Is being an entrepreneur something you’ve ever thought about? As our modern age is opening doors of opportunities for everyone to run and start a business. Anyone interested in learning about the attitude of entrepreneurship or who has ever fantasized about establishing their own firm should stay here to understand it completely.
We have all heard of names like Elon Musk, Jeff Bezos, Mark Zuckerberg, Bill Gates, along with some prominent female entrepreneurs like Sara Blakely,Lisa Price and Oprah Winfrey. These are considered as the giants of the business world. They all belong to different industries but are the real adopters of Entrepreneurship.
But what actually is entrepreneurship?
It’s commonly referred to as launching and managing a business as a person or group. This beginner guide on entrepreneurship might be useful if you want to start your own business. I will go over every factor of this term here to assist you decide if it is the proper career route for you.
What is Entrepreneurship?
Entrepreneurship is all about developing, administrating, and running a business with the intent of making a profit. The modern explanation of entrepreneurship has added a few extra things to it.
It’s now also about identifying a key issue that people of a society are facing and turning it into a business opportunity. An entrepreneur creates a product or service that solves society’s issues and makes money through it. That is why Embroker reports highlighted that around 24 million Americans want to become an entrepreneur.
As an entrepreneur, you must possess a certain set of abilities that will aid in identifying issues. You continue to improve society as you pursue business by expanding job availability and building up the nation’s wealth.
So, being an entrepreneur involves more than just managing a business and earning a few dollars. It’s also about being a thought leader and cornerstone of a society’s capital income.
Historical Evolution of Entrepreneurship:
The fact that entrepreneurship is not a new idea may surprise you. Its origins can be traced back to approximately 17,000 BC when humans began exchanging products.
The concept evolved throughout history and has taken many shapes. I’ve mentioned a summarized timeline of the historical evolution of entrepreneurship below:
- The Beginning: As I mentioned, the beginning of running a business started with people trading goods like obsidian around 20,000 years ago.
- Discovery of Agriculture: After going through the hunter-gatherer period, people discovered agriculture which opened more opportunities for trade and business. People would trade different crops with each other for profits.
- Long-Distance Trade (2000 BC Onwards): When trade routes were made to connect different parts of the world together, business became a major part of the economy. People would offer goods to those in need using different routes like the Silk Road.
- Invention of Money: The invention of money gave shape to the real concept of entrepreneurship. People used to utilize the currency to start businesses and make profits from it.
- The Medieval Period: The Medieval period was both a hard and prosperous time for entrepreneurs. In this period, people would usually sell their skills like craftsmanship to those in need and make a profit from it.
- Post WWII: Post WWII was a desperate time and people were in severe need of goods and services. Many entrepreneur companies like Roy Kroc’s restaurants and IBM offered products and services to people.
- New World: In the late 20th century, many entrepreneurs changed the economy. Steve Jobs started Apple, Bezos started Amazon, and these companies are now ruling the economic world.
Modern Perspectives on Entrepreneurship:
The view of entrepreneurship in the current era is even more varied. Different technology trends are helping many businesses make a lot of profit.
The Internet and the availability of social media for billions of people have provided opportunities for starting businesses with the possibility of huge profits.
Another technology that is dictating the upcoming years of entrepreneurship is Artificial Intelligence. People have developed online tools and services which are being sold to people in need.
In simple words, people can now easily start startups and be entrepreneurs. There are a lot of online resources available for that. And with social media, reaching out to more customers isn’t an issue as well.
Types of Entrepreneurship:
Now, we’ll look over the main types of entrepreneurship, which are basically the starting point for a person’s entrepreneurial journey.
1. Small Business Entrepreneurship:
Small business entrepreneurship is about starting a small business. It is usually started without an expansion plan. It is usually started and managed by one person. Its employees are also very limited and sometimes family members are hired as employees.
There are different examples of this type including running a nail salon, a tea stall, or selling handmade crafts. This type requires very little investment and profits are directly received by the owner.
2. Scalable Startup Entrepreneurship:
Scalable startup entrepreneurship is about starting a business that is both scalable and repeatable. It is usually started with the intention of making rapid expansion and huge profits. Entrepreneurs who aim to start such businesses need to focus on the availability of both financial and human workforce resources.
The more resources he has, the more sales he will be able to make. As a result, this model requires a continuous availability of potential investors who are ready to support the business financially. Since it is based on the idea of large expansion, long-term planning is also required for it. There are several businesses that follow this model including Google and Amazon.
3. Large Company Entrepreneurship:
Large company entrepreneurship also focuses on rapid expansion but it does it by offering new products and subsidiaries within the same brand. Companies like Disney, Toyota, and Meta follow this business model. These businesses have finite cycles so they need to keep innovating themselves by launching branches and products to keep on providing their customers.
For example, Facebook bought both WhatsApp and Instagram to expand its product line and offer more services to its customers.
4. Social Entrepreneurship:
Social entrepreneurship focuses on making profits while contributing to society as well. These businesses try to contribute to the world using their services directly or from the profit they make. These can be non-profit, for-profit, or hybrid companies working for the betterment of society and the people related to it.
