An entrepreneurship is the process of creating a business from an innovative idea that solves one or several problems of a group of people. This brief definition accounts for the general concept but, in practice, there are different types of entrepreneurship.
In this article we are going to explain what each type of venture consists of, so that you can identify the one that best suits your business idea. At the end of the post, you will find some tips that will help you boost your entrepreneurial skills.
An enterprising person sees an opportunity everywhere. Entrepreneurs are enthusiastic and positive; where many see problems, they are figuring out how to fix them.
But what is an entrepreneur? They are usually people who take risks and make sacrifices to achieve their objectives and goals. However, as one might think, not all those who undertake have the same characteristics or pursue the same type of entrepreneurship.
If you want to exploit your attributes, you must first identify what your traits are as an entrepreneur and thus use them to your advantage. You should also know the most common types of ventures in order to be inspired to enter the business world in one of these areas.
Types of entrepreneurship
To develop this categorization, we take into account aspects such as the purpose of the venture, the initial investment, the type of solution it develops, and its impact on society.
Based on these variables, we define 6 types of entrepreneurship:
- small business
- scalable entrepreneurship
- social entrepreneurship
- Mirror or imitation entrepreneurship
- opportunistic entrepreneurship
- incubator entrepreneurship
Let’s look at each one in detail.
1. Small business
These are sole proprietorships, with certain exceptions where there may be one or two more partners. They are also known as micro-enterprises and are characterized by having a low initial investment.
Likewise, they are considered local enterprises, which seek to distribute their products or services within the limits of their city.
An example of this type of entrepreneurship in Argentina are the micro and small companies of the acronym MiPyME.
2. Scalable entrepreneurship
Scalable ventures seek to have exponential growth in the short and medium term. They are born with the aim of expanding rapidly and becoming multinational companies.
They are usually companies associated with the technological world and some examples of them are mobile applications such as Netflix, Facebook and Instagram that were designed to satisfy millions of people.
3. Social entrepreneurship
The main objective of this type of entrepreneurship is to generate a positive impact in your community and the world.
Those who carry out social enterprises usually develop their initiatives in sectors related to education, health and the environment.
4. Mirror or imitation entrepreneurship
They are those who replicate an idea that was or is being successful in the market. You can imitate a product, service or a business model. Franchises are an example of mirror ventures.
To acquire this type of business it is necessary to have a significant investment, due to the high cost of paying for a recognized brand.
5. Opportunistic entrepreneurship
As its name indicates, this type appears at the opportune moment to solve a specific and urgent need. During the pandemic, for example, this type of company arose that began to manufacture chinstraps in large quantities.
What characterizes these businesses is the vision of the entrepreneur, his creativity and his ability to execute quickly.
6. Incubator entrepreneurship
Unlike the opportunist, the incubator venture focuses on investigating what are the permanent needs of the market to offer an innovative solution.
This type of enterprise requires a large investment, to carry out the investigations that allow it to reach correct conclusions about the needs of the niche that they are analyzing.
