1. Small business entrepreneurship
In today’s world, the majority of businesses are still small businesses.
They are mostly barely profitable, but they make profits only to make a living and support their families. Such businesses lack the scale to attract venture capital and they are funded via friends/family or small business loans.
Examples of small business entrepreneurship include hairdressers, grocery stores, electricians, carpenters, plumbers, consultants, etc.
2. Scalable Startup Entrepreneurship
In this type of entrepreneurship, entrepreneurs start their company believing that their vision can change the world. Their funding comes from venture capitalists and they hire the best employees. Finding a scalable and repeatable business model is their goal. Once they find it,
further funding from venture capitalists is required for growing their business.
Scalable startups only make up a small proportion of all businesses due to the risk capital and outsize returns.
Examples of scalable startup entrepreneurship include Facebook, Instagram, Online shopping for electronics, etc.
3. Large Company Entrepreneurship
Large companies through sustaining innovation, offering new products that are variants around their core products. New products are developed in order to meet with changing customer needs and advanced technology. Often, companies do this by partnering with or buying innovative companies.
Examples of large company entrepreneurship include Google, Microsoft, Samsung, etc.
4. Social Entrepreneurship
Social entrepreneurship is where an entrepreneur creates products and services to solve social needs and problems. Their only goal is to make the world a better place and not to make profits or acquire wealth. They can be non-profit, profit or hybrid. Eg syringes.
Importance of Entrepreneurship
Haven’t we all wondered at least once in our lives why entrepreneurship is so appealing to the majority? Why is it so important?
Entrepreneurs create jobs: Entrepreneurs, in addition to employing themselves, also create a number of job opportunities with their business venture. And as their businesses grow, more job opportunities are created,
thereby reducing unemployment.
Entrepreneurs create change: When an entrepreneur makes a product in the hopes of solving a problem or when they explore a new idea, it brings a change into the world. Their ambitions and ideas thus improve the world.
Entrepreneurs give to the society: It is a common notion that the rich are greedy, but it is mostly wrong. The more money they make, the more in taxes they pay which in turn funds social services. Some entrepreneurs as we know, like Bill Gates, the founder of Microsoft, are the biggest donors to charities and non-profits.
BY SHAMSIYA BARA’U AHMED