Entrepreneurs are people who are driven to make a difference in the world. To be good leaders and innovators, they must possess a set of skills. Because there are so many different types of enterprises, there are also many types of entrepreneurship. We’ll go through them in this article.
What Are the Various Types of Entrepreneurship?
People have different goals and ambitions for the types of businesses they want to start. Everyone runs their company based on their unique personality, abilities, and qualities. Some people believe that hard labor will lead to success, while others may rely on capital to get there. Profits are less essential to some entrepreneurs than doing good for others.
Although every sort of entrepreneur faces comparable issues, they may choose to approach them in different ways. Each entrepreneur views obstacles differently and has different resources to overcome them.
The following are the various types of entrepreneurship:
#1. Small business entrepreneurship
The vast majority of enterprises are small. People who are engaged in small business entrepreneurship are more likely to create a profit that will allow them to support their family and live a modest lifestyle. They are not looking for enormous earnings or venture capital funding. When a person owns and operates their own firm, this is referred to as small business entrepreneurship. Locals and family members are often hired. This area of entrepreneurship includes local grocery stores, hairdressers, small boutiques, consultants, and plumbers.
#2. Large business entrepreneurship
When a company has a limited number of life cycles, this is referred to as large company entrepreneurship. This is the type of entrepreneurship for an experienced expert who understands how to sustain innovation. They are frequently part of a huge group of C-level executives. To meet market demand, large corporations frequently develop new services and products based on client preferences. When a small business grows quickly, it might transform into a giant corporation. This can also occur when a huge corporation purchases them. Microsoft, Google, and Disney are examples of this type of entrepreneurship.
#3. Scalable startup entrepreneurship
This type of entrepreneurship occurs when entrepreneurs believe that their company has the potential to alter the world. They frequently receive venture capitalists money and hire specialist workers. Scalable startups hunt discover gaps in the market and develop solutions for them. Many of these companies are technology-focused and start in Silicon Valley. They seek rapid growth and high-profit margins. Scalable startups include Facebook, Instagram, and Uber.
This type of entrepreneur is one that aspires to solve societal problems with their products and services. Their primary purpose is to improve the planet. They do not work for large earnings or fortune. Instead, these kinds of entrepreneurs tend to establish organizations or businesses dedicated to social benefit.
#5. Innovative entrepreneurship
Entrepreneurs who are innovative are always coming up with new ideas and inventions. They take these concepts and turn them into profitable businesses. They frequently strive to improve people’s lives. Innovators are typically highly motivated and enthusiastic individuals. They seek strategies to differentiate their products and services from the competition. Innovative entrepreneurs include people like Steve Jobs and Bill Gates.
#6. Hustler entrepreneurship
Entrepreneurs who are willing to work hard and put in consistent effort are referred to as hustlers. They frequently begin small and work their way up to larger enterprises via hard effort rather than capital. Their ambitions drive them, and they are willing to go to any length to achieve their objectives. They do not give up easily and are willing to face difficulties in order to obtain what they desire. A hustler, for example, is willing to cold call a large number of people in order to make one sale.
#7. Imitator entrepreneurship
Imitators are business owners who take inspiration from the ideas of others yet try to improve them. They seek to improve and monetize specific products and services. An imitator is a hybrid of an innovator and a hustler. They are eager to come up with fresh ideas and work hard, yet they begin by imitating others. People who imitate have a strong sense of self-confidence and resolve. When starting their own firm, one can learn from the mistakes of others.
#8. Researcher entrepreneurship
When it comes to creating their own business, researchers take their time. Before selling a product or service, they want to conduct as much research as possible. They feel that with the proper preparation and information, they will have a better chance of success. A researcher ensures that they grasp every area of their business and that they know exactly what they are doing. They prefer to rely on facts, evidence, and logic above intuition. They value detailed business strategies since they reduce their risks of failing.
#9. Buyer entrepreneurship
A buyer is a type of entrepreneur that invests their fortune in business. Their skill is using their fortunes to invest in firms that they believe will succeed. They find promising companies and seek to acquire them. They then implement whatever management or structural changes they deem necessary. Their goal is to expand their revenues by growing the firms they acquire. Because they are purchasing already well-established businesses, this type of entrepreneurship is less hazardous.
Types Of Entrepreneurs In Nigeria
#1. The innovator
Innovators pioneer innovative methods of doing things. Then figure out how to make this new manner profitable.
The innovator outperforms the competition by devising a superior method. Most firms replicate what others have done. The Innovator accomplishes the polar opposite by breaking new ground.
There are two types of innovators. The specialist innovator and the execution-driven innovator.
The Specialist Innovator
Specialist innovators devote their entire lives to one industry.
The extended apprentice system is one of this type’s distinguishing features.
Novices in an apprentice system work for many years under the supervision of a master. During these years, masters assist novices in focusing their talents and natural abilities to attain simple tasks. Novices improve gradually while masters help them refine their talents to perfection.
When they are ready, masters allow them to become new masters, or specialists.
They are specialists because they have mastered a subject so thoroughly that no newcomer can compete with them.
Execution-driven Innovator
Execution-driven innovators are extremely pragmatic. Their procedure is straightforward.
First, they hunt for profitable problems in society. Then sort through a slew of potential remedies to these issues.
