It is an astonishing fact that today, there are around half a billion entrepreneurs present in the world. This means that out of roughly every 13 people, one is starting their own business. The dynamics of entrepreneurship has been changing a lot over the years. And it is undoubtedly not the same as it was years ago. Today, no matter which country you visit, you will hear a lot about entrepreneurship. There are many types of entrepreneurship for people to choose form.
Entrepreneurship refers to the process of ideating, developing, launching, and then running a business venture of your own along with all the risks and returns that come with it. It is essential for the overall economic development of the country as well as the world. And the person who is at the onus of the entrepreneurship is known as an entrepreneur. Starting a new business is not an easy task. 9 out of 10 start-ups fail before they even see the light of the day. But since everyone wants to become independent these days, many people are venturing into the same.
But entrepreneurship does not have only one meaning to it. There are different types of entrepreneurship and all of them have different meanings.
Two Prominent Types Of Entrepreneurship
· Small Business Entrepreneurship: Though most of the people think that they are running a large business, most of the companies come under the small business category. In the US, approximately 99.7% of all the businesses are a small business. These are astonishing numbers which prove a lot of things. These are businesses which make a small margin, which is enough to support the families of the owner and the employees. They do not have angel investors or venture capitalists behind them. These businesses generally get funds from friends and relatives. The examples of such companies are salons, grocery stores, and others.
· Scalable Entrepreneurship: In this type, the owners think that the vision which they have is going to change the market. They may start small, but they do have the ability to grow big. Also, they have usually venture capitalists behind them. They can make high profits if they can get their business model right. But the risk in this form of entrepreneurship is exceptionally high. Google, Facebook, Amazon all fall under this category.
The Other Types
· Large Company Entrepreneurship: These are companies which focus on innovation. They try to bring in new products in the market which are the variants of their core products. Such products are introduced to satisfy the changing needs of customers. The changing technology might also be a reason behind this. Companies like Samsung, Tesla, IBM, fall under this category.
· Social Entrepreneurship: The final type of entrepreneurship in which the motive is to solve a problem of society. Today there are many social organizations which are coming into the limelight for their contribution to make the world a better place. The only mission which they have is they want to make the world a better place to live. They can be a non-profit organization or profit organization or a mix of both. Safepoint Trust is one example of this category.