Top Types of Entrepreneurship You Need to Know

Understanding the different types of entrepreneurship 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 discussed topic on the marketing and business agenda since more and more people want to pursue it.

According to Entrepreneur magazine, beyond the composition of a business. An entrepreneur generates projects, sets them in motion, and assumes the responsibility and autonomy derived from them.

Regardless of how entrepreneurship is idealized and all the misconceptions surrounding it, it is a fact that it is currently a source of jobs and economic development. In this guide, learn about different types of entrepreneurship.

12 Popular Types of Entrepreneurship

Here are the types of entrepreneurship that you can pick to showcase your critical thinking, turn bold ideas into reality, and lead the business world.

1 – Scalable Entrepreneurship

The scalable business starts small 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 proposes something new using different strategies. 

Likewise, it requires financing, and one of the objectives is to expand to other markets. Many of these 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.

2 – Small Business Entrepreneurship

The main objective of small business entrepreneurship 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, even though these projects are very local, they are still considered a type of entrepreneurship. Small businesses do not usually innovate but manage to satisfy local needs. Likewise, they do not seek to internationalize either.

3 – Incubator Entrepreneurship

These projects have long periods of research and development to achieve effective results. It is one of the types of business ventures that consists of working with other organizations and 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. While going through those obstacles, a purposeful social enterprise 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 entrepreneurship, there can be two cases: the first 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, which has franchises in 80 countries.  This type of venture aims 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

Technological Entrepreneurship seeks to revolutionize the world with scientific and technological advances, and at the same time, they are designed to facilitate certain tasks in 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 called techno-entrepreneurship, as it is a set of technological and entrepreneurial skills.

7 – Digital Entrepreneurship

Digital 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, it identifies and gathers 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 must make your brand more known and valued and, above all, get more customers. 

8 – Entrepreneurship of Large Companies

Entrepreneurship of large companies develops when a company has a finite number of life cycles. In fact, it is focused on 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 growing business 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.

9 – Cultural Entrepreneurship

Cultural 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 of gathering 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.

10 – Environmental Entrepreneurship

Alternatively known as green entrepreneurship. Environmental entrepreneurship 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.

11 – Private Entrepreneurship

As you rightly say, Private entrepreneurship begins in the private sector to promote entrepreneurship. Many times the Government provides various support services through private and public companies.

That encourages private initiatives to carry out business projects. In fact, a mutual relationship between the public and private sectors would make economic development faster and more balanced.

12 – Public Entrepreneurship

Public entrepreneurship is the type of entrepreneurship developed in the public sector to satisfy a market need. It is sometimes used when the private sector has no products to offer. Public entrepreneurs are people who proactively try to change things or bring forth benefits for the whole community. 

These entrepreneurs are often the ones who actively work with governmental or nonprofit agencies to generate innovative approaches that can meet the needs of societies, improve public services, and maximize social impacts.

Verdicts

These types of entrepreneurship highlight the diverse motivations and contexts in which entrepreneurship can occur, from small local enterprises to large-scale innovative ventures and socially impactful initiatives. However, entrepreneurs who believe their company can change the world, often seek rapid expansion and big profits through their creative strategies and practicals.