Amid the increasing number of business closures, laid-off workers, and salary cuts, the numbers of startup businesses grew at an all-time high.
There are roughly 4.5 million business applications in the U.S. before the year ends in 2020. This is a 24.3 percent increase from 2019 and 51.0 percent raise on the average of 2010-19 (O’Donnell et al., 2021; Census Bureau, 2021). Survey says that entrepreneurs describe this pandemic venture as optimism, self-reliance, and a digital-first mindset (Grossfeld, 2021). Entrepreneurship became the avenue for the people to start anew and ease the impact of the crisis.
While there are plenty of ways to become an entrepreneur, anyone interested in starting a business should consider choosing one model of reference: social entrepreneurship, innovation entrepreneurship, small business entrepreneurship, big business entrepreneurship, or scalable start-up business entrepreneurship.
Entrepreneurs taking the path of social entrepreneurship designed their businesses for the benefit of the people and society. It induces social change through products and services that help resolve social issues and public dilemmas. The goal is to make the world a better place. Nonprofit, for-profit, or hybrid companies count as long as they serve their purpose more than creating profit and wealth. Ethical practices are eminent especially on conscious consumerism and corporate social responsibility. Businesses related to food security, environmental conservation, women empowerment, and cause-advocacies are examples of social entrepreneurship.
All entrepreneurs may be a risk-takers by nature but not innovators. Innovative entrepreneurship is inventors that turn new ideas into business. They are great minds that set new trends in the market and create demand for new products and services. They are the business leaders. The chief in improving business processes and policies. Innovative entrepreneurs change how people live and view things. At present, technopreneurship and cyberpreneurship are considered innovative entrepreneurship.
Big Business Entrepreneurship
Big business entrepreneurship or large company entrepreneurship is the market institution that provides constant growth and innovation through high-level professionals and business expansion. The company hired skilled personnel with advanced knowledge and competitiveness to sustain the business standing. Further, big businesses expand by taking over small companies with promising backgrounds to provide variants of products and services within their same line. The main goal of this entrepreneurship is to acquire new markets and have a bigger customer base. One unique feature is that they built a company culture that centralized their huge network.
Small Business Entrepreneurship
One of the most common entrepreneurship is the small business model. In the U.S there are 31.7 million small businesses registered as of 2020. This number falls and grows as small businesses are prone to failure more than success. They are modest innovators but huge risk-taker. Small business enterprises started with limited resources and capital. They usually use their savings and investments, or a loan for the startup. When compared to big business entrepreneurship, small businesses are normally based on the local markets and are made up of people coming from the members of the family or own community. They are grounded and provide the basic products and services that the neighborhood needs. For example, restaurants, dry cleaners, hair salons, fitness gyms, and so on.
Scalable Start-up Business Entrepreneurship
This type of entrepreneurship hatched from one business plan that could make a massive impact on the market. This is a unique idea that spots what is missing and provides a solution to fill in the gap. As the name suggests, this is a scalable start-up meaning people in the business have already foreseen the potential return from the get-go. Thus, commonly venture capitalists and investors funded such projects in exchange for promising income and profits. Despite the rapid growth of the scalable start-up business, entrepreneurs must have long-term plans for innovations and development to sustain the profitability and market value of the business.
If you are an entrepreneur or planning to be an entrepreneur, what model does your business fall into?
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Blasbalg, C. L. (2021, July 8). 10 most common types of entrepreneurship. Wix Blog. https://www.wix.com/blog/2021/07/types-of-entrepreneurship/#viewer-31pqj
Entrepreneurs started businesses in record numbers during the Pandemic. (2021, June 29). Salesforce. https://www.salesforce.com/blog/small-business-pandemic-entrepreneurs/
Indeed Editorial Team. (2021, June 7). 12 different types of entrepreneurship. Indeed. https://in.indeed.com/career-advice/career-development/types-of-entrepreneurship
O’Donnell, J., Newman, D., & Fikri, K. (2021, February 8). The startup surge? Unpacking 2020 trends in business formation. Economic Innovation Group. https://eig.org/news/the-startup-surge-business-formation-trends-in-2020
Taylor, D. (2020, October 28). 5 types of entrepreneurship: Which one should you pursue? The Blueprint. https://www.fool.com/the-blueprint/types-of-entrepreneurship/