Types of Entrepreneurship: Definitions and Examples

The process of developing, launching, and managing a business along with all the financial risks that it carries is known as entrepreneurship. In simple definition, the entrepreneur is someone who is in charge or control of the entrepreneurship venture. He or she is responsible for administering and building the business from the ground up and has to deal with challenges and hardships that are associated with the process. The entrepreneurs are often considered as the agents of change because of the impact that they have on the economy via their ventures.

There are various types of entrepreneurship and it can be broadly classified into four main types: Startups, Social entrepreneurship, Small businesses, and Large company entrepreneurship. Each of these types of entrepreneurship are distinct from the other and mainly varies based on the mode and scale of operation.

Characteristics of Entrepreneurship

Some of the vital characteristics of entrepreneurship are as follows.

1. Innovation: Innovation is precious and a gift in the world of entrepreneurship. This is why individuals who first come up with any idea tend to trump over others that offer the same services. Innovation can either be a new product or a new service. Innovation essentially presents a different and unique perspective on the existing products, or it launches a new product. 

2. Risk-taking capacity: Starting a new business involves an element of risk of failing. The entrepreneur should be completely aware of these risks that are associated and should be ready for evaluation plus tackling it when these risks emerge. This is why an entrepreneur needs courage and capability of taking risks as these are the foundation blocks of any successful business venture.

3. Vision: Every new venture or business needs a clear pathway or plan for the future to become a successful operation. The entrepreneur that has a clear vision for the company tends to have an edge over the competitors. 

4. Leadership quality: The entrepreneur who has an ideal plan for developing the business possesses the essential leadership qualities. A new business involses several factors and they need to work together in sync. This is where the leadership quality of the entrepreneur comes into play.

5. Confidence: The entrepreneurs should be confident of their ideas and have full faith in it. Without this confidence and belief, it would be very difficult to convince or motivate others including prospective partners and investors.

Importance of Entrepreneurship

Entrepreneurship is significant for the development of society in a broader sense. 

• Employment: Every new venture of entrepreneurship generates considerable employment for a significant amount of people. The startups also provide an excellent opportunity for people to sharpen their skills and gain experience.

• New products and ideas: Entrepreneurship is the hub for new innovative ideas. The small scale businesses or  startups always encourage employees to think of innovative ideas. These ideas are not only beneficial for the consumers but also help in the development of the business. 

• Economic development: Entrepreneurship plays a key role for pushing economic development by offering jobs and increasing the per-capita income of the economy. This improves the standard of living and there is an increase in demand for the consumption of goods which boosts the production and economy of the country.