At this point, their purpose is to select from what is available. During this step of selection, they reject the majority of the current solutions, thereby choosing the most viable option.
They excel at the final lap more than anyone else. They persuade a large number of individuals to use and rely on this solution indefinitely.
#2. The Regular Entrepreneur
Regular entrepreneurs operate homogenous enterprises. For them, business is a way to generate quick money. It is not their responsibility to solve certain societal problems.
The innovators and inventors can continue with their business.
There are two kinds of regular entrepreneurs. One type of entrepreneur is the imitator. The second type of entrepreneur is the bureaucratic entrepreneur.
The Imitator
Imitators experience less mental strain. They meticulously replicate what works for others, bringing zero original ideas to the business of creating money. Unfortunately, the majority of new entrepreneurs are imitators.
The Bureaucrat
Bureaucrats believe that “what worked in the past will work in the future.” A bureaucrat’s primary concern is the industry’s stability. Opportunities with too much risk are ruled out. What bureaucrats care about is a consistent return on investment. There is nothing else.
This is the typical path for some young entrepreneurs with minimal money. The goal here is to gradually increase money. They’re not concerned with problem resolution..
#3. The Inventor Entrepreneur
It is uncommon for inventors to go on to become successful business owners.
Jeff Bezos, the world’s richest entrepreneur, is a prime example of an innovator. According to a Harvard report, Bezos holds 46 patents. And some of his personal characteristics are uncommon in a new entrepreneur.
The Value of Entrepreneurship
#1. Entrepreneurship Development
Entrepreneurship is the establishment of new companies, particularly small ventures, to realize the entrepreneurs’ original ideas.
Thus, the development or expansion of small businesses is a specific contribution of entrepreneurship in every economy around the world.
According to statistics, about half a million small businesses are founded in the United States economy each year. In this way, our country is hardly an outlier.
#2. Creation of new job opportunities
Entrepreneurship enterprises created a significant number of new jobs. It provides entry-level jobs for unskilled workers who need training or experience.
Small businesses are the only sector that provides a significant fraction of overall employment each year.
Furthermore, entrepreneurial companies train and supply skilled workforce to huge industries.
#3. Innovation
Entrepreneurship serves as an incubator for innovation. In the current condition of order, innovation causes disequilibrium.
It extends beyond innovation discovery to implement and commercialize it.
Entrepreneurship contributes to “leapfrog” invention, research, and development.
Thus, entrepreneurship fosters innovation by providing new enterprises, products, technology, markets, quality of goods, and so on to the economy, thereby increasing Gross Domestic Product and people’s standard of living.
#4. Influence on community development
A community benefits from a diverse employment base comprised of many small entrepreneurial enterprises.
It encourages a higher degree of homeownership, fewer slums, better sanitary standards, and increased spending on education, recreation, and religious activities.
As a result, entrepreneurship promotes greater stability and a higher quality of community life.
#5. The ramifications of corporate failure
The collapse of the huge industry has almost irreversible consequences for the development of the state, the state of the economy, and the financial situation of the key individuals.
The incumbents lost their positions, and suppliers and financial institutions are facing a recovery problem.
Customers are denied goods and services, and the government loses taxes. This could not happen in the event of a business failure.
There will be no discernible impact on the economy and no political ramifications.
#6. Outsiders’ political and economic integration
Entrepreneurship is the most successful method of reintegrating folks who feel disenfranchised and alienated into the economy.
Minorities, migrants, and women are safely integrated into entrepreneurship, which will contribute to the development of a well-balanced plural society.
#7. Entrepreneurship is born.
Entrepreneurship is a training ground for novice adventurers.
It is the field in which a person can begin his or her business idea, which may grow into a large enterprise. All large industrial ventures began as a small entrepreneurial initiative.
As a result, entrepreneurship offers a diverse range of initiatives and entrepreneurs in every economy. As a result, the large open arena of entrepreneurship serves as an incubator for entrepreneurs.
#8. Improves one’s level of living
The standard of living is a notion based on a rise in the number of goods and services consumed by a household during a specific time period.
As a result, it is dependent on the market’s supply of diverse products. Entrepreneurship creates a wide range of products of various types through their ingenuity.
Furthermore, it raises the income of those who work in entrepreneurial firms.
This enables employed people to consume more products and services. In effect, entrepreneurship raises a country’s people’s level of living.
#9. Encourages research and development.
Entrepreneurship is about innovation, thus new ideas for goods and services must be tested through experimentation.
As a result, entrepreneurship generates cash for research and development in collaboration with universities and research organizations. This fosters overall economic development, research, and development.
What are The Two Main Types Of Entrepreneurs?
Business owners and angel investors are the two basic sorts of entrepreneurs. Business owners desire to be involved in the formation of their firms as well as manage them.
In Conclusion
Having known the various types of entrepreneurship available, it’s up to you to choose what works best for you. Your education, expertise, network, and capital basis are all factors that will influence your decision.
- SMALL BUSINESS ENTREPRENEURSHIP: Meaning, Examples, Ideas, Degrees
- Who is an Entrepreneur in Nigeria? Best Easy Guides to Get Started
- BUSINESS ENTREPRENEURSHIP: Ideas & What You Should Know 2023
- What Is Entrepreneurship Development? Need For Entrepreneurship Development In Nigeria
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