Being an entrepreneur is a dream for many. The idea of being the boss and watching your ideas take shape into a company or endeavor can be appealing. While there are many steps on the road to becoming an entrepreneur, one of the most critical steps is identifying the type of entrepreneurship you want to be a part of. Below are some of the most common entrepreneurships and what they entail.
Small businesses are one of the largest types of businesses across the U.S. and can be formed across various types of industries. These businesses often start with a founder who may not have intentions to expand their business into a chain, franchise, or conglomerate. Typically, small businesses are started solely on the founder's funds and potential revenue will depend on the success of the business. Many entrepreneurs start these types of businesses to support themselves and their families, though the dream is often to expand one day.
Typically headline-making entrepreneurs fall in the category of scalable startup entrepreneurship. Scalable startups are often created to fill a gap in a market. These are the type of entrepreneurs that set out to make an impact and believe that their idea or product will do just that. Assessing problems in a market, scalable startups aim to create a solution. Majority of these businesses are usually technology focused. While many entrepreneurs will put some of their money in to get started, most of the funding will typically be raised by outside investors.
Large business entrepreneurships typically occur when a company has a limited amount of life cycles. Usually characterized as advanced professionals, these entrepreneurs strive on innovation. Rather than creating a business from scratch, some choose to work within the frame of an already established company. Typically after doing thorough market research, this type of entrepreneur will find a demand in a market that their current business employer could use to improve upon. Large company entrepreneurship can also happen through the process of mergers and acquisitions of smaller businesses.
Socially conscious entrepreneurs innovate and develop products and services to provide answers to social problems. The focus is not to make a profit, but to create beneficial change. This type of entrepreneurship is typically seen through the development of nonprofit companies with the sole purpose of social good. Social entrepreneurship involves any type of social goal to create a change, whether it is environmental, aiding underserved populations, or promoting racial justice.
If you have that entrepreneurial spirit and need financial guidance, please reach out to a financial professional for advice.
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