Understanding the different types of entrepreneurship that exist is a good way to know which option will best suit your goal and, likewise, the one that will give you greater long-term stability. Entrepreneurship is probably the most talked about topic on the marketing and business agenda, since more and more want to undertake it. To achieve this, in addition to having a business idea , an effective plan is required. As well as knowing the market and the types of entrepreneurship. According to Entrepreneur magazine, beyond the composition of a business. An entrepreneur generates projects, sets them in motion, and assumes the responsibility and autonomy that derive from those projects.
In other words, entrepreneurship has the ability to visualize ideas and opportunities and execute them with an action plan. There is no room for improvisations or bad planning. In this regard, Mauricio Hubbard, founder and president of Junto’s Financier, explains that one of the best emotions a person can feel is when they undertake something new and, thanks to working on it, observe a gradual development. Regardless of how entrepreneurship is idealized and all the misconceptions that surround it, it is a fact that it is currently a source of jobs and economic development . For that reason, it is essential to know what are the types of profitable ventures.
Importance of Entrepreneurship
The importance of entrepreneurship is so great that it has become a concept related to success and personal fulfillment ; However, have you ever wondered how to undertake? If you have not done so, don’t worry, because in this article you will learn about the main types of entrepreneurship and we will give you a series of tips to start your entrepreneurship project prosperously.
Types of Entrepreneurship
Here are mentioned below:
1. Scalable Entrepreneurship
The scalable business is one that starts as a small business, but grows quickly because it attracts investors. To better illustrate this type of venture, we have as an example companies that do not need to spend on transportation to deliver their products. This type of entrepreneurship focuses on innovation and, to propose something new, uses different strategies. Likewise, it requires financing and one of the objectives is to expand to other markets. Many of these types of startup projects start in Silicon Valley and are focused on technology. Basically, they are startups looking for rapid expansion and big profits . Some examples of scalable businesses are Facebook, Instagram, and Uber.
Types of scalable ventures
Scalable businesses can be found in the following products:
- Infoproducts: digital product that makes the knowledge of a professional available to the public.
- Courses and trainings: resources and lessons that help a student achieve a goal.
- Master: specialized courses that aim to develop a skill.
- Software development: in this area we can find mobile applications.
- Memberships: used on different web and streaming platforms in exchange for unlimited access to different types of content, such as music, books, magazines, series, and movies.
2. Small Business
The main objective of this type of enterprise is to generate self-employment and jobs for family members . Examples of the types of small businesses are: aesthetics, grocery stores or bakeries. Generally, these types of businesses are run by the same owners. But, despite the fact that these projects are very local, they are still considered a type of entrepreneurship. Small businesses do not usually innovate, but they do manage to satisfy local needs . Likewise, they do not seek to internationalize either.
3. Incubator Entrepreneurship
These are projects that have long periods of research and development with the aim of achieving effective results . It is one of the types of business venture that consists of working with other organizations collecting relevant data and information from the market. This type of venture requires financing to carry out market research.
4. Social or Humanist Entrepreneurship
The main objective of the types of social entrepreneurship is to generate a positive change in the world , through innovation in the areas of education, health, social development and the environment. Successful social entrepreneurs have the innovative potential to create products and services or solutions to solve critical social problems and address needs. Their purpose is to make the world a better place to live rather than to create wealth for themselves. Simply put, it is a type of entrepreneurship that recognizes a social problem and then uses business skills, principles and processes to bring about change in society. Mariana Costa, Peruvian businesswoman, CEO of Laboratorial and professor of the online course on Social Entrepreneurship with a Purpose , explains the importance of social entrepreneurship:
“Being an entrepreneur is an exciting and rewarding experience that is undoubtedly full of challenges. A purposeful social enterprise, while going through those obstacles, is trying to solve a social problem and create a value-added business at the same time.”
5. Imitation Entrepreneurship or Mirror Business
In this type of venture there can be two cases: the first, it deals with the imitation of a product or service that already exists in the market and, the second, with the acquisition of a franchise of an already established business model . An example of a mirror venture is the operation of Starbucks Coffee with franchises in 80 countries. The objective of this type of venture is to achieve the success of a similar product or project, which does not mean that it is a bad practice, but rather that it fosters competitiveness and the supply of products; that is, there are more choices for consumers.
6. Technological Entrepreneurship
This type of entrepreneurship seeks to revolutionize the world with scientific and technological advances , at the same time, they are designed to facilitate certain tasks of daily life. They can even implement artificial intelligence. The types of technological entrepreneurship require high levels of financing and have an international scope. In fact, this is one of the new types of entrepreneurship that requires participants to be tech-savvy, creative, passionate, and constantly willing to take risks. The process is often referred to as techno- entrepreneurship , as it is a set of technological and entrepreneurial skills.
7. Digital Entrepreneurship
This type of entrepreneurship includes trade that is carried out through digital platforms and social networks . The world of the internet has made it possible to transact business through personal computers or even smartphones. Therefore, this type of entrepreneurship is the process of identifying and gathering relevant resources to transform a promising opportunity into a profitable online business. Startups or new businesses have begun to realize the reach and potential of the Internet and have preferred the online arena to physical establishments.
And it is that the Internet or the cybernetic world is a treasure of opportunities for people. Companies, societies and the most important stakeholders. Therefore, you have to make your brand more known, valued and, above all, get more customers. Remember that the basis of these types of entrepreneurship is the online environment. So you have to know what is essential to implement a digital marketing strategy for entrepreneurs correctly.
8. Public Entrepreneurship
Public entrepreneurship refers to the type of entrepreneurship that is developed in the public sector with the aim of satisfying a market need . It is sometimes used when the private sector has no products to offer.
9. Private Entrepreneurship
As you rightly say, this type of entrepreneurship begins in the private sector with the purpose of promoting entrepreneurship . Many times the Government provides various support services through private and public companies. That encourages private initiative in carrying out business projects. In fact, a mutual relationship between the public and private sectors would make economic development faster and more balanced.
10. Entrepreneurship of Large Companies
This type of entrepreneurship develops when a company has a finite number of life cycles . In fact, it is focused for an advanced professional who knows how to sustain innovation. They are often part of a large team of C-level executives. The goal of large companies is to create new services and products based on consumer preferences to meet market demand. A big downside to a business when it grows is that it starts to move slowly. As a result, large companies often try to boost entrepreneurship by taking over small startup types and delegating innovation to the new acquisition.
Examples of Types of Entrepreneurship of Large Companies
The largest company can take advantage of limited product or service life cycles and have experienced professionals take the reins on new projects. Massive tech companies like Google and Microsoft often do this by buying a small developer with promising technology as part of their long-term approach. Another clear example of this type of venture is Disney. After being partners for years, Disney bought the animation studio Pixar in 2006. Rather than create its own studio to compete with Pixar. Disney decided it would simply buy the up-and-coming studio behind Toy Story and other hits. films.
11. Cultural Entrepreneurship
This type of entrepreneurship can include aspects related to culture, lifestyle, arts and creative industries. The people who venture into this type of enterprise assume the responsibility of generating a change in society. These cultural entrepreneurs have a unique vision to gather cultural, social, human and financial capital to generate income from a cultural activity. Cultural entrepreneurship has the potential to act as a bridge between creative talents and their ability or lack of ability to market it.
12. Environmental Entrepreneurship
Alternatively known as green entrepreneurship. It is a type of entrepreneurship that implies a certain responsibility towards the environment when defining its objectives and creating processes. In recent times, environmental entrepreneurship has also begun to be referred to as “eco-entrepreneurship”, a term intended to define implementing business concept principles to create a business that solves the challenges of climate change or works sustainably.