We live at a time when it’s easier than ever to be your own boss and do your own thing. Almost any idea can be a business with the existing technology and transportation infrastructures. This has recently caused more people to open up their own businesses. They seem to have found more satisfaction in running their own businesses despite the challenges than in the routine 9-5. In 2022, there are about 587 million entrepreneurs worldwide trying to be the next big thing in their respective industries. Regardless of the dreadful statistics that indicate that 9 out of 10 startups fail, people are willing to take any risk to escape the rat race and make a name for themselves.
Entrepreneurship is a very popular term. We see people’s LinkedIn profiles say Entrepreneur all the time, but what does that really mean? Put simply, entrepreneurship involves setting up a business that encompasses financial risk in hopes of generating profits in the long run. No matter the type of business you start, whether you start self-employed or with 100 employees, all entrepreneurial startups have one thing in common, innovation. Innovation is at the core of every entrepreneur and how they develop and run their businesses. This is why you would usually find entrepreneurs focused more on the idea rather than making money. Do you want to become an entrepreneur? Here are the 5 main types of entrepreneurship.
From its name, social entrepreneurship involves starting businesses that are socially conscious. Entrepreneurs working in this type of business aim to resolve social issues through their business, such as enhancing people’s access to food, money and education.
If you are creative, this type of entrepreneurship is right for you. Entrepreneurship in this category tends to revolutionise a particular industry with an idea or new way of doing something. This may involve creating a different process of manufacturing a product or finding new uses for a product. Most importantly, these ventures will drastically change people’s life. One example is the iPhone (calls, messages, GPS, music, and camera all in one product).
If you own a big business or know someone that does, you can easily tell that as the business grows, it starts to move slower. A smart way that bigger, already established businesses use to become more entrepreneurial is by acquiring a small entrepreneurial venture. The larger firm would support the development of the venture and help it grow.
Small businesses certainly do not have the funds to acquire an innovative venture. However, they must develop and enhance the business’s current processes and products to become more entrepreneurial. This involves several workshops, putting time and resources into research and development, and following the footsteps of existing entrepreneurs within the same industry.
This type of entrepreneurship starts with a big idea. However, as a budding new idea, the founder doesn’t usually have the needed funds to scale up the business. This is where venture capitalists (investors) come into place. Their investment adds enough liquidity to scale up the startup’s operations.
Which category of entrepreneurship suits you best? Are you ready to take that big risk? What do you need to ensure that your entrepreneurial business is a success? The answer is a solid financial foundation. And how can you achieve that? Through an innovative and experienced team of accountants. Where can you find such accountants? At Elena Meskhi & Co.
Get in touch to learn more about our services tailored to your business’s needs. Even if you are a small startup, we have services just for you. This includes crowdfunding.