There are different examples of these businesses including financial institutions, microfinance services, etc. TOMS was the first company to introduce this entrepreneurship type to the world. It employed the one-for-one approach for selling its products. It means a pair of shoes will be donated for every pair sold.
5. Innovative Entrepreneurship:
The main goal of innovative entrepreneurship is to develop fresh, creative concepts that disrupt established market trends. This kind of company is constantly searching for emerging trends that have the potential to alter the market.
It also looks for the ways a business can change an already-going trend. An innovative entrepreneur finds out how he can deliver a service better than everyone else is offering.
Such types of companies focus on markets very closely. It is important for them to stay aware of market trends so that they can introduce new inventions and services. One example of this type is the introduction of Tesla cars which revolutionized the electric car industry.
6. Hustler Entrepreneurship:
Hustler entrepreneurship is directly related to the person willing to start a business on their own despite the challenges he is facing. With a hustler’s spirit, the businessman focuses on making a dent in the business world by offering its products or services. It is usually those people who believe they have something in their product that could change the world entirely.
They believe in their services and try to deliver products without compromising on their quality. The startup of Apple from a garage is an example of Hustler’s entrepreneurship. Steve Jobs believed in delivering quality products even from the start and turned the garage startup into a multi-billion-dollar company within years.
7. Imitative Entrepreneurship:
Imitative entrepreneurship is adopted by those who do not intend to develop an original idea or product. This type usually focuses on copying the ideas and methods of successful entrepreneurs to make a profit. They walk in their footsteps and try to build a recognition similar to their brands. These individuals can thus use tried-and-true tactics and steer clear of typical blunders to create a profitable company.
Characteristics of Successful Entrepreneurs:
A person who has a prosperous business trip either possesses certain traits from birth or develops them through the highs and lows of the entrepreneurial journey; in either case, there are always motivating elements.
1. Vision and Creativity:
Two essential traits of a successful entrepreneur are vision and inventiveness. In reality, without vision and inventiveness, entrepreneurship cannot be sustained.
Successful businessmen have the vision to spot uncommon trends in the market and jump over any available opportunities. These opportunities are then molded with creativity to get end results. These people think outside the box and are good at seeing situations from multiple angles.
2. Risk-Taking and Resilience:
Entrepreneurs are willing to take risks whenever required. Without the guts to take risks, one cannot explore unknown territories and make their mark in the market. Developing and operating a business always involves some level of risk, regardless of how well your product works or how much money you have.
When managing his firm, a great entrepreneur is always eager to take chances and go above and beyond. People always face setbacks while running companies but it’s their resilience that makes them successful in the market.
3. Leadership and Team Management:
The leadership characteristic is essential when running companies having multiple employees. Without great leadership, it is almost impossible to get the most out of your workforce while offering services to society. Great entrepreneurs are great leaders as well. Entrepreneur lead their organizations and teams with a balance to get their required results.
The same goes for team management. Usually, a workforce is divided into multiple teams and each owner has to lead them together. They have to show peak man-management so that everyone does their jobs perfectly for a mutual benefit.
4. Adaptability to Change:
Another quality successful business owners have is the adaptability to change. The change can be a shift in the market trend, a change in the employees, or switching stakeholders and investors. These people are always ready to adapt according to the situation.
Adaptability allows them to run the company in a smooth and streamlined way no matter what change it has to go through.
5. Strong Work Ethic:
An entrepreneur has strong work ethics. He believes in working hard no matter what circumstances he faces. It is an absolute necessity for running a great company. Entrepreneurs are always prepared to work long hours and hard to accomplish goals. They are able to work even longer hours than the typical 9 to 5 workday because of their commitment.
6. Financial Literacy and Resource Management:
Financial literacy and resource management are essential while running a business. It can act as a cornerstone of the whole process when you’re running a startup. Startups usually have limited financial and workforce resources.
Entrepreneurs have to go with a proper balance and spend resources only at places where required. So, successful entrepreneurs are usually well aware of their financial resources. They learn and utilize new techniques and models to streamline their resources in order to make the most use of them.
7. Emotional Intelligence and Self-Awareness:
Other traits that entrepreneurs acquire over their careers include self-awareness and emotional intelligence. Emotional intelligence facilitates improved communication and self-presentation since managing a business involves dealing with people.
Entrepreneurs strive to have a positive attitude and are aware of their emotional state. They can use their intuition to make informed judgments since they are self-aware.
8. Decision-Making Under Uncertainty:
Uncertain situations are guaranteed while running a business. Successful entrepreneurs have trained their minds to make calculated decisions under uncertain situations. This have the ability to analyze situations quickly and predict their outcomes even before they happen.
Entrepreneurs use their decision-making skills to get an outcome that is favorable for the company. Sometimes, they even make hard decisions that are necessary for the long-term sustainability of businesses.
Process of Becoming an Entrepreneur:
The process of becoming an entrepreneur is easy if you follow a few simple yet crucial steps. Their details are given below:
1. Identify a Market Opportunity:
Everything begins with identifying a market opportunity. It revolves around finding a point that requires improvement or the launch of a new product or service in the market. Effective identification is necessary for starting a great business. To identify this opportunity, you will have to conduct a thorough research of market trends.
