7 Types of Small Business Entrepreneurship You Should Know
Small business entrepreneurship is a popular and rewarding career path for many people. But what exactly is small business entrepreneurship and what are the different types of it? In this article, we will explore the definition, benefits, challenges, and examples of small business entrepreneurship, as well as the 7 types of small business entrepreneurs you should know.
What is Small Business Entrepreneurship?
Small business entrepreneurship is the process of creating, launching, and running a small business that offers a product or service to a specific market. A small business is usually defined as one that has fewer than 500 employees and less than $7.5 million in annual revenue. A small business entrepreneur is someone who owns and operates a small business, or who has the intention and ability to do so.
Small business entrepreneurship can be motivated by various factors, such as:
– Passion: Some entrepreneurs start a small business because they are passionate about a certain topic, hobby, or skill, and want to share it with others.
– Opportunity: Some entrepreneurs start a small business because they see a gap or a need in the market that they can fill with their product or service.
– Necessity: Some entrepreneurs start a small business because they have no other choice, either due to unemployment, underemployment, discrimination, or other challenges.
– Freedom: Some entrepreneurs start a small business because they value the flexibility, autonomy, and independence that comes with being their own boss.
– Impact: Some entrepreneurs start a small business because they want to make a positive difference in the world, either socially, environmentally, or economically.
Benefits and Challenges of Small Business Entrepreneurship
Small business entrepreneurship has many benefits, such as:
– Personal satisfaction: Small business entrepreneurs can enjoy the sense of accomplishment and fulfillment that comes from creating something valuable and meaningful.
– Financial rewards: Small business entrepreneurs can potentially earn more income than working for someone else, especially if their business grows and becomes successful.
– Creative expression: Small business entrepreneurs can unleash their creativity and innovation in developing their product or service, as well as their brand identity and marketing strategy.
– Learning opportunities: Small business entrepreneurs can learn new skills and knowledge in various aspects of running a business, such as accounting, management, sales, customer service, etc.
– Social contribution: Small business entrepreneurs can contribute to their community and society by creating jobs, solving problems, supporting causes, and inspiring others.
However, small business entrepreneurship also has many challenges, such as:
– Risk and uncertainty: Small business entrepreneurs face many risks and uncertainties in starting and running a business, such as market demand, competition, regulation, funding, etc. There is no guarantee that their business will succeed or survive.
– Stress and pressure: Small business entrepreneurs have to deal with many stressors and pressures in running a business, such as deadlines, cash flow, customer complaints, employee issues, etc. They also have to balance their work and personal life.
– Responsibility and accountability: Small business entrepreneurs have to take full responsibility and accountability for their business decisions and actions. They have to deal with the consequences of their mistakes and failures.
– Hard work and dedication: Small business entrepreneurs have to work hard and dedicate a lot of time and energy to their business. They have to wear many hats and juggle many tasks at once.
7 Types of Small Business Entrepreneurs
There are many types of small business entrepreneurs, depending on their motivation, personality, goals, skills, industry, etc. However, here are 7 common types of small business entrepreneurs that you should know:
1. Lifestyle Entrepreneur: A lifestyle entrepreneur is someone who starts a small business that aligns with their personal interests, values,
and lifestyle. They are not driven by money or fame, but by happiness and fulfillment. They choose a niche that they are passionate about
and enjoy doing. For example, a lifestyle entrepreneur could be a travel blogger, a yoga instructor, or a craft maker.
2. Serial Entrepreneur: A serial entrepreneur is someone who starts multiple small businesses over time. They are driven by the thrill
and challenge of creating something new and different. They are not afraid of failure or risk. They are always looking for new opportunities
and ideas. For example, a serial entrepreneur could be someone who launches a clothing line, then a restaurant chain,
then an online platform.
3. Social Entrepreneur: A social entrepreneur is someone who starts a small business that aims to solve a social or environmental problem
or create a positive impact in the world. They are driven by their vision and mission. They measure their success not only by profit,
but also by social value. For example,
a social entrepreneur could be someone who creates a solar-powered device that provides clean water to rural communities,
or someone who empowers women artisans through fair trade.
4. Franchise Entrepreneur: A franchise entrepreneur is someone who buys an existing brand name and business model from a franchisor
and operates it as their own small business. They are driven by the security and stability of a proven system. They benefit from the
support and training of the franchisor, as well as the recognition and loyalty of the customers. For example, a franchise entrepreneur
could be someone who owns and runs a McDonald’s, a Subway, or a Starbucks outlet.
