Entrepreneurship is the ability to create, organize, and run a business. Its main aim is to make a profit despite the uncertainties involved.
Entrepreneurship connects all the resources, such as capital, land, labor, natural resources, etc., that can generate a profit.
This article covers different types of entrepreneurship, their importance, and characteristics of successful entrepreneurs.
Who is an Entrepreneur?
An entrepreneur is someone who can establish, manage, and accomplish a project. It involves handling risks and making profits. Starting a new business venture is an example of entrepreneurship. Entrepreneurs are innovators who generate new ideas by replacing outdated old ideas. They are responsible for economic growth.
Entrepreneurship can range from a home-based business, medium to multinational companies.
Anyone who has the determination to start a new company and can deal with the risks involved can become an entrepreneur.
Types of Entrepreneurship
Here are four types of entrepreneurship:
Small Business Entrepreneurship
Small business owners who earn profit to support themselves and their families fall under this category. They hire either their family members or local people to work as their employees. They do not seek to make large-scale profits. Hairdresser, local grocery store, travel agent, consultant, carpenter, plumber, electrician, etc., are part of this category.
Large Business Entrepreneurship
It comprises large companies that create products and services based on consumer requirements keeping in mind market trends. They are a group of advanced professionals with an innovative mindset. Google and Microsoft fall under this category.
Scalable Startup Entrepreneurship
The entrepreneurs work with a vision to change the world. They hire skilled employees and receive funding from venture capitalists. Investors invest in their business if the idea is out of the box. Most of them are technology-based and aim for big profits. Facebook and Instagram fall under this category.
The entrepreneur focuses on solving social issues with their products and services. Their main aim is not to make big profits but to make the world a better place to live. Non-profit organizations fall under this category.
What are the Characteristics of Successful Entrepreneurs?
Here are a few characteristics that must be possessed by entrepreneurs if they want to be successful:
Risk-taking ability: The entrepreneur must be courageous to evaluate and take risks involved in starting a new venture.
Innovation: He should be able to think out of the box. He should develop new customer-friendly products or services that earn profits for his company. It must also solve the existing problem more efficiently and economically.
Vision and Leadership quality: He should be clear about his vision for his new project. A lot of resources are required to turn the idea into reality. So, he should be able to guide his team in the right direction to achieve success.
Broad-Minded: He should be able to analyze the existing circumstances and predict future trends. He must spot and capture the opportunity for the company’s benefit.
Flexible: He should be flexible and open to change. He must incorporate changes in product, service, policy, etc., based on the requirement.
Awareness: He should have complete knowledge of the company’s product or service. He should also be aware of market trends. It is essential to know whether the product meets the market demand or need to be modified.
What is the Importance of Entrepreneurship?
Employment creation: Entrepreneurship generates employment. It helps in gaining experience and provides training to the employees.
Innovation: It lays down the path for innovation. It helps to create new products, technology, services, etc. The living standard of people gets increased.
Social development: It generates employment that uplifts society’s living standard. It promotes more expenditure on education, homeownership, sanitization, etc. The organizations work towards the betterment of community life.
Improved standard of living: Entrepreneurship improves the living standard of a person as his income increases. It means the consumption of various goods and services by a household increases.
Research and development: Research is the backbone of any successful business venture. It is essential to research and test new products and services before launching them in the market. Hence, it helps in financial investment for research and development. It promotes development in the economy.
Questions for Entrepreneurs
The path to entrepreneurship is exciting. But analyze yourself before moving on this path.
Here are a few questions you should consider before becoming an entrepreneur:
- Do you have the personality, mindset, and the required resources to devote to your venture?
- Do you have a clearly defined plan to face financial challenges?
- Do you have an exit plan if your venture does not work?
- Have you analyzed the risk involved?
- Are you a part of a skilled network to seek professional advice from?
- Do you have a clear understanding of your product or service? And how it will prove more beneficial than the existing product?
- Do you have complete knowledge of your target customer?
- Do you have enough resources to expand to larger markets?
- Do you need to get your product patented? Or how long will it take to get a license?
- Have you analyzed how you will market and sell your product?
- Does your venture meet the laws?
Being an entrepreneur is not an easy task. It requires complete preparation and availability of resources.
If you have a clear plan, sufficient funds, and complete access to resources, then you can move to the next level.
So, if you have any experience as an entrepreneur, please share it in the comments below.