrepreneurship?
The stages of entrepreneurship include idea generation, business planning, market research, securing financing, setting up operations, marketing, etc.
Can anyone become an entrepreneur?
Yes, anyone with an idea, determination, and willingness to take on risks can become an entrepreneur.
What challenges do entrepreneurs face?
Entrepreneurs may face challenges such as securing financing, managing cash flow, building a customer base, navigating legal and regulatory requirements, and dealing with market competition.
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