If there are companies making a similar product, analyze the nature of their business. Understanding these things will help you build a basic step for the launch of your to-be successful business in the market.
2. Create a Business Plan:
After identifying an opportunity and getting an idea, you need to create a proper business plan. A business plan, or strategy, is a complete outline of your business operations that dictate how you’re going to run the main operations. It involves making plans for things like manufacturing, employee recruitment, attracting investors, etc.
First, make a master plan that covers the entire organizational functionality. Then, start creating mini-plans for each department of the startup. Creating a business plan is important no matter what type of entrepreneurship you are pursuing. It will help you take full control and get the most out of business operations.
3. Secure Funding:
Now, it’s time to secure funding for the business. If your business is small, you might only need to fund it by yourself. If it is a big business idea, you might need to find investors who are willing to fund the operations. It usually requires pitching your idea to the right people to get investments. It also includes deciding equity and share percentages with investors.
4. Register and Build a Brand:
Registering means getting your business officially in the books of the authorities. In other words, it includes legally structuring the whole model. It can be an LLC, a partnership, or a sole proprietorship. You will also be required to register and copyright the brand name along with gaining a tax identification number.
After registration, start focusing on brand-building which is mainly related to promoting originality and core values among employees, stakeholders, and employees.
5. Set Up Operations:
Once registration is completed, set up your operations. It involves setting up a manufacturing line for products. Depending on the nature of your business, the operations setup can vary.
For example, if you sell garments, you will require setting up a manufacturing unit at someplace. It can range from owning a single machine to lining up multiple machines in a building.
6. Launch the Business:
Now, launch the business and start selling your products and services. Keep the business running according to market standards and make products of high quality. Also, keep on reaching out to new people in order to increase the number of your customers.
It is important to be bold at the start of launching since it has a positive impact on the public. Announcing the launch date to the potential customer market can also be of use.
7. Manage, Scale, and Grow:
As the production and selling of goods and services goes, keep on managing it properly. Set up a complete working plan in order to keep the business running smoothly. It is also important to analyze and adjust the scale of your business.
In other words, sometimes your product will have to be manufactured in large numbers and sometimes the production will drop. So, balanced scaling is also essential in the process. Perform effective marketing to grow your business in the market using tactics like social media marketing, influencer marketing, etc.
8. Look For Mentorship and Networking:
Mentorship and networking are required for successful entrepreneurship even if your business is running fine. Without mentorship and networking, expanding a business can be difficult. Mentorship from experts helps run operations in an optimized way for better results. On the other hand, networking allows you to access other businesses and work in collaboration for mutual interest.
Main Challenges Entrepreneurs Face:
Entrepreneurship is just like a rollercoaster ride. There are ups and there are downs. So, be prepared to face some common challenges that every entrepreneur faces. Here are their details:
1. Financial Risks:
Financial risks are always knocking on the door when you run a business. People have to face and overcome financial risks and challenges. In other words, they invest financial resources in an idea that may or may not work at all.
2. Market Competition:
The internet has made the availability of resources for every other person in the world. So, a single product and service is being sold by multiple competitors. Unless a business idea is extremely unique, there’s always a risk of fierce market competition in the world of entrepreneurship.
3. Managing Work-Life Balance:
As I mentioned before, entrepreneurs work beyond usual time schedules. There is very little time left to spend with family and friends. So, these people are in a constant work-life balance crisis.
Benefits of Being an Entrepreneur:
Despite all the challenges and hardships, being an entrepreneur can help you in a big way. The following points explain it well:
1. Freedom and Flexibility:
You have full freedom and flexibility in your professional life. The famous term “Being Your Own Boss” becomes true when you’re working on your own business. There are no fixed schedules and guidelines that you need to follow. You get to bring your own ideas within the business and experiment with them. Also, the work-life becomes more flexible and you can tailor the working hours and timing according to your preferences.
2. Financial Independence:
Although financial risks are involved, being an entrepreneur also helps you become independent. As a successful business owner, you get to take most of the profit for yourself. You’re also not tied to the month-to-month salary cycle which can be very frustrating for some people. It also gives the freedom to invest and save as much money as you want in the business.
3. Personal Growth:
Running a business offers a great opportunity for personal growth. The challenges I mentioned above are great examples of it. An entrepreneur gets to learn new things every day and tackle challenges and problems. It helps in personal growth and makes a person well-equipped with both personal and professional-level skills.
Conclusion: Is Entrepreneurship Right for You?
To sum it up, entrepreneurship is all about identifying an opportunity and giving your everything to turn it into a profitable business. So, is entrepreneurship right for you? Absolutely. If you have the guts and resilience to give your creative ideas the shape of a profitable business, this field is perfect for you.
It’s full of challenges and hardships but the outcomes and consequences are super-beneficial for both you and the society. So, don’t shy away from coming up with innovative ideas and help those who are in need of your useful products and services.
