What is entrepreneurship? – Entrepreneurship is one of the biggest career paths that is getting recognition globally. In 2020, there were over 582 million entrepreneurs in the world, and the figure is significantly increasing daily.
Whether as a small business or large business enterprise, entrepreneurship is among the sectors that balance the world’s economy. In this comprehensive article, we will discuss what entrepreneurship is, how entrepreneurship work, the types of entrepreneurship, entrepreneurship skills, and the importance of entrepreneurship to the global economy.
What is Entrepreneurship?
By definition, entrepreneurship involves starting a business, whether big or small, to earn profit from it. Over the years, the modern world has had a broader explanation of entrepreneurship. It involves solving multiple problems to change the world.
For example, with the introduction of social media, an entrepreneur can create products and services that lead to social change, which can affect humans in any. It also involves the bringing of innovative ideas to solve social problems.
Aside from this, it can also serve as a means for people to build their businesses and create their own career paths. Although it can be risky, when successful, it can bring tremendous benefits and rewards. Having said that, let’s look at how entrepreneurship works.
How Does Entrepreneurship Work?
Entrepreneurship is more than just owning a business. It’s more of a lifestyle. A successful entrepreneur looks for business problems and tries to find ways to address and solve the issue. Entrepreneurship involves developing business plans and goals to make a profit.
For you to become a successful entrepreneur, you have to make friends with failure; sometimes, you might be lucky to start a business and immediately begin earning a profit; certain times, you have to try numerous times before it yields a positive result, so in this situation, you have to accept failure as a way of moving forward by learning from it and improving yourself.
Types of Entrepreneurship
Generally, entrepreneurship is all about developing, implementing, and launching a business. However, it has different types. People have different perspectives on entrepreneurship and the type of business they desire to build.
Operating a business depends on one’s skills and personality. Some people earn only through hard work, while others have to use capital. Some entrepreneurs even prepare to offer social goods to make a profit. Let’s look at the different types of entrepreneurship.
1. Small business entrepreneurship
Most of the businesses you will see today are small businesses. Small business owners are unlike large-scale business owners; these people aren’t seeking significant profits; rather, they want to earn enough to sustain a decent living.
They usually hire their family members to help them run the business or local employees. The type of businesses they typically run includes grocery shops, hairdressers, plumbers, etc.
2. Large company entrepreneurship
Another form of entrepreneurship in this article is Large company entrepreneurship. Successful entrepreneurs are advanced professionals versatile with innovation sustenance. Large company entrepreneurship involves the production of goods and services based on their buyer’s likes and demands. Small business entrepreneurs can also upgrade to this stage, especially when they experience tremendous growth or large companies acquire them. The perfect example of this is Microsoft, Disney, and Google.
3. Scalable startup entrepreneurship
Most scalable startup entrepreneurs believe in technological innovation advancement. They believe that they can change the world, so they always look for market problems and try to solve them and sometimes even look for what is missing in the market so they can create them. Venture capitalist often funds them, and all their employees are specialized. Examples of such businesses include Uber, Facebook, and Instagram.
4. Social entrepreneurship
Social entrepreneurs are entrepreneurs that are not in for profit; instead, they create their products to solve social issues. Their primary aim is to spread humanity. Most of these entrepreneurs open non-profit organizations to achieve their goals.
5. Innovative entrepreneurship
Even from the name, these entrepreneurs always create wonderful new ideas in the business world. Most innovative entrepreneurs are passionate people that seek the betterment of people’s lives. They tend to make sure that their products are unique in the market. Examples of such individuals are Bill Gates and Steve Jobs.
6. Hustler entrepreneurship
Hustlers entrepreneurs put in maximum effort and work hard to achieve their goals. This kind of person typically starts with a small business and then elevates higher using their actions instead of capital alone. They usually motivate themselves with their aspirations. Regardless of the number of failures they experience, they never quit easily.
