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Becoming an entrepreneur can be one of the most simultaneously challenging and rewarding career paths. Whether you’re the CEO of a major company or the co-founder of a small business, entrepreneurs are united by their hustle, drive, and their desire to make their mark on the world.
What Is Entrepreneurship?
Entrepreneurship is the practice of creating, developing, and running a new business. Launching a business venture often involves great financial risk, so entrepreneurship necessarily involves weighing the risk of losing money with the potential rewards that can be gained by a successful business model.
By strict definition, an entrepreneur is anyone who creates and runs their own business. Yet the modern understanding of entrepreneurs encompasses a broader scope of ambition and responsibility. Entrepreneurs are often perceived as risk-taking innovators whose pursuit of opportunity can fundamentally change the world by introducing new products or ideas. Countries like the United States also rely on entrepreneurs as a source of economic development and growth.
What Are the Benefits of Being an Entrepreneur?
Though becoming an entrepreneur comes with substantial financial risk, there are many benefits to entrepreneurship as well. For people who do not like the strict structure of a corporate job, entrepreneurship allows you to work on your own terms, meaning that you can set your own hours, be your own boss, and work from anywhere you want.
The 4 Different Types of Entrepreneurship
Though the definition of entrepreneurship is considered fluid and constantly evolving, there are a few different types of entrepreneurship that most entrepreneurial ventures fall into:
- Small Business Entrepreneurship. The definition of a small business varies by industry, and could mean anything from 50 to 1,500 employees or could be anywhere from $700,000 to $38 million in sales. Oftentimes, a small business entrepreneur is unable to operate at the scale required to interest venture capital, so they must rely on family, friends, and various types of small business loans to fund their business development.
- Large Company Entrepreneurship. Large company entrepreneurship operates within the confines of established, successful, often publicly-traded businesses. Yet even businesses with stable market shares and customer bases require entrepreneurial spirit and fresh business ideas to account for shifts in consumer tastes. Large companies must constantly seek new markets and innovative products in order to ensure sustained economic growth.
- Scalable Startup Entrepreneurship. Scalable startups are common amongst successful entrepreneurs in Silicon Valley. Their business plan involves developing new ideas or new products that are innovative enough to change the world, hoping to attract venture capitalists and angel investors to fund their innovative product. Scalable startup entrepreneurs are often major risk takers who believe so strongly in their business ideas that they are willing to leverage large amounts of capital in hopes of eventually gaining an even larger financial return.
- Social Entrepreneurship. Social entrepreneurs share a desire to make products and services that solve problems and produce positive social change. Social entrepreneurs are concerned with both achieving a positive, real-world impact and the company’s bottom line. Nonprofits and B-Corps are a result of social entrepreneurship.