Being an entrepreneur is not just about starting and managing a business but also becoming an active member of that firm for the sole purpose of growing and succeeding. Entrepreneurs are keen in managing their own businesses either an existing or even an innovative company and striving hard to expand their capacity. They seek financial investors, assistance from former partners and close family members to support the launch of their business. Entrepreneurs ensure that they have a great financial, marketing and business plan with deep understanding about their goals, objectives and how to handle risks in an efficient manner. Hence, if you are an aspiring entrepreneur who wants to begin a business venture, you must be aware of what type of entrepreneurship you are going to do. So what kind of entrepreneurial model would you aspire to pursue?
Here are the 4 different forms of Entrepreneurship
1. Small Business
Pursuing a small business could mean establishing a firm, convenience store and eatery without intending to expand the enterprise to a chain of stores and the like. You can only have a single business in a limited location and market with an initial plan of growing it. Small business owners often utilize their own savings to get started and the net income will be obtained once the business has been successful. Small business entrepreneurs aim to generate profit from the beginning stages of the business since they usually invest huge amounts of their money or savings into it. They desire to get it back as soon as they can.
2. Scalable Startups
This type of venture often starts from a small seed or scale and it can become a larger company. Outside investors are welcome to invest in this type of enterprise so it gives more resources and chances to Scalable starters to implement their strategic plan and grow the business even little by little or into something larger. That is called Venture Capital Financing. The technique is to get started in a modest scale of business with a target goal for company expansion unlike small business entrepreneurs. The scalable starters or entrepreneurs use the profits or revenue from the business to reinvest it again to the same firm in order to achieve a faster growth and range.
3. Large Firm or Organization
Larger companies implement business development and innovation through meeting the changing needs and wants of their market. This may include adding additional departments in the company that will manage the newly created product lines. They aim to acquire new market share and widen the business capacity in providing their products/services. Through researching, larger companies may tend to obtain new types of firms due to their resources and investment standing. This will be a joint venture that will eventually widen your company’s size, offerings, and scope. For instance, if you own a Real Estate Company in New Jersey offering property management services and you plan to acquire a Real Estate Brokerage Firm. Then you cannot only deal with tenants but also to clients looking for home buyers in New Jersey. The brokers will assist them to find the right and lucrative deal.
4. Social Entrepreneurship
This form of entrepreneurship is completely different from the previous topics that have been discussed. The purpose of social entrepreneurship is to provide social change or solution to address major detriments in community. Social entrepreneurs exert huge efforts and take calculated risks to formulate useful ideas for other people’s welfare. In layman’s terms, their sole purpose of establishing the firm is to achieve social change without the desire to earn income. The well-known examples of this organization are the nonprofit firms like charities and foundations. These organizations are being funded by volunteer investors to conduct their primary goals like to help people in their livelihood, education, social problems and overall welfare. They will carry out sponsorships, grants like scholarships and disaster support and the like.