Types of Entrepreneurship
Created on 09 Dec 2022
Wraps up in 10 Min
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All of us have that one friend who we envy because they’re filthy rich, and we hope in our hearts that our 9-5 jobs could get us there. Yes, you can invest, but what if I tell you there’s one more way? Enter- ENTREPRENEURSHIP!
Sure, it sounds risky to dip one’s toes into something new; but let’s be honest being poor is riskier. And with the spurting startup bubble, entrepreneurship is the ghar ki murgi for India.
Coming to the definition, because who cares about the blah blah- Entrepreneurship is the ability to provide solutions to a general problem and do business out of it. And an Entrepreneur, well, that’s the person in charge of the company, a parent to a brand.
All in all, the person who establishes a business is an entrepreneur. It includes small business owners, content creators, startup founders, and people of all sizes.
Although the definition of entrepreneurship hasn't changed much over the years, the opportunities available to would-be entrepreneurs have advanced considerably.
Consider: What alternatives did an entrepreneur have 100 years ago? You were out of luck if you lacked the knowledge to create something or the money to purchase goods in bulk for resale. Perhaps back then, Indian fathers used to frown upon the idea & tell would-be entrepreneurs, “tumse na ho payega!”
Fast forward to 2022, and there are over 582 million entrepreneurs worldwide. There's a clear explanation for this rise in entrepreneurship, too: the number of opportunities has magnified.
The more modern meaning of entrepreneurship also emphasises making a difference in the world by creating new solutions to challenging problems, such as enacting social change or creating goods that raise our standard of living.
People can take charge of their careers and turn them in the direction they want by becoming entrepreneurs. Entrepreneurs have the power to start the process of improving the world for everyone—including themselves.
Why Is Entrepreneurship Important?
Understanding what an entrepreneur does is crucial to understand the importance of entrepreneurship. The word itself is derived from the French verb "entreprendre," which means "to undertake." An entrepreneur takes on or prepares for all the risks and duties associated with starting a new business to make money.
Here are a few reasons why entrepreneurship is crucial.
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1. Economic growth
Entrepreneurs are crucial to market economies because they can drive the nation's economic growth.
They encourage new employment by developing innovative products and services that accelerate economic growth. Therefore, a fiscal policy that promotes entrepreneurship becomes crucial for economic progress.
Entrepreneurship generates lots of new opportunities and jobs. Entrepreneurship generates a considerable number of entry-level jobs essential for converting unskilled individuals into competent ones. The rise in a country's overall employment rate is attributable to the expansion of entrepreneurship.
As a result, entrepreneurship significantly contributes to new employment opportunities. Entrepreneurial endeavours increase productivity by introducing innovation to every facet of the business, utilising the available resources in the most efficient methods. Entrepreneurs expand markets by offering novel and improved products, facilities, and technologies.
As a result, they contribute to increasing national income and creating new wealth & the government can offer the people more benefits at the national level.
Entrepreneurs provide innovation that opens the door to new businesses, markets, products, and technologies through the proper research and development procedures. Entrepreneurs can play a part in finding solutions to issues that aren't addressed by current products & technology. Therefore, entrepreneurship can improve people's lives by creating new goods and services or adding innovation to already-existing goods and services.
3. Social changes
Entrepreneurs lessen reliance on outdated practices, processes, and technology and alter or break social norms and cultures. In essence, entrepreneurs are the forerunners in introducing new technology and methods, ultimately resulting in societal transformations.
These changes are linked to a better way of living, charitable thinking, stronger morale, and better economic decision-making. Thus, social changes progressively have an impact on regional and global modifications. So it is crucial to recognise the importance of social entrepreneurship.
4. Research and industrial development
Entrepreneurs encourage research and development in addition to innovative business concepts and using their creative thinking. They nurture their methods by giving them new life & transform them into prosperous commercial ventures.
Entrepreneurs are a unique breed of individuals because they are constantly seeking fresh concepts and refining old ones. However, their influence goes beyond their businesses and endeavours: when an entrepreneur creates a new good, service, or method where others copy it (and sometimes even further refine the ideas).
