Entrepreneurship is not defined by a single type. So, you think you got that unique idea? You find your investors, launch the business, start running it with a team of experts.
Sounds like simple enough, yes? Not quite.
Before you venture into starting your own business, get to know the four types of entrepreneurship:
- Small Business Entrepreneurship
In this day and age, small businesses still make up a huge chunk of entrepreneurship and startups in the world. The grocery store, the travel agent, the Salon and the street food vendor. People would consider these as small.
These are anyone who runs their own business, most of which are barely profitable. They usually hire family members or local employees to run their business with or for them. Their measure of success are simple such as being able to pay bills and indulge in small luxuries like travel.
- Scalable Startup Entrepreneurship
Groundbreaking web- and software-based businesses via social media like Facebook, Twitter, and Instagram. Large internet businesses like Amazon.com and eBay. Just some of the successful examples of scalable entrepreneurship.
Unlike small businesses, scalable startups are what entrepreneur hotspots like Silicon Valley, Shanghai, New York, and Bangalore do. These risk takers and their venture capitalist know that they have the possibility of changing the world.
A scalable business can increase its revenues without the additional sky-high incremental costs. When you create a product like Facebook, the majority of your startup cost goes into software development. When it takes off, its app is downloaded by an unlimited number of users worldwide without incurring significant additional costs. That’s when it’s mostly profit for the entrepreneurs like one of the world’s youngest billionaires, Mark Zuckerberg.
- Large Company Entrepreneurship
Corporate entrepreneurship is a process of developing new ideas and business opportunities within an established firm, leading to new business ventures and the improvement of organizational profitability, thus enhancing the competitive position of the existing firm.
Radically evolving consumer needs, new technologies, and market competitors create pressure for what entrepreneur calls “disruptive innovation” — which lends itself to corporate entrepreneurship.
The gargantuan SM Investments Corporation is a prime example of this. What started as Henry Sy’s foray into buying large supplies of shoes from the United States and selling those at his first company, SM Shoemart in Carriedo, Manila, back in 1958, has since expanded through the decades. It has evolved from a shoe store to a department store to a mall to what it is today: a holding company that invests in shopping mall development and management, retail, real estate development, banking, and tourism.
- Social Entrepreneurship
Social entrepreneurs are innovators who focus on transforming the status quo of the world by working on making it a better place. They are considered as today’s agents of change, solving social needs and problems by identifying the people and programs that are already bringing positive change and empowering them to extend their reach and deepen their impact in society by enriching their tools and resources.
Unlike scalable entrepreneurs, these innovators focus on improving the world as a whole, in lieu of making money for the founders. Basically, these enterprises are nonprofit, for-profit, or hybrid companies.
Some local examples of social entrepreneurs are: Hamlet Foods, in partnership with Gawad Kalinga — an organization that aims to eradicate poverty — is a company that produces meat products and sells them through food stalls called “Hamon” (directly translated in English as “ham,” but also means “to challenge” in the vernacular); and The Paper Project, makers of unique and handmade greeting cards for export, made by women survivors of human trafficking and sexual abuse.
Comments are closed.