Author Topic: Types of Entrepreneurship  (Read 714 times)

Offline Naznin.Tania

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Types of Entrepreneurship
« on: January 25, 2015, 03:16:17 PM »
The term “entrepreneurship” has traditionally been used to describe the activity of an economic agent whose function it is to introduce innovative changes into the means and relations of production inherent in an economy. In this guise, the entrepreneur streamlines already existent production processes either through the innovative use of current technology, or streamlines production through the employment of new technologies. In addition to this, the entrepreneur may also create new services or products in response to market demand. If the products and services offered in an economy are seen to evolve, the entrepreneur is the agent that aids the evolution, perceiving and then addressing market inefficiencies and gaps by channeling investment capital away from underperforming entities into more productive organizations. In current popular usage, however, “entrepreneurship” has come to describe a particular mind-set that can be seen to denote any pioneering and innovative endeavor that addresses the inadequacies of current norms and practices. It is thus that the terms Social Entrepreneurship, Political Entrepreneurship and Knowledge Entrepreneurship appear regularly in the press and media.

There are probably as many different types of entrepreneurs as there are people, since one of the great joys of being an entrepreneur is the freedom to invent and re-invent yourself and your business to meet your requirements and the needs of the market in which you operate. That’s why agility, flexibility and future focus are clear advantages to successful entrepreneurs and most would resist being placed in any kind of box, and often defy description in the breadth and diversity of their activities.
That said, there are a number of general categories by which entrepreneurs can be loosely described, as shown here.

Social Entrepreneur
The social entrepreneur is primarily motivated by a deep desire to improve upon, or fundamentally change, prevailing and detrimental socio-economic, educational, environmental or health conditions. A rapidly growing and vibrant sector, social entrepreneurs play an important role in providing products and services with the overall intention of creating social good, operating from a triple bottom line perspective of people, planet, and profit.  Profit is often reinvested into the enterprise rather than being distributed to shareholders. There are different models of operation and varied legal structures to create such companies, and they are distinct from charities in being self-sustaining through income.

Many people seeking to find meaning in their work are turning to social enterprise as a means of combining their desire to help others and make a difference with their ambitions to succeed in a worthwhile business. This means the demographic spread of social entrepreneurs is right across the spectrum from young to old and from every type of background and education.
Organizations such as Divine Chocolate, Belu and the Big Issuein the UK are social enterprises, and one of the most famous global ventures is the Grameen Bank which was started in Bangladesh by Nobel Peace Prize winner Muhammad Yunus.

“Social entrepreneurs are people who recognize social problems, decide to roll up their sleeves and get into action using entrepreneurial principles to organize, create, and manage a venture to implement social change that is sustainable, good for the planet and for the highest good of humanity.”
Christophe Poizat, Founder & President of International Network of Social-Eco Entrepreneurs (INSE).


Serial Entrepreneur
The serial entrepreneur consistently conceptualises and executes business models that s/he intends, ultimately, to sell to shareholders, investors, or other businesses. Serial entrepreneurs can be seen to take on relatively high amounts of risk, display an ability to effectively handle the accompanying stress as they are usually very adaptable to changing conditions, and more often than not display a pattern of success (despite some failures) in the long run. Serial entrepreneurs display a definite propensity to recover both, economically as well as in confidence, from business and personal failures. Serial entrepreneurs set up businesses, and bring them to a stage of development where they can move on either by selling according to a pre-determined exit strategy, or place the enterprise in the hands of a successor or group of successors whilst retaining some degree of investment and/or strategic input, whilst they start their next venture, with a view to repeating the process again.

Lifestyle Entrepreneur
The central characteristic of the lifestyle entrepreneur is the attempt to create profit from personal passion. If, for example, an individual has a passion for the internet, they may start a site from which shoppers can buy online. This is to say that the “lifestyler” tries to discover innovative ways in which a personal passion can translate into enough profit from which a living can be earned. More so than the above two entrepreneurial types, the lifestyle entrepreneur aims to be self-employed. S/he is not in the trade of building business models to sell, and is instead a practitioner of a specific trade or profession that attempts to break away from the mainstream in order to build a sustainable business from which a living allowance can be drawn over a long-period of time. It is thus that the lifestyle entrepreneur often invests heavily in his or her own business, rather than cede substantial control to an individual or group of investors. In this type of business model, the entrepreneur assumes personal risk, but is rewarded (if the business survives) with independence and autonomy from authority structures. If, for example, you have a passion for the internet and see yourself as a lifestyle entrepreneur you might want to start an e-commerce site. In this case you’re quite fortunate as start-up costs will be relatively low: all you might have to do is buy a laptop and obtain a reliable, fast internet connection.

Solopreneurs
The ‘one man band’ – An individual who operates alone in an enterprise and manages all aspects of the business themselves. Increasingly possible and prevalent with the advent of the internet, email, VOIP, etc and the consequent ability to perform multiple tasks, coupled with the ease of outsourcing to other freelancers through the ready supply available through websites.


http://resourcefulentrepreneur.com/types-of-entrepreneurs/
http://www.maxum.co.za/types

Tania Naznin
Sr. Admission Officer
Daffodil International University
E-mail: counselor1@daffodil.university