7. Imitator entrepreneurship
These kinds of entrepreneurs don’t have their ideas; rather, they are inspired by other people’s ideas but usually improve them. They put in a lot of effort and have confidence and determination. They always look at other business mistakes and then try to avoid them when creating their own.
8. Researcher entrepreneurship
Researcher entrepreneurs are those that spend their time, resources, and effort doing the research before coming up with their business. These people are likely to succeed because they usually prepare, analyze and evaluate the market before venturing into it. They don’t use intuition to make things right; instead, they depend on logic, facts, and data. They emphasized a detailed business plan which reduces their chances of failing.
9. Buyer entrepreneurship
Buyer entrepreneurs are wealthy people that acquire already established businesses. They inject their funds into the business and make changes where deemed necessary. Their main aim is growing the business and earning a profit, so this category is also less risky.
Importance of Entrepreneurship
The importance of entrepreneurship doesn’t only affect the business owner but also provides working opportunities to citizens and improves the entire global economy. They elevate people’s living standards by creating a source of income for them. Below are some of its importance in society.
- Entrepreneurship involves risky decisions; entrepreneurs usually transform their ideas into successful businesses. However, when these ideas thrive and work out, entrepreneurs receive rewards and satisfaction, understanding that their skills and ideas are the reason behind their success.
- The second vital beneficiary of the field is society. The society also benefits from the field because most of these businesses create jobs for both well-to-do and less-privileged individuals. Successful business enterprise look at not only the company but also the society. In this case, when they earn revenues and profit from their business, they normally fund different charity programs across their locality.
- It plays an essential role in every country’s economy. For example, some entrepreneurs tailor their expertise to improving technology; as such, they have created many gadgets that today have made numerous works easily. They also introduce seamless methods to do business for both small and large companies.
- Entrepreneurship also increases productivity among business owners. It provides a society with the best and most productive teams, elevates competition, and removes the less effective teams.
- It also increases research and development. Because their products need to be tested before launching in the market, this way, they also finance the research institutions across various countries. This also increases economic construction and development.
- It also increases income, thus improving the living standard of many people.
The importance of an entrepreneur in the world can never be overemphasized. Above are some of the main importance of capitalism.
Skills Every Entrepreneur Should Have
Below are some of the skills that every entrepreneur should have:
One significant skill that unites all entrepreneurs is leadership. Leadership skill is required in all aspects of the field, starting from creating the business plan to earning profit.
Meanwhile, for every interaction with employees or investors, entrepreneurs ensure that they show their zeal. They are friendly where necessary, always listen to their employees’ opinions and take advantage of every opportunity to learn and grow.
2. Interpersonal communication
Every entrepreneur understands that communication is the key to their success. It’s a good communication skill that will help them close every deal, solve conflicts, increase sales, and many more.
3. Business Strategy
For entrepreneurs to achieve their goals, they need to have a clear business focus and knowledge of the industry and when there is a need for change. Although they are decisive, they are always ready to change when needed.
4. Collaboration and project management
Entrepreneurs know the essence of becoming a good team leader or team member, so they constantly build good relationships with every important person in the industry, be it investors, partners, managers, etc.
To wrap up, entrepreneurship involves creating a business to profit from it. Entrepreneurship is among the greatest driving force of success in an economy. It has numerous benefits, such as creating jobs, promoting innovation, helping communities, and many more. However, before you become a successful entrepreneur, you must possess skills like leadership which is the most critical, interpersonal communication skills, business strategy, collaboration, and business management, etc.
Frequently Asked Questions
Who is called an entrepreneur?
An entrepreneur is someone that establishes a business. He/she bears the risks and enjoys the profits associated with the business.
Is entrepreneurship profitable?
Yes, even though risky, entrepreneurship is a quite profitable venture.
Is being an entrepreneur worth it?
Yes, it is worth it. An entrepreneur has a higher chance of creating wealth compared to salaried employees.