Entrepreneurship – Definition, Types, Qualities, Tips, and More
Entrepreneurship is creating a business from an innovative idea that solves one or more problems for a group of people. This brief definition captures the general concept, but, in practice, there are different types of entrepreneurship and entrepreneurs.
Throughout this article, we’re going to explain what each type of entrepreneurship is, so you can identify which one best fits your business idea. Then, at the end of the article, you will find some tips that will help you improve your entrepreneurial skills. Therefore, entrepreneurship is creating a business from an innovative idea that solves one or more problems of a group of people. This brief definition captures the general concept, but, in practice, there are different types of entrepreneurship and entrepreneurs.
Throughout this article, we’re going to explain what each type of entrepreneurship is, so you can identify which one best fits your business idea. At the end of the article, you will find some tips that will help you improve your business skills.
Types of Entrepreneurship
Entrepreneurship – To prepare for this categorization, aspects such as the purpose of the business, the initial investment, the type of solution developed, and its impact on society are taken into account.
Therefore, based on these variables, we define six types of entrepreneurship:
1. Small Business Entrepreneurship
These are sole proprietorships, with a few exceptions where there may be one or two other partners. They are also known as microenterprises, characterize by the low initial investment. Likewise, local businesses consider being those seeking to distribute their products or services within their city limits.
An example of this type of entrepreneurship in Argentina is the micro and small enterprises of the acronym Mayme.
2. Scalable Entrepreneurship
Scalable companies seek to have exponential growth in the short to medium term. It is because they were born to increase and become multinational companies.
Therefore, they are usually companies associated with the technological world. Some examples of them are mobile applications such as Netflix, Facebook, and Instagram designed to satisfy millions of people.
3. Social Entrepreneurship
The main objective of this type of entrepreneurship is to generate a positive impact in their community and the world. Therefore, the promoters of social enterprises generally develop their initiatives in sectors related to education, health, and the environment.
4. Mirror or Imitation Entrepreneurship
Therefore, they are those that reproduce an idea that has had or is having success in the market. You can imitate a product, service, or business model. Thus franchises are an example of mirror companies. To acquire this type of business, it is necessary to have a significant investment due to the high cost of paying for a recognized brand.
5. Opportunistic Entrepreneurship
As its name suggests, this type appears at the right time to solve a specific and urgent need. For example, during the pandemic, companies emerged that began to manufacture masks in large quantities. What characterizes these businesses is the entrepreneur’s vision, creativity, and ability to execute quickly.
6. Entrepreneurship Incubator
Unlike the opportunist, the business incubator focuses on researching the constant needs of the market to find an innovative solution.
Therefore, this type of business needs significant investment to carry out the research that allows them to draw accurate conclusions about the needs of the niche they are analyzing.
The Qualities Needed to be a Good Entrepreneur
Whatever your business idea. Thus, there are fundamental qualities in the people who decide to undertake it. At OLA, Therefore, we recommend that you have these ten qualities to make your business a success:
1. Creativity and Ingenuity
The first step to take is to have an idea because this is where new projects arise that can revolutionize the market or the sector.
They say that achievements come on their own once you love what you do. And to start, you have to be motivated. The only way to face and contract with the difficulties that come your way is to love what you do.
Visualize your business and make it happen. It is not sufficient to have ideas or thoughts, and you have to find the means to realize them. Recall that no one will do it for you if you don’t do it.
You already have the mission. Now take the reins. First, you must study to notice opportunities and take advantage of them at the right time. Each leader influences their team to make decisions but also guides them.
A good deal does not happen overnight, and you will often have to do trial and error. Facing adversity and trying, again and again, will be vital to reaching the highest.
6 Belief Yourself
No one will believe your business if you don’t. Others should see you as confident. If you hesitate at any time, it will reflect in the environment and could affect your project.
Any business, no matter how minor, should be taken highly. Get involved in all happenings and assume responsibilities with your squad and your customers, partners, or suppliers.
Every day you learn something, and on your path to success, you must be open to learning as much as possible and to receiving constructive criticism to improve yourself.
Putting yourself in the shoes of others to understand their wants will help you bond with others. If you are empathetic, you will be able to join with your customers.
Any entrepreneurial project, sooner or later, reaches one of the essential tasks: decision-making. Therefore, If you analyze the advantages and difficulties of a situation, being as objective as possible, your decisions will be the right ones.
Therefore, Don’t worry if you don’t have any of these skills yet, and you can develop them little by little, alone or with a course or workshop.
Wondering Where to Start? Keep these Tips in Mind:
- Dominate your market
- Prepare a business plan
- Identify your target
- Analyze the competition
- Listen to your future customers
- Invested in training
- Create alliances
- Form a productive group
Therefore, entrepreneurship is an innovative process involving many activities to provide solutions to people’s conflicts (target audience). Thus, every business focuses on a specific aspect of life. That’s why there are types of companies.