Entrepreneurship -

Types of
Entrepreneurship
Table of Content
 Meaning
 Types of Entrepreneurship
 Characteristics
 Importance
 Nature of entrepreneurship

Concept of Entrepreneurship
Entrepreneurship is the ability and willingness to develop,
organize and run a business enterprise, along with any of
its uncertainties to make a profit. The most prominent
example of entrepreneurship is the starting of new
businesses.
In economics, entrepreneurship connected with land,
labor, natural resources, and capital can generate a profit.
The entrepreneurial vision is defined by discovery and
risk-taking and is a vital part of a nation’s capacity to
succeed in an ever-changing and more competitive global
marketplace.
Meaning of Entrepreneur
 Someone who has the ability and desire to establish,
administer and succeed in a startup venture along
with risk entitled to it, to make profits.
 The best example of entrepreneurship is the starting
of a new business venture.
 Entrepreneurs are often known as a source of new
ideas or innovators, and bring new ideas into the
market by replacing old ones with new in ventions.
  It can be classified from small or home businesses to
multinational companies. In economics, the profits
that an entrepreneur makes are with a combination of
land, natural resources, labor, and capital.
In a nutshell, anyone who has the will and
determination to start a new company and deals with
all the risks that go with it can become an
Entrepreneur.
Top 8 Differences Between Businessman and
Entrepreneurs
Businessman and Entrepreneur
It is a common assumption that businessperson and
entrepreneur are the same, but both words refer to a
different individual possessing a distinct approach to
business. put it in other words, a businessman follows a
set path engraved by some other person with an
unoriginal idea, whereas an entrepreneur thinks and
believes in making his path with new ideas.
In the future, an entrepreneur can become a
businessperson. However, between businessperson and
entrepreneur, there is a thin line difference businessperson
is a market player, whereas, the entrepreneur is a market
leader.
Who is a Businessman?
A businessperson is an individual who operates or starts a
business with the same old business idea. The
businessperson chooses to do business that is high in
demand or gives him maximum profits in return. The firm
faces stiff competition because many companies already
exist in the market and have the same business ideas.
However, the risk factor is very less as the concept has
been tried and tested by other existing companies, so the
chance of failure is low.
Who is an Entrepreneur?
An entrepreneur is an individual who has an exclusive
idea to initiate and establish a new venture and bring a
change in the world. An entrepreneur is highly creative
and innovative, takes a risk, and endures the
unpredictability of business. A business started by
entrepreneurs with a new concept for the first time is
known as Start-up.

Businessman Entrepreneur

Definition

A businessman is an individual An entrepreneur is an

who operates or starts a business individual with an exclusive
with the same old business idea. idea to initiate and establish
 a new venture

Market state

Market player Market leader

Market

Makes his place in the market Creates a market

Risk factor

Less Approximately high

Procedure

Traditional/Ordinary Unconventional

Focus

Profit Employee, customer, and

public

Competition
Extremely High Low

What are the 4 Types of Entrepreneurship?

It is classified into the following types:
1. Small Business Entrepreneurship-
These businesses are a
 Hairdresser
 Grocery store,
 travel agent,
 consultant,
 carpenter
 plumber
 Electrician etc.
These people run or own their businesses and hire family
members or local employees. For them, the profit would
be able to feed their family and not make 100 million
business or take over an industry. They fund their
business by taking small business loans or loans from
friends and family.
2. Scalable Startup Entrepreneurship
This start-up entrepreneur starts a business knowing that
their vision can change the world. They attract investors
who think and encourage people who think out of the box.
The research focuses on scalable business and
experimental models, so, they hire the best and the
brightest employees. They require more venture capital to
fuel and back their project or business.
Examples
Facebook,
Instagram
Uber.
Amazon, Draz, etc.
3. Large Company Entrepreneurship
These huge companies have defined life cycles. Most of
these companies grow and sustain by offering new and
innovative products that revolve around their main
products. The change in technology, customer
preferences, new competition, etc. Large companies often
create new products and services based on consumer
preferences to meet market demand.

Examples
Google
Microsoft
 Samsung
Social Entrepreneurship
This type of entrepreneurship focuses on producing
products and services that resolve social needs and
problems. Their only motto and goal are to work for
society and not make any profits. The introduction of
freshwater services through the construction of new
wells is another example of social entrepreneurship. A
social entrepreneur may have the goal of providing access
to communities that lack stable utilities of their own.