The united efforts of entrepreneurs speed up innovation and industry. They can inspire and encourage one another while planning how to launch new firms. The current industrial climate's transformation simultaneously makes room for others. Thus, it is clear that entrepreneurship serves a variety of economic objectives.
5. Community development
Entrepreneurs can foster cooperation and goodwill among people with similar objectives and passions. Entrepreneurs can contribute to the funding of charity. The social and economic well-being of communities is frequently a result of their products and services.
It typically results in improving infrastructure, massive sanitation, a skilled workforce, and fewer slums. Entrepreneurship often promotes social stability and enhances living conditions.
6. Increased productivity
By providing lower prices and a massive selection of products, entrepreneurs can increase the competitiveness of existing enterprises. Existing businesses might reconsider their plans, raise the calibre of their output, cut costs, and improve efficiency.
This competition frequently spurs companies and people to look for innovative ways to improve their offerings, giving customers more for their money. Therefore, entrepreneurship could aid market leaders in increasing productivity and performance.
7. Social welfare
By bringing people together and providing support, entrepreneurship promotes social unity & reforms. It enables the underprivileged and marginalised segments of society to meet their fundamental necessities by helping to provide them with income. Entrepreneurship frequently fosters a sense of togetherness by being welcoming of everyone, despite differences.
Types of Entrepreneurship
Different individuals have different aims for the business they wish to start. Some people attribute their success to sheer effort, while others believe that having enough money is the key to success. Some business people prioritise social welfare over other considerations. One might as well start a space program. (Am I right, Jeff and Elon?)
So, what are the different types of entrepreneurship? Let’s give it a look.
1. Small business entrepreneurship
The vast majority of entrepreneurial endeavours in India are small firms. Small business owners generate income to maintain a basic standard of living and support their families. They struggle to acquire venture funding for smooth operations because they are small and lack a unique element.
These folks typically use their money to fund their endeavours or borrow money from friends and relatives. The workers are frequently colleagues or family members. Local milk stands, grocery stores, hair salons, plumbers, carpenters, and boutiques are instances of small business owners.
2. Large business entrepreneurship
Businesses with a limited lifespan may exhibit large-company entrepreneurship. These businesses thrive owing to innovation, making them the perfect choice for highly skilled individuals who understand how to maintain innovation.
These businesses offer various items based on their key operation. When a small business experiences rapid growth, it can quickly scale up to become a major corporation. It is also feasible if a larger corporation buys them.
If you take the example of Reliance industries, you might get a bigger picture of large business entrepreneurship. Started in 1966, today, Reliance is one of the biggest and most successful Indian companies. Jio really be rolling in some dhan dhana dhan.
3. Scalable startup entrepreneurship
This kind of entrepreneurship begins with a novel notion that has the potential to effect change. Scalable startup entrepreneurship identifies a need in the market and develops a solution before launching the business.
Venture capitalists typically grant investment for such businesses based on the originality of the company idea. A few examples of ground-breaking startups that have altered the world are Apple, Google, and Amazon. Bhagwan ka dia hua sab kuch hai daulat hai shahrut hai izzat hai, literally!
4. Social entrepreneurship
A socially conscious firm focuses on tackling societal challenges like access to food, money, and education. The stated goal of these businesses is to make the world a better place. They produce goods & services intending to reach these ambitious goals. Non-profit institutions such as NGOs are defined as social entrepreneurship.
For instance, SHEF (Study Hall Education Foundation) is a social enterprise that offers financial aid and mentoring to students from disadvantaged families who want to major in business or engineering. We even have Tihar Jail’s brand, TJ, helping inmates develop skills to become productive members of society.
5. Innovation entrepreneurship
New ideas and inventions are the foundation for innovation and entrepreneurship, which are transformed into businesses. These businesses endeavour to improve people's quality of life and find innovative ways to make their goods and services stand out from the competition.
If you want an example of innovation entrepreneurship, nothing beats TATA Group. Founded in 1868, Tata has always driven innovation in every area, making people's lives easier and elevating their living standards.
