Last updated on April 6th, 2024 at 02:08 am
In this article we will discuss the types of entrepreneurship. We are in an entrepreneurial era, we must be ware about what different types of entrepreneurship are there and on what basis are they distinguished on.
Before we learn about what are the types of entrepreneurship, we should discuss what is an entrepreneur.
Who is an Entrepreneur?
Entrepreneur is a business owner. Entrepreneurs are the creative and innovative individuals who open up their own business to provide the world with their products and services. Entrepreneurs are different from Intrapreneurs, who, unlike entrepreneurs, work for an organization.
An Entrepreneur is completely responsible for their business. Entrepreneur it’s the one who invests in the business and bears the risk for failure. Entrepreneurs are the people who are inspired by ideas of their own, they are passionate, motivated and focused individuals who are willing to risk in order to start their own business.
Entrepreneurs are the new creative and innovative minds that enter the market with a new idea of their own. They can be said as the game changers, the one who bring in new products, technology, service, techniques in the market.
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Types of Entrepreneurship
Entrepreneurship can be defined into several types of entrepreneurship based on the type of business, the jobs, the knowledge required and the vision of the business. Let us study these types of entrepreneurship in detail.
Small-Scale Business
The First of the Types of Entrepreneurship is a small-scale business. A small-scale business entrepreneurship is a small business such as a shop, salon, electrician, etc. These entrepreneurs do not aim to make millions and billions, their ultimate goal is to be able to feed their family.
The scope of their business is usually to be the only shop the localites stop at. The range of business is also extended to the boundaries of the local area, although they wouldn’t say no to outside business. And for capital, these entrepreneurs fund their business by taking loans from people they know or invest their own money.
Start-ups
Those innovative and creative ideas of an Entrepreneur which could bring a change in society, and they wish to turn it into a big dream, those entrepreneurs do start-up methods. The entrepreneurs who start-up a business aim to expand their business throughout the world.
Usually the entrepreneurs who start-up their business want to earn big bucks in a small amount of time on the basis of their unique idea. This idea is inspired by the previous examples of Amazon and Apple.
These entrepreneurs have a strong base. They have substantial knowledge in their domain and they believe their idea is feasible and can bring meaningful change in the society. Another base for these entrepreneurs is their plans and their employees. For fast growth, they hire experts to enhance their chances at growth.
Intrapreneurship
Next in the list of Types of Entrepreneurship is Intrapreneurship. Intrapreneurs are the most distinguished type. These are the individuals who have innovative and creative ideas, but they don’t want to take the risk by putting everything into a new business. Another reason for the existence of Intrapreneurs is because not everyone can afford to invest in a new business.
Intrapreneurship is the concept in which the organization empowers the employees enough so that they can work on their ideas within the organization. The organization sponsors these individuals to carry out their projects individually within the firm. This is a win-win situation for both the parties. At the end, the organization and the Intrapreneur both share the rewards.
For the Intrapreneur, they are the ones who put the time and energy into the project as their part of the investment. The organization provides place, funding and assets for the project, this is the investment the organization does from their side.
The reason organizations promote Intrapreneurship is because they want to be at the top of the market. And in this era, where innovation and creativity is the leading skill that can change the market, the organization aims to encourage creativity in the workplace to use their potential and help the organization grow.
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Large Company
A large company refers to companies that work on a restricted timeline. The entrepreneurs who start a large company usually get their fundings from both, equity and debts.
A large company is a business that aims to produce a variety of goods, but these goods have a lifespan of about a year. After a year, the existing products are replaced with new, innovative and advanced products so as not to shut the business down and increase the business.
These companies sustain on the basis of adapting the technological, social, political changes and using them to their advantage. They use these changes and innovate their product accordingly and stay in the market.
Social Entrepreneurship
Another in the list of types of entrepreneurship is Social Entrepreneurship. The purpose of the existence of social entrepreneurship is to bring in meaningful change in the society.