Characteristics of Entrepreneurship
Not all entrepreneurs are successful; definite
characteristics make entrepreneurship successful. A few
of them are mentioned below:
Ability to take a risk- 
Starting any new venture involves a considerable
amount of failure risk. Therefore, an entrepreneur needs
to be courageous and able to evaluate and take risks,
which is an essential part of being an entrepreneur.

Innovation
 It should be highly innovative to generate new ideas,
start a company and earn profits. Change can be the
launching of a new product that is new to the market or
a process that does the same thing but more efficiently
and economically.
Visionary and Leadership Quality-
 To be successful, the entrepreneur should have a clear
vision of his new venture. However, to turn the idea into
reality, a lot of resources and employees are required.
Here, leadership quality is paramount because leaders
impart and guide their employees toward the right path
of success.
Open-Minded
 In a business, every circumstance can be an opportunity
used for the benefit of a company.
For example, Paytm recognized the gravity of
demonetization and acknowledged the need for online
transactions would be more, so it utilized the situation
and expanded massively during this time.
Flexible
An entrepreneur should be flexible and open to change
according to the situation. To be on the top, a
 businessperson should be equipped to embrace change
in a product and service, as and when needed.
Know your Product
A company owner should know the product offerings
and be aware of the latest trend in the market. It is
essential to know if the available product or service
meets the demands of the current market, or whether it
is time to tweak it a little. Being able to be accountable
and then alter as needed is a vital part of
entrepreneurship.

Importance of Entrepreneurship
Creation of Employment
Entrepreneurship generates employment. It provides an
entry-level job, required for gaining experience and
training for unskilled workers.
Innovation
It is the hub of innovation that provides new product
ventures, market, technology, quality of goods, etc., and
increase people’s standard of living.
Impact on Society and Community Development- 
 A society becomes greater if the employment base is
large and diversified. It brings about changes in society
and promotes facilities like higher expenditure on
education, better sanitation, fewer slums, and a higher
level of homeownership. Therefore, entrepreneurship
assists the organization towards a more stable and high
quality of community life.
Increase Standard of Living
Entrepreneurship helps improve a person’s living
standard by increasing income. The standard of living
means an increase in the consumption of various goods
and services by a household for a particular period.
Supports research and development-
New products and services need to be researched and
tested before launching in the market. Therefore, an
entrepreneur also dispenses finance for research and
development with research institutions and universities.
This promotes research, general construction, and
development in the economy.
Entrepreneurship

Nature of Entrepreneurship
Creation of Enterprise
Entrepreneurship is a process that refers to the creation and running of a new
enterprise. It is an activity under which a person called an entrepreneur starts
a new venture using a new idea.
Economic Activity
Entrepreneurship is an economic activity as it involves creating and running a
new business through optimum utilization of all combined resources. It
ensures that all scarce resources are efficiently used for deriving better
returns in the form of profit. 

Innovation and Creativity

It is the process of discovering new ideas and concepts and implementing
them in business ventures. Entrepreneurship involves bringing innovation into
the market by introducing new products or process that delivers better service.
Risk Bearing
It is an activity, which involves huge risks, which every entrepreneur needs to
undertake for starting a venture. New ideas developed and implemented by
the entrepreneur are uncertain and may result in losses.

Profit
Profit earning is the sole objective of an entrepreneur for undertaking risk.
Entrepreneurs start new ventures to earn profits.

Gap Filling
Entrepreneurship is a process of recognizing and filling the gap between
customer needs and available products or services. It focuses on removing
the deficiencies from the currently available products to fulfill the needs of
customers.

Organizing Function
An organizing function brings together different factors of production like land,
labor, and capital. Entrepreneurship is concerned with coordinating and
managing all resources engaged within the enterprise.

Frequently Asked Questions on Entrepreneurship

Who is the father of entrepreneurship?
Joseph Aloes Schumpeter is regarded as the father of
entrepreneurship. He introduced the concept of
entrepreneurship.
What are the two main types of entrepreneurship?
There are many types of entrepreneurship, two examples
of such are:
Small business entrepreneurship
Large company entrepreneurship
What are the key concepts of entrepreneurship?
 Innovation
 Risk-taking
 Vision
 Organization
What are entrepreneur traits?
Some of the most important entrepreneurial traits are:
1. Passion
2. Risk-taking ability
3. Persisting nature
4. Innovative
5. Leading from the front
6. Ethical in nature