4 Types of Entrepreneurs
The right attitude is a collection of abilities that enables people to recognise chances and seize them, to take lessons from their mistakes, and to succeed in spite of whatever obstacles they may encounter. According to research, having an entrepreneurial mindset can increase academic performance and is crucial for coming up with fresh business concepts. Here are the 4 types of entrepreneurship:
Small Business Entrepreneurship
Most new enterprises fall under the category of small business entrepreneurship. The small businesses that fall under this category are included. The amount of money does not necessarily categorize this kind of entrepreneurship.
These companies’ goals can include making a profit or offering top-notch services. E.g., Cash and carry shops, tiny grocery stores, eateries, service providers, etc., are typical examples of small business entrepreneurship.
Normally, from the viewpoint of a founder establishing this chain, it would also include franchisee firms like McDonald’s or KFC under the small business entrepreneurship category. This category also includes individual influencer-based businesses like Instagram influencers and product testers
Funds:
This kind of entrepreneurship typically receives funding from friends and family, bank loans, etc. These kinds of businesses typically do not receive seed money or venture capital.
Pros:
Positive Community i
Self-reporting
Equity
Prestige
Self-esteem
Cons:
Possible income instability
Potential of financial risk
Some uncertainty
Longer working hours
Possible lack of guidance
Scalable Startup Entrepreneurship
Scalable startup entrepreneurship refers to contemporary startup concepts intended for expansion. Small business entrepreneurship and startup differ in their growth strategies.
The most typical startup pattern is to establish a successful company that can be scaled up. Aggressive growth after determining product/market fit is practically required for scalable beginning business.
Uber, Air BnB, and other well-known examples of scalable startup enterprises are provided here. Technology is a crucial but not required component of this type of business due to its ease of scalability. The majority of scalable firms concentrate on global or regional growth. The overarching principle is to start small, prosper, then scale up.
Funds:
Venture capitalists or seed investments are used to finance startups. Initial money can come from one’s own resources, loans, relatives, etc. Scaling, however, typically needs a significant boost, which is given through investment sectors. If you want to establish a business, incubators or accelerators can help you develop a business strategy that will grow.
Pros:
New-Age Working Style
Best Place to explore your Potential
Attractive Benefits
Flexible working hours
Better Utilization of Resources
Cons:
There’s always plenty of work
Risks of Failure
Hard work and pitches for Funding
Low Income
Uncertainty
Large company entrepreneurship
Due to their scale, large businesses find it challenging to keep up with consumer demand. These businesses create specialized initiatives for particular innovative enterprises in order to meet consumer needs.
This concept is comparable to the intrapreneur definition that we looked at in sorts of entrepreneurs. These enormous corporations effectively approach fresh developments as distinct businesses within the larger corporation.
You will need to go through comparable travels whether you are an employee of the corporation or an entrepreneur. Examples include the operations of large corporations like Google.
Examples of these entrepreneurial endeavours include independent projects like Google Glass, self-driving automobiles, etc. Similar like every other business, these ventures have a specified goal, investment, and objectives to meet.
Funds:
One of the main benefits of being an entrepreneur for a big business is that they will support your project. Additionally, you will get access to the clientele. At contrast to an entrepreneur in a startup, you will have less independence and continue to be under the company’s authority.
Pros:
Abundance of resources.
Creating a brand name
Changing the team’s organizational structure.
Promoting development
Encouraging innovation
Maximization of output
Enhancing workplace morale.
Acquiring a competitive edge.
Increased profitability
Cons:
Longer approval processes
Job Safety
Anxiety of failing
Extreme imagination is needed for concepts
Nothing to do, just encouragement
Social Entrepreneurship
Social and environmental causes are at the core of social entrepreneurship. This is a unique form of entrepreneurship because it is not a for-profit company. Instead, social entrepreneurship has a purpose that is close to the entrepreneur’s heart and is designed to have a larger influence.
Although there are some profit models, it uses a similar business plan strategy and resourcing strategies. NGOs, Muhammad Yunus’ microfinance approach, support for vaccine research, education, eradicating poverty, etc. are a few examples. The majority of this social enterprise is founded on a compelling social issue.
Funds:
Donations, charitable organizations, and corporate social responsibility initiatives are funded. Grants and corporate social responsibility initiatives are additional ways that social entrepreneurship is supported.
Pros:
To increase the level of employment steadily
Carrying out social reform
Developing creative and original solutions
Working for yourself
There is no limit to what can be done; society members will assist
Cons:
Lack of funds and support
Requiring a lot of effort to succeed
Social elements will influence one’s ability to succeed.
It’s challenging to win people’ trust.
Keeping accountability is necessary