Social entrepreneurs identify the complications in society and then aim to change those complications by their methods. These issues could be related to cleanliness, nature, social development, or any other social issues.
The base for such organization is to be ethical and bring ethical changes in the society while also making the society aware about these issues. Such entrepreneurs raise capital from their own pockets.
Imitative Entrepreneurship
As the name suggests, imitative entrepreneurship refers to a business that imitates another, already existing business. These entrepreneurs use their creativity and improvise on the existing business and create their own business.
Although it seems unethical to take someone else’s idea and improvise on it, it’s a smart way. When an entrepreneur decides to imitate an existing product and improvise on it, they are reducing their risks. The risk of experimenting with a new product, whether that product will work or not? Will it be a feasible idea? Will people buy it? What market segment to sell in? All these risks are already eliminated and now you improvise the product with something unique of yours and voila! You have your own line of business of an already profitable business.
Innovative Entrepreneurship
Entrepreneurs, by their very nature, are creative and innovative. An Innovative Entrepreneur refers to the most known type of Entrepreneurship. This is a business where the entrepreneur brings in new products, techniques and technologies.
In this Entrepreneurship, the individual starts the business on their unique and innovative idea about a product or service. They aim to showcase their product and change the old market ways. These entrepreneurs are the ones who keep existing business owners on their toes.
These types of entrepreneurship also have the potential to bring in new changes in the existing technology and techniques of working. Sometimes, the whole base of this entrepreneurship is the new technique of working and the new technology they brought in.
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Purchased Entrepreneurship
Purchased Entrepreneurship is another one of the smart types of entrepreneurship. As you might have understood from the title, a purchased entrepreneurship is a purchased business.
In this, the entrepreneur doesn’t not invest in making his own business from scratch. Instead, the entrepreneur studies the market and purchases a new developing business in which he/she sees the potential to be big.
As the Entrepreneur is buying an already established and known business, the risk automatically reduces. Even though there had to be capital investment in buying a business, a business with less risk and an already functional department is a huge bonus against the capital spent to buy the business.
Researched Entrepreneurship
Researched Entrepreneurship refers to a business established on the basis of comprehensive research. These types of entrepreneurship are more dependent on the knowledge part instead of the product or service they are providing.
These Entrepreneurs research about the product, the market the product or service would be best in, which segment would the be the most profitable, what does this segment require, what research they can conduct to be constantly aware about the product situation in the market, what upcoming technology can they adapt, what are the status of their competitors and so on. Even the basis of the product design, price and market they serve in, is on the basis of the research they did.
The Entrepreneur does a comprehensive research before the launch of the business as well, so as to minimize the risk and possibilities of failure in any aspect of the business.
Online Entrepreneurship
The last type of entrepreneurship is an Online Entrepreneurship. This refers to any type of online business. It could be a website, YouTube content, blogs, trading sites, etc.
These types of entrepreneurship come under digital entrepreneurship. In today’s time, going digital have become a trend. It is an easy and sustainable way for new entrepreneurs to enter the market and share their business outside the local, states and national boundaries.
Aside from the reach this platform offers, many social media companies have started to provide promotional services for such content creators for them to grow fast by investing capital.
The entrepreneurs who have knowledge that could benefit the world, this becomes a perfect opportunity for them. The Individuals who want to sell their products across the whole globe, this is the perfect place.
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FAQ
What are the 4 types of entrepreneurship?
The main 4 types of entrepreneurship are Small-scale Entrepreneurship, large companies, start-ups and Intrapreneurs.
Final Words
There are 10 types of entrepreneurship that a business can categorize into, each having their own style and expertise. Everything depends upon the vision of the owner i.e. entrepreneur. If you are a business owner, an entrepreneur to be precise, what category do you come under? Let us know in the comment box.
I hope this Article about the Types of Entrepreneurship was useful to you. If there are any doubts or suggestions, let me know in the comment box.