Entrepreneurship is a popular term that is often thrown around, especially in business circles. But what exactly is entrepreneurship? And what types are there? While entrepreneurship is commonly associated with creating a new business venture, it actually encompasses several different types of businesses. In this article, we explore different types of entrepreneurship from social to lifestyle businesses.
Social Entrepreneurship
Social entrepreneurship is all about creating a business that is focused on a social cause. This type of entrepreneurship is primarily driven by a desire to create positive change in society. Social entrepreneurs are driven by the need to find solutions to existing social problems, whether it is by addressing poverty, improving healthcare services, or increasing access to education.
For instance, One Acre Fund is an organization that empowers smallholder farmers in Africa. The organization provides farmers with the tools and knowledge to grow their income and improve food security. Social entrepreneurship businesses often run as non-profits organizations, however, they can also be run as for-profit businesses.
Lifestyle Entrepreneurship
Lifestyle businesses are focused on entrepreneurs creating a business that provides a certain lifestyle. Such businesses are created to provide freedom and flexibility to the entrepreneur. In most cases, the business is started around the entrepreneur’s interests and passions to achieve a satisfying lifestyle.
For example, a person who loves baking might start a patisserie. They may not intend to grow the bakery into a franchise or a large business chain. They just run the business to maintain the lifestyle they desire. In most cases, these types of entrepreneurs opt for a bespoke approach, tailor-making products, and services for their customers, thus creating a very personal and customer-centric experience.
Small Business Entrepreneurship
Small business entrepreneurship is the most commonly known type of entrepreneurship. Small business entrepreneurs often start their business to create financial independence and build a profitable enterprise. These types of businesses are often operated by a handful of individuals, with limited reach, and primary operations are local markets. Such businesses range from restaurants to retail shops, cleaners, and cabinet makers, to mention a few.
These entrepreneurs may not have intentions to grow their business to become a household name or a giant business corporation. They tend to keep their business streamlined, pursue customer satisfaction, and maintain steady growth.
Corporate Entrepreneurship
Corporate entrepreneurship or intrapreneurship involves employees within a company coming up with new business concepts and driving innovation within the company. This type of entrepreneurship is common in large corporations. The business’s growth and development typically tend to take place through innovation within the company.
Intrapreneurs often present their innovative ideas to top management or a specific team that oversees the company’s innovation. Upon approval, the intrapreneur drives the idea to fruition within the organization.
Conclusion
Entrepreneurship comes in different forms, each targeting specific markets. Social, lifestyle, small business, and corporate entrepreneurship – each has unique goals, approaches, and objectives. While social entrepreneurship may be focused on philanthropy, small business entrepreneurship may be focused on the growth of the enterprise. Lifestyle entrepreneurship might reflect the entrepreneur’s passion while corporate entrepreneurship is focused on the growth of the overall organization. Understanding these various types of entrepreneurship is crucial to determine an entrepreneur’s motivations and to help them choose the right path that caters to their objectives.
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