Types of Entrepreneurship: The 4 types you should know – Therefore, what Are the 4 Types of Entrepreneurship? In fact, anyone interested in starting and running own business should consider which entrepreneurial model he/she prefers. There are small business, scalable startup, large company, and social entrepreneurship. Are you a beginner in business? These are the things you should consider. This is why this post focuses on educating our teeming entrepreneurs on what they should know about the type of entrepreneurship they are. This will enable you know what steps to take to grow your business. You have to read on.
Types of Entrepreneurship:
This post shall be linking up with many other topical references to boost the writ-up. You are expected to click on the highlighted links for further reading. The questions is; you’re Not a Real Entrepreneur, who then is a real entrepreneur? Why should the other entrepreneur think that the other is not an entrepreneur. This is one of the focuses of this post. In fact, there are four distinct types of entrepreneurial organizations will will be bringing to your knowledge. These are;
- small businesses,
- scalable startups,
- large companies
- and social entrepreneurs.
These all engage in entrepreneurship. isn’t it? Yet entrepreneurs in one class think that the others aren’t the “real” entrepreneurs. Why? Therefore, this post looks at the differences and similarities and explains why there’s such confusion.
Small Business Entrepreneurship: Types of Entrepreneurship: The 4 types you should know
Here I want to relay the story of a young entrepreneur. Hear hi story;
My parents came to the United States through Ellis Island in steerage in sight of the Statue of Liberty. As immigrants their biggest dream was opening a small grocery store on the Lower East Side of New York City, which they did in 1939. They didn’t aspire to open a chain of grocery stores, just to feed their family.
My parents were no less of an entrepreneur than I was. They went on an uncharted course, took entrepreneurial risk and only made money if the business succeeded. The only capital available to them was their own savings and what they could borrow from relatives. Both my parents worked as hard as any Silicon Valley entrepreneur but with a different definition of a successful business model. When they made a profit, they could feed our family. When business was bad they figured out why, adapted and worked harder still. They were only accountable to one and other.
Today, the overwhelming number of entrepreneurs and startups in Nigeria are still small businesses. Many started like this family in the last paragraph. So, were they not or are you not an entrepreneur?
Scalable Startup Entrepreneurship: Types of Entrepreneurship: The 4 types you should know
However, unlike my parents, Fred Durham and his partner Maheesh Jain started the now $100+ million CafePress, knowing they wanted to build a large company. Founded in offices smaller than my parents grocery store, Fred and Maheesh’s vision was to provide a home for artists who made personalized products assembled in a just-in-time factory that today delivers a customized gift each second.
Furthermore, once they found a profitable business model they realized that scale required external venture capital to fuel rapid expansion. With venture capital came accountability to board members, forecasts, and other people’s agendas. Success for a scalable startup is a three-times (or more) return on the investor’s money – either by a public offering of stock or by selling the company.
Scalable startups in technology centers (Silicon Valley, Shanghai, New York, Bangalore, Israel, etc.) make up a small percentage of entrepreneurs and startups but because of the outsize returns attract almost all the risk capital (and press.)
This is the difference. In the beginning the dream for a large business was there. Remember, ones a profitable business model was found, venture capital was needed to scale up. Did you learn something here? And, when are you going to scale up your business to the next level of entrepreneurship? We can turn your small enterprise business to a limited liability company. Currently, I have 2 requests of limited liability companies who want to converted to Public Limited Liability (PLC) company. Can you do likewise?
Large Company Entrepreneurship: Types of Entrepreneurship: The 4 types you should know
Furthermore, at the end of 1980, IBM decided to compete in the rapidly growing personal computer market. They were smart enough to realize that IBM’s existing processes and procedures wouldn’t be agile enough to innovate in this new market. The company established their new PC division (called Entry Systems), as a Skunk Works in Boca Raton Florida a 1000 miles from IBM headquarters. This small group consisted of 12 engineers and designers under the direction of Don Estridge. Success for this new division meant generating substantial revenue and profit for company.
The division developed the IBM PC and announced it in less than a year. Three years later the division had sold 1 million PC’s, had 9500 people and a billion dollars in sales.
Don Estridge’s paycheck and funding for the division came from IBM and he reported up the organization, but in his own division he was no less entrepreneurial than Michael Dell or Steve Jobs – or Fred Durham or my parents. That is it. And entrepreneur is an entrepreneur. The next one may look different, but he/she is also an entrepreneur.
Social Entrepreneurship:
Irfan Alam, a 27-year-old from the Indian state of Bihar started the Sammaan Foundation to transform the lives of 10 million rickshaw-pullers in India. Irfan got banks to finance rickshaw-pullers and designed rickshaws that can shelve newspapers, mineral water bottles and other essentials for rickshaw passengers. These rickshaws carry ads and the pullers get 50% of the ad revenue, the remainder going to Sammaan. The rickshaw-pullers end up as owners after re-paying the bank loan in installments. Irfan started off with 100 such rickshaws in 2007 and have 300,000 today.
Irfan doesn’t take a salary but he is as focused on scalability, asset leverage, return on investment and growth metrics as any Silicon Valley entrepreneur ever was. That i’s.
Summing up: Types of Entrepreneurship: The 4 types you should know
You have read the stories. Yet, could you figure the similarities among them? In fact, it’s clear to ascertain what is common among them. These are;
- resilient,
- agile,
- tenacious
- and passionate
As a matter of fact, these are the four most common traits of any class of entrepreneur. Do you have these qualities for your business today?
Furthermore, is that what they also had in common was that for each of their businesses, they were initially searching for a business model. And so, each was instinctively executing a customer discovery and validation process. These are great lessons for Nigerian entrepreneurs. On the other hand, there were obvious differences in each type. The were in personal risk, size of vision and goal.
In conclusion, the lessons learned include that the four different types of entrepreneurship: Small Business, Scalable, Large Company, Social were all searching for a sustainable business model. You also leaned that no matter the type, entrepreneurs have common characteristics which are resilient, agile, tenacious and passionate. And their differences include level of tolerance of personal risk, size and scale of the vision and their personal financial goal.
TO SUPPORT AND GROW YOUR BUSINESS READ ALSO:
- Why You Need SCUMl Certificate
- 14 Categories of businesses that make you a millionaire
- Other business plan templates
- SCUML Application Form
- How to get help for SCUML Certificate
- Get a business Plan
- Register your business @ CAC
- 2022 LUCRATIVE BUSINESSES FOR NIGERIANS
- Register for AGSMEIS loan On-line training
- How we aid you apply for AGSMEIS loan in Nigeria
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