5. Freelance Entrepreneur: A freelance entrepreneur is someone who sells their skills and services to clients on a project or contract basis.
They are driven by the freedom and flexibility of working for themselves. They can choose their own clients, projects, rates, hours, and location.
They can also diversify their income streams by offering different types of services. For example, a freelance entrepreneur could be
a graphic designer, a writer, or a consultant.
6. Home-Based Entrepreneur: A home-based entrepreneur is someone who runs their small business from their home. They are driven by the convenience and comfort of working from their own space. They can save money on rent, utilities, transportation, and other expenses. They can also enjoy more time with their family and friends. For example, a home-based entrepreneur could be an online seller, a tutor, or a caterer.
7. Innovation Entrepreneur: An innovation entrepreneur is someone who starts a small business that offers a new or improved product or service that meets an unmet or underserved need in the market. They are driven by their curiosity and creativity. They are constantly researching, experimenting, and testing their ideas. They are not afraid of change or disruption. For example, an innovation entrepreneur could be someone who invents a wearable device that monitors health conditions,
or someone who develops a software that automates tasks.
Which Type of Small Business Entrepreneur Are You?
As you can see, there are many types of small business entrepreneurs, each with their own strengths, weaknesses, opportunities, and challenges.
There is no one right or wrong type of small business entrepreneur. The best type of small business entrepreneur for you depends on your
personal preferences, goals, skills, resources, and market conditions.
To find out which type of small business entrepreneur you are or want to be,
you can ask yourself some questions, such as:
– What is your motivation for starting a small business?
– What are your personal and professional goals?
– What are your skills and talents?
– What are your passions and interests?
– What are the problems or needs that you want to solve or address?
– What are the opportunities or trends that you want to capitalize on or follow?
– What are the risks or challenges that you are willing or able to take or overcome?
By answering these questions, you can get a clearer idea of what type of small business entrepreneurship suits you best.
You can also learn from other successful small business entrepreneurs who share your type and see how they started and grew their businesses.
Types of Small Business Entrepreneurship
Small business entrepreneurship is one of the most common forms of entrepreneurship. It involves creating and running a business with fewer than 500 employees, usually in a local market. Small business entrepreneurs typically aim to make a profit that supports their family and lifestyle, rather than seeking large-scale growth or innovation. Some examples of small business entrepreneurship are:
– Single-location restaurants
– Grocery shops
– Retail shops
– Hairdressers
– Consultants
– Travel agents
– Electricians
– Carpenters
Global Demand for Small Business Entrepreneurship
The global demand for small business entrepreneurship varies depending on the industry, location, and economic conditions. However, some general trends can be observed:
– According to the World Bank, small and medium enterprises (SMEs) account for about 90% of businesses and more than 50% of employment worldwide. SMEs are also a major source of innovation and economic growth in developing countries.
– The COVID-19 pandemic has had a significant impact on small businesses, especially in sectors such as tourism, hospitality, and retail. Many small businesses have faced reduced revenues, increased costs, and disrupted supply chains. Some have had to close down permanently or temporarily, while others have adapted to new modes of operation, such as online sales, delivery services, or digital platforms.
– The demand for small business entrepreneurship may increase in the post-pandemic recovery phase, as consumers seek more local and personalized products and services, and as governments provide more support and incentives for SMEs. Some emerging opportunities for small business entrepreneurs include e-commerce, health and wellness, education and training, green and social enterprises, and niche markets.
References:
https://www.federalreserve.gov/pubs/feds/1998/199815/199815pap.pdf
https://fas.org/sgp/crs/misc/R40860.pdf
http://www.sba.gov/advo/research/sb_econ2001.pdf
(https://www.worldbank.org/en/topic/smefinance)
(https://www.oecd.org/industry/smes/sme-policy-index.htm)
(https://www.entrepreneur.com/article/364212)
https://www.sba.gov/business-guide/10-steps-start-your-business/
https://www.forbes.com/sites/alejandrocremades/2018/12/17/the-9-types-of-entrepreneurs/?sh=4c0f9b2b1f2e
https://www.investopedia.com/terms/s/small-business.asp
Sell on Rexcer.com
