Millions of startups have been launched since 2019 by different entrepreneurs. Although the statistics are not always positive, with nine out of 10 startups failing, this hasn't stopped entrepreneurs from starting a business these days.
There are different reasons why startups fail, from insufficient funds to a wrong perspective. Before making a decision about what type of business you want to start, you must first know what type of entrepreneur you are going to be because it will help you set your goals.
In this blog, we discuss the four types of entrepreneurship and give some examples for each.
1.Small Business Entrepreneurship
Most startups are in the small business entrepreneurship arena. A small business can be any restaurant, retail store, or company launched by a founder, without the intention of converting the business into a franchise or chain.
This category of business comprises small businesses such as small grocery stores, service providers, or restaurants. Additionally, influencers who work on social media such as Instagram or YouTube and product testers are also considered small businesses.
2. Large Business Entrepreneurship
This entrepreneurship model is distinguished by creating a new business entity within an existing company, such as a new product line or division, rather than building a new business from scratch.
Entrepreneurs in large companies seek opportunities to enter new customer markets through innovation. Often large companies due to their size find it difficult to keep up with market demand and sometimes only find the solution to their problems by taking a smaller company and delegating innovation to the new acquisition, thus eliminating market competition.
An example of this is Facebook with Whatsapp and Instagram, Disney with Pixel, and Amazon with Whole Foods.
3. Social Entrepreneurship
This model sometimes describes a non-profit organization. The main objective of these companies is to achieve positive changes in society through their initiatives. Although they focus on solving social problems, such as access to food and education, for some of these companies their objective is still to make money.
An example of a social entrepreneur is Blake Mycoskie, who invested $300,000 of his own money in creating the TOMS Shoes company. Campaigns such as "One-For-One" where they donate a pair of shoes for each one sold, supported water, birth, sight, and anti-bullying initiatives. Through TOMS, Mycoskie has raised awareness on global issues such as poverty and health.
4. Scalable Startup
A scalable startup venture is different from a small business entrepreneur because of its growth plan, a scalable startup develops ideas with the intention of growing. The common pattern seen in startups is to create a viable business with the ability to repeat itself at scale.
Many famous tech companies fall under this model, for example, Facebook, Apple, and Google.
Another example of scalable startups is Uber and Airbnb, the common theme here is to start small, succeed, and then expand.
Before entering the entrepreneurial path, you must identify what type of entrepreneur you want to be, thinking about whether you are only interested in making money, being your own boss, or creating a positive impact on society will help you understand what type of entrepreneurship goes with your personality and goals.
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