6. Environmental entrepreneurship
It also goes by the name of green entrepreneurship. The main objectives of such businesses are profit generation and environmental preservation. They adopt company principles and activities that are incredibly environmentally conscious.
Additionally, they strive to replace the current goods and services with ones that are safe for the environment. In brief, environmental entrepreneurship emphasises social and ecological effects on financial success.
Key traits of environmental entrepreneurs: They jam to the song, Yeh haseen wadiya yeh khula aasmaan.
EcoRight is a company that makes bags of every kind in the most entertaining and hip designs, paying particular attention to being the reasonably priced, environmentally responsible, and appealing method.
Cyberpreneurs and cyber entrepreneurs use the advantage of information technology to conduct business. They provide fresh concepts for delivering customers' products and services online.
These people are aware of the digital world and avoid the inconvenience of visiting a physical store. Such entrepreneurship is referred to be a virtual business that only exists online. One such example is BYJU'S study app, worth $5.7 billion today which is known for helping millions of students. BYJU’S is also the sponsor of the FIFA world cup.
Advantages of Entrepreneurship
Although running a business is not always straightforward, there are many perks. Here are a few advantages that frequently accompany starting your own business:
1. A flexible schedule
People who put in a decent amount of time at work are frequently more productive than those who spend nine or more hours a day there. Entrepreneurship allows you to break out of a routine and create a customised schedule. Jab jago tabhi savera ft. success.
If you're a morning person, entrepreneurship gives you the freedom to start working at the crack of dawn or stay up late if you like the evenings. You can plan your time & do other things in your own sweet time.
You are free to decide whether to stay open later on Tuesdays and Thursdays to accommodate your child's sporting events or to close entirely on Sundays to allow for rest, leisure, or family time. More control over your schedule is liberating and might benefit your emotional and physical health.
You can risk being an entrepreneur and starting your firm if you don't want to be constrained by the working hours defined by an established organisation. You are free to come to work and leave work whenever you like.
People with greater job autonomy are more invested in and engaged in their work. Entrepreneurs are highly motivated to put in much effort to make sure that their firms are successful because they are in charge of running them. You experience a sense of independence and self-direction because you have your own company to run.
3. You learn a lot
It is rewarding to have the chance to match your career with your convictions. For instance, if you support environmental protection, you could launch a firm in that field or use eco-friendly practices to set your company apart from the competition.
Your dreams can come true through entrepreneurship. You get to live and pursue a career consistent with your ideals and principles, whether they involve taking care of people, protecting the environment, or prioritising your family.
4. Meeting like-minded people
Working with industry experts is ideal when beginning a business. Some business owners join organisations of driven and helpful people that concentrate on establishing and enhancing enterprises. These relationships will undoubtedly help you develop into a successful businessperson. There are several chances to interact with different business experts and connect with mentors. Success in entrepreneurship = aap bangalore aa rahe hai!
5. A sense of fulfilment
An entrepreneur makes things happen. To make the business effective, you create a vision and set out the plan with the necessary actions. You have tremendous pride and joy when you carry out these actions. The business will take on more importance, and you will feel fulfilled as you nurture it and watch it expand. You can finally mean it when you say, “kaam paiso ke liye nahi kar raha hu.”
The Bottom Line
There is no one ideal approach to becoming an entrepreneur. They come in all shapes, sizes, and gender. B-T-dubs, you can also check out this article on female entrepreneurs.
In a field that is so diverse, there are a few characteristics that all entrepreneurs have. It includes passion and a drive with which they establish businesses that tackle some of the toughest challenges in the world.
You may be destined to become an entrepreneur if you want to change the world, contribute to society, or even escape the monotonous and inflexible 9 to 5 work. (Ironic, isn’t it?)
Remember “life mein sabse bada risk hota hai kabhi na risk lena” . So, rely on your instincts and act on your intuitions, and always have an open mind to new opportunities and information that may present themselves, and you may as well be the next entrepreneur in the making! May you soon be able to relate while jamming to the song, “My money don’t jiggle jiggle. It folds.”
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