Entrepreneurs are known to turn their business ideas into reality. The practicality of entrepreneurship just not limited to making profits for the company. An entrepreneur through his company creates jobs, helps in the growth of the country’s economy, affects the lives of people around him socially, financially and sometimes even on the emotional level.
To understand all of this, we need to get a clear idea of what entrepreneurship means. Entrepreneurship is just not a place or a location or a name. Entrepreneurship is a long process. It is the process of launching, developing, establishing and running a business venture from the scratch. It involves financial and capital risks both for the entrepreneur and the investor.
It does not happen every time that entrepreneurship grows in a positive direction. In fact, the reality is quite the opposite. An estimate of 90% of all startups fails every year. A lot of time, capital, manpower and planning is put into these startups and yet they fail to see the sunlight. Even still, 2 out of every 3 people all over the world think of entrepreneurship as a better choice and 1 in every 13 people is actually doing business. A staggering number of startups are launched every year. Some of them make it big while a huge chunk of them fail due to some reason or the other.
As we mentioned earlier, entrepreneurship is a process. A process that yields something beneficial and profitable for the entrepreneur, its constituents and shareholders. It also depends on the type of entrepreneurship with which the entrepreneur is involved.
Let us take a look at the most common types of entrepreneurship that exist in today’s world.
- Small Business Entrepreneurship: A huge 99.6% of the total world businesses can be classified into small business entrepreneurships. They incur a very low startup cost. Such entrepreneurships operate with the sole purpose of supporting the family and friends of the business owner. They are low scale businesses and hardly attract any venture capital or investment from a big company. Small business entrepreneurships offer limited entrepreneurial opportunities and not have much potential for business growth. These small enterprises are run with the help of funding from bank, family or friends. Most of the businesses which we deal with in our day-to-day lives are small entrepreneurships. Some classic examples of this category can be grocery shops, electricians, consultants, electronics shop, carpenters, barbers, work from home jobs etc.
- Scalable Startup Entrepreneurship: Scalable startups are built with an idea of changing the world and impacting the lives of people on a huge scale. A scale which is exponentially times bigger than that of small business entrepreneurships. Scalable startups receive funding and investment from venture capitalists. Entrepreneurs innovate business ideas with the ultimate goal of finding a scalable and repeatable business model. Almost all the Silicon Valley startups are scalable startups. They attract all the risk capital due to their outsize returns. Such startups are primarily located in the innovation clusters all around the world such as Silicon Valley, New York, Bangalore etc.
- Large Company Entrepreneurship: Large companies are the hub of innovation. These companies are of a finite life cycle when it comes to their products or services. They survive by innovating and creating variants or upgraded models of their products which are built around their core products. Customer’s requirements, needs and tastes keep on changing and thus large companies keep evolving their products to meet the customer’s expectations and trends in the market. Large companies often acquire other innovative companies or partner with other large enterprises to build a disruptive product. Google, Microsoft and Samsung are some excellent examples of large companies in the world.
- Social Entrepreneurship: Social entrepreneurship was termed as one of the best business ideas in 2018. Social entrepreneurs are the people who operate and innovate with the objective of solving social problems rather than just creating profits for themselves. They work to make world a better place by solving some of the common social problems such as poverty, hunger, education health etc. Social entrepreneurships can be profit, non-profit as well as hybrid. One remarkable example of Social entrepreneurship is Safepoint Trust by Marc Koska. The company delivered 4 billion safe injections in underfunded clinics in 40 countries with their breakthrough Auto-Disable syringes.