In economics, entrepreneurship is mostly identified by the person’s eagerness and risk-taking ability to project their business into the realm of success and adopt changing ways to keep up with the increasingly competitive global market. All the entrepreneurs have one thing in common, that is, to bring their thoughts into action and their ideas into a reality. They think of creative and innovative ways to bring about a change in the way our world functions.
As seen from the entrepreneurship definition in economics, entrepreneurs are the individuals who bring the concept of entrepreneurship into action. They are the ones who take into account all the risk factors and then jump head-first into their new idea of a venture equipped with thoughts and careful planning to make their business a success. They administer and manage the way their business is going to function and think of ways to improve the whole process. They are the ones responsible for replacing old and outdated ways and ideas and replacing them with a new and improved version.
There are many ways a person can be termed as an entrepreneur. Whether it is by running their own home business, or by administering a large, multinational corporation, entrepreneurs can come in all sizes. Overall, it may be said that anyone can be an entrepreneur as long as they possess the ability to tackle risky situations and have a willingness to start their venture.
Different types of entrepreneurship
There are many types of entrepreneurship. However, only four of them are mentioned below:
Small business entrepreneurship
Small business entrepreneurship refers to the businesses that are mostly funded by friends, family, or by small business loans. These businesses serve one purpose which is to make enough profits to make a living out of it.
There are many examples of small business entrepreneurship that exist within our society. Some of them include plumbers, grocery stores, hairdressers, and electricians.
Large company entrepreneurship
Large company entrepreneurship is the one that operates on a large scale. They bring new and innovative products in the market to keep up with the customers’ demands and to attain their satisfaction. They have a high competition and are therefore under a lot of pressure to manufacture and provide a product to their on par with the new technology. It is for this reason that enterprises that are among the large company entrepreneurship either buy innovation companies or try to manufacture the product themselves.
Examples of large company entrepreneurship include Microsoft, Apple, Google, etc.
Scalable Startup entrepreneurship
Scalable startup entrepreneurship is undertaken by those entrepreneurs who want to dive into the market with a vision to bring a change to the world. It is with this vision that they approach different investors and tries to persuade them to lend them venture capital. They aim to hire the best employees for their business.
Scalable startup entrepreneurship has a high-risk factor which is why they only make up a small proportion of all businesses.
Social entrepreneurship deals with entrepreneurs who wish to solve social problems and needs through their products. They work with the major aim to make the world a better place for everyone to live in. It is for this reason that social entrepreneurship businesses work with no regard to profit and can, therefore, be non-profit as well.
Examples of social entrepreneurship businesses include Echoing Green Inc., Grameen Bank, Solar Sister, and The Adventure Project.
Importance of entrepreneurship
Entrepreneurship holds much importance, not only because it can generate wealth and improve the standards of living for the business owner, but also because it generates wealth for the related businesses as well. Besides this, entrepreneurship also generates employment for the people and encourages them to come up with new ideas that can transform the world for the people. It provides jobs to people at all levels. Whether it is an entry-level job or one at the managerial level, entrepreneurship provides training and experience to its employees.
Entrepreneurship also contributes to a better standard of living for the people. This is because with more people who are employed can afford necessities of life such as food and shelter, the quality of life can immediately be improved. Entrepreneurship provides people with a chance to promote facilities such as a better education system, better sanitation, and a higher level of homeownership.
In conclusion, entrepreneurship definition in economics is limited. In reality, the true definition of entrepreneurship runs a lot deeper than that.
What is entrepreneurship in economics?
As seen from the entrepreneurship definition in economics, entrepreneurs are the individuals who bring the concept of entrepreneurship into action. They are the ones who take into account all the risk factors and then jump head-first into their new idea of a venture equipped with thoughts and careful planning to make their business a success.
Why Entrepreneurship is Important?
Entrepreneurship is very important for economic growth, not only because it generates wealth and improves the standards of living for the society, but also it creates employment. It is a necessary and important driver of economic growth and innovation.
Waqar Hussain is the founder of The Business Goals. He writes about entrepreneurial strategies and is an SEO consultant by profession. He is a B.Com, GDM, and an MBA from the Australian Institute of Business.