What Are the 4 Types of Entrepreneurship?

Millions of startups have been launched since 2019 by different entrepreneurs. Although the statistics are not always positive, with nine out of 10 startups failing, this hasn't stopped entrepreneurs from starting a business these days.

There are different reasons why startups fail, from insufficient funds to a wrong perspective. Before making a decision about what type of business you want to start, you must first know what type of entrepreneur you are going to be because it will help you set your goals.

In this blog, we discuss the four types of entrepreneurship and give some examples for each.

1.Small Business Entrepreneurship

Most startups are in the small business entrepreneurship arena. A small business can be any restaurant, retail store, or company launched by a founder, without the intention of converting the business into a franchise or chain.

This category of business comprises small businesses such as small grocery stores, service providers, or restaurants. Additionally, influencers who work on social media such as Instagram or YouTube and product testers are also considered small businesses.

2. Large Business Entrepreneurship

This entrepreneurship model is distinguished by creating a new business entity within an existing company, such as a new product line or division, rather than building a new business from scratch.

Entrepreneurs in large companies seek opportunities to enter new customer markets through innovation. Often large companies due to their size find it difficult to keep up with market demand and sometimes only find the solution to their problems by taking a smaller company and delegating innovation to the new acquisition, thus eliminating market competition.

An example of this is Facebook with Whatsapp and Instagram, Disney with Pixel, and Amazon with Whole Foods.

3. Social Entrepreneurship

This model sometimes describes a non-profit organization. The main objective of these companies is to achieve positive changes in society through their initiatives. Although they focus on solving social problems, such as access to food and education, for some of these companies their objective is still to make money. 

An example of a social entrepreneur is Blake Mycoskie, who invested $300,000 of his own money in creating the TOMS Shoes company. Campaigns such as "One-For-One" where they donate a pair of shoes for each one sold, supported water, birth, sight, and anti-bullying initiatives. Through TOMS, Mycoskie has raised awareness on global issues such as poverty and health.

4. Scalable Startup

A scalable startup venture is different from a small business entrepreneur because of its growth plan, a scalable startup develops ideas with the intention of growing. The common pattern seen in startups is to create a viable business with the ability to repeat itself at scale.

Many famous tech companies fall under this model, for example, Facebook, Apple, and Google.

Another example of scalable startups is Uber and Airbnb, the common theme here is to start small, succeed, and then expand.

Before entering the entrepreneurial path, you must identify what type of entrepreneur you want to be, thinking about whether you are only interested in making money, being your own boss, or creating a positive impact on society will help you understand what type of entrepreneurship goes with your personality and goals.

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Can You Make It Out There On Your Own As An Entrepreneur?

“How do I become an entrepreneur?, Do I have what it takes?”, you may find yourself asking yourself these questions at some point in your career. 

The answer to these questions may be answered whether you do or don’t have specific key motivators or key aptitudes. 

Key Motivators 

1.Need to set objectives and goals

The need for a challenge is important for entrepreneurs. They often have a need for achievement and want feedback on their achievements. 

2. Need to make an impact 

Entrepreneurs want to influence people, making money is a motivator but ultimately they want to make an impact through their business.

3. Independence 

The last motivator is autonomy. Entrepreneurs want to be their own boss and be in control. Independence is a strong motivator for those who want to pursue their dreams and have their own business. 

Key Aptitudes 

1.Determination

Entrepreneurs have the perseverance to get through obstacles and reach their goals despite setbacks. Perseverance is the top aptitude with today’s business environment, overcoming problems and frustrations to persevere. 

2. Self-Confidence

Business owners trust their instincts and show their self-assurance. This helps them push to achieve their goals and get them through hard times. 

3. Creativity 

Entrepreneurs that can creatively see business opportunities and identify gaps in the market can find one of a kind services and products that meet a demand. 

4. Ambiguity 

Entrepreneurs have a tolerance for ambiguity and are able to make decisions even when all the information isn’t provided. This uncertainty may be stressful for most people but entrepreneurs learn to work around it. 

5. Accept Failure 

Many people have a history of failures but entrepreneurs accept them as a learning experience and learn from their mistakes. 

6. Action Driven 

Entrepreneurs are action-oriented, they won’t put tasks off for later, they want to get to work and tackle their tasks. 

Before You Go Get Successful 

If you noticed reading through the motivators and aptitudes, I would first get a clear business plan together. When creating your business plan, it should be a real roadmap that shows where you want to go with your company. It should represent that you have done your homework, you understand your target market, and that you can actually generate customers. Now that you have a plan, you can get going!

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4 Women Who Have Succeeded In The Entrepreneur World

According to research conducted by American Express in 2019, ‘‘the number of women-owned businesses grew by 21% between 2014 and 2019’’. While there is still a long way to go to find equal opportunities and recognition, facts like this show that now more than ever, women are gaining more space in the entrepreneurial landscape.

While the entrepreneurial ecosystem is difficult and there are numerous deterrents for women against its advancement, throughout history, some women have faced the fear of failure, the absence of alternative sources of income, and achieved great things.

Let's take a look at the story of 4 women who have succeeded as entrepreneurs.

Melanie Perkins, Canva

With almost no business experience, few resources, and even as a teenager, Melanie Perkins and her boyfriend Cliff Obrecht launched an online school yearbook design firm for students to "collaborate and design their profile pages and articles." However, this was just the tip of the iceberg, she had a bigger dream, she wanted to create a one-stop-shop design site.

After getting in touch with the right person and years of building connections and networking, in 2012 she was finally able to launch the Canva design platform, which provides simplified tools for creating vector designs, posters, and banners.

In October 2019, the company was valued as a $ 3.2 billion business. Every month, more than 30 million people use Canva, and it is a fact that 500 companies around the world already use the platform.

Naomi Hirabayashi and Marah Lidey, Shine

Two brains are better than one, and these two women who were coworkers and friends and trusted each other and were motivated to start a personal and professional counseling help desk. 

They thought about how supportive their relationship was for them and how it might change the lives of others who may need advice and attention to find solutions to problems or just to feel encouraged in daily basics.

Focusing on making daily well-being more accessible and determined to reinvent the health and well-being of the Millennial generation through messaging technology, Shine was launched in 2016 and in less than 2 years it had attracted more than 2 million users in 189 countries.

JK Rowling, Harry Potter Sequel

For a writer to become an entrepreneur, specific challenges are required, and JK Rowling met them all. The beginning was not easy at all, she was struggling with many problems in her life, and she was "as poor as you can be in England without being homeless".

However, it was during the darkest times that Rowling began to write her first novel, this being the beginning of everything. After 12 rejections from different publishers, the 13th accepted the book, and in 1997, it took just a couple of weeks for Harry Potter and the Philosopher's Stone to become a worldwide sensation.

Seven books later, the Harry Potter sequels had sold around 450 million copies in 78 languages ​​worldwide and spawned eight successful film adaptations.

In less than ten years since the publication of her first book, Rowling had become the most successful literary author of all time.

The world of entrepreneurship is not easy, but neither is life. Over the years, women have shown that they can achieve great things and make a positive global impact.

Would you like to become an enterprising woman? Check out our blog: 5 Success Tips for Young Entrepreneurs where we share some tips to become an entrepreneur.

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