If being a leader, taking calculated risks, and making an impact in the world sound exciting, becoming an entrepreneur is your calling. Entrepreneurship’s most widely known benefits are being one’s own boss and having the right skill sets to turn passion into profits. In fact, according to reports by the Global Entrepreneurship Monitor, 74.1% of entrepreneurs in the U.S. mentioned that building wealth was their motivation to start a business. However, entrepreneurs also play a far more important and fulfilling role in driving innovation and accelerating economic growth.
This guide sheds light on everything there is to know about venturing out as an entrepreneur—the different entrepreneurship styles, the importance and benefits of entrepreneurship, and effective ways to build entrepreneurial skills.
The 4 Most Common Types of Entrepreneurship
The entrepreneurial journey can be a challenging but rewarding experience. Irrespective of whether one is just starting a new endeavor or developing an existing business, understanding the various types of entrepreneurship is crucial to success.
While the fundamentals of entrepreneurship remain the same—planning, developing, and operating a business—the skills and abilities required as a business owner are likely to vary based on the type of business undertaken. The benefits of entrepreneurship, though, can be enjoyed by any kind of entrepreneur. To demonstrate, these are the four most common types of entrepreneurship that every budding entrepreneur should know about:
1. Small Business Entrepreneurship
Small business entrepreneurship is a business venture kick-started by a single individual without a goal to franchise or expand. In such businesses, owners only profit if the company does well, meaning they need to be more responsible, skilled, and committed. Typically, they invest their own money and make profits if the business succeeds. For example, a grocery store, restaurant, or retail shop would all demonstrate small business entrepreneurship. According to the Small Business Administration Office of Advocacy (SBA), small businesses employ more than 61.7 million Americans. That’s a clear indication of small business entrepreneurship being on the rise.
2. Large Company Entrepreneurship
It refers to big-scale companies like Google, Microsoft, and Apple. Such companies create new divisions within the existing framework or acquire smaller businesses. They do this to tap into new markets, expand their customer base, or implement new technology.
3. Scalable Startup Entrepreneurship
This type of entrepreneurship is rooted in identifying a business opportunity that allows for rapid but sustainable growth. Generally, it begins by offering a unique product or service, hoping for rapid business growth and significant financial gains. Such businesses usually require funding from venture capitalists or investors to expand into multiple markets.
An intrapreneur is someone an existing company hires to fulfill the role of an entrepreneur within the organization’s boundaries. In particular, intrapreneurs drive innovation in products, services, processes, etc., to enhance the company’s future. Furthermore, they will have the company’s resources at their disposal minus the risks involved, but not the same benefits as an entrepreneur.
The Importance of Entrepreneurship
Entrepreneurs play a pivotal role in the growth of the economy. However, the benefits of entrepreneurship and its significance in society go beyond just the business world. Entrepreneurship has resulted in genuinely radical innovations that have transformed global economies.
To illustrate, here are some other ways in which entrepreneurship is essential to society:
Entrepreneurs successfully create new market products and services, generating more revenue for their companies. Consequently, this increases the overall national income and contributes to economic growth. In developing countries, important benefits of entrepreneurship include decreased unemployment and better economic growth. In contrast, in developed countries, it is a source of social innovation, creates new markets, and drives innovation.
Entrepreneurship brings innovation to every aspect of business by using resources effectively. It, therefore, develops new markets and introduces improved products and technology.
Entrepreneurs are pioneers in introducing new, powerful technologies that can transform society. These transformations include lifestyle changes, improved economic choices, and better morale. In addition, such social changes can sometimes have a national and global impact.
Entrepreneurs promote community among people with common goals, whether in a local neighborhood or across continents. Their products and services contribute to the social and economic development of said community.
What are the 15 Benefits of Entrepreneurship?
The entrepreneurial path offers personal freedom and creativity, making it one of the most fulfilling careers. Besides this, from the flexibility of working hours to job satisfaction, the rewards of entrepreneurship are tough to resist.
In this section, we highlight the many benefits of entrepreneurship to inspire aspirants to make informed choices while building a business. Let’s, therefore, look at some of its advantages:
1. A Growth Mindset
As the business expands, one must constantly adapt to market shifts and overcome new challenges. This cultivates a growth mindset that encourages entrepreneurs to keep learning, progressing, and seeking opportunities for personal and professional growth
2. Unique Experiences
No two days are the same in the life of an entrepreneur. There is always a to-do list with new tasks and demands that will keep them on their toes. Moreover, entrepreneurs meet new people, gain deeper insights into topics, and expand their knowledge.
3. A Rewarding Career
According to Zippia, 63% of Americans say entrepreneurship is a good career choice. While entrepreneurship is a high-risk, high-reward endeavor, entrepreneurs also have the opportunity to change lives by turning innovative ideas into reality.
The traditional trappings of a regular job can be frustrating for many. On the other hand, entrepreneurship allows one to avoid a fixed schedule and create their own routine. What’s more, having flexible work days can significantly improve both physical and mental well-being.
5. Work-Life Autonomy
Entrepreneurs can set their own boundaries in terms of managing their workload. This gives them the time to prioritize personal goals and get back to work when needed. Besides, this autonomy also ensures that they remain motivated, invested, and involved in their work.
6. Flexibility to Work Anywhere
An entrepreneur’s job is rarely limited to a work desk. They can leverage the freedom to work anywhere that sparks their creativity and productivity. For example, a cafeteria, a park, or even from their home.
All entrepreneurs aim to develop products or services that meet consumer requirements. Being at the forefront of innovation, entrepreneurs improve their standard of living by introducing new technologies and business models.
8. Positive Impact
Entrepreneurship is a great tool for initiating positive change in the world. Socially responsible businesses may be more attractive to customers while positively impacting society.
9. Freedom to Choose People to Work With
Entrepreneurs can choose clients, employees, and business partnerships they want to pursue. In addition, they have complete control over who they work with and how they want to build the company culture.
Entrepreneurs are their own bosses and completely control business operations. Besides, they also have the freedom to make their own decisions and tailor the work environment as per their vision.
11. Networking Opportunities
Entrepreneurship draws opportunities to build strong connections with industry professionals and like-minded people. Expanding one’s network is a great way to find inspiration and take the business to the next level.
12. Job Opportunities
A growing business will create job opportunities to hire employees across various company segments. This benefits both the employees and the company while driving economic growth.
13. Managerial Skills
First-hand experience as an entrepreneur can help one identify and develop managerial abilities. This may include enhanced leadership skills, business knowledge, and time management, among other things.
14. Potentially Unlimited Income
In a traditional job, the income is limited to the company’s salary and benefits. In entrepreneurship, a good business idea and execution leads to a high earning potential where entrepreneurs define their own income.
15. Sense of Fulfillment
Starting a business involves bringing a vision to life through a service or product. One can create a successful venture by doing something they are passionate about. Moreover, seeing the positive impact of the business will create a strong sense of purpose and fulfillment.
Are You Considering Upscaling Your Entrepreneurial Skills?
In conclusion, there is no better time to kick-start that entrepreneurial journey than now. For aspiring entrepreneurs looking for the right academic platform to help them learn, Emeritus is the place to be. Find a list of online entrepreneurship courses that eminent universities offer from around the world. It’s the best way to learn the foundational skills to pursue a fulfilling career as an entrepreneur.
By Neha Menon
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Originally published in January 2023, this blog post was updated in May 2023.