What Is Entrepreneurship? A Definition For Aspiring Business Owners
If you’re considering starting your own business, you might be wondering what the term entrepreneurship means, and what it takes to be an entrepreneur. Basically, entrepreneurship is simply the act of starting a new business or company from scratch, whether you are working on your own or with others as part of a team. It also involves running that business by making important decisions about its overall direction and day-to-day operations. To help you learn more about this challenging but rewarding endeavor, here’s an in-depth look at what entrepreneurs do and how they do it!
Five different types of entrepreneurs
There are a handful of different kinds of entrepreneurs out there, and each has a unique advantage when it comes to success. Figuring out which kind you might be can help you identify where your strengths lie as well as areas that may need improvement. If you’re unsure about where you fall on the spectrum, consider asking friends or family members who have worked with you in business before. Of course, make sure they’re honest—if they don’t tell you how they really feel, nobody will! (See more on finding helpful advisors below.) Here are five common types of entrepreneurs: 1. The social entrepreneur focuses on solving a social problem through innovation. These individuals tend to have strong communication skills and take pride in helping others succeed. They also tend to stick with one project for years at a time, rather than shifting from one venture to another quickly like other entrepreneurs do. The work is often very demanding, but rewarding too if their project succeeds! Social entrepreneurs want their company’s impact felt for years after its creation is complete.
2. The small-business owner tends to focus on making money above all else. These entrepreneurs are often very focused on their business and may be more willing to take risks than other types of entrepreneurs. They are often hands-on and want to be able to make decisions quickly, which can sometimes lead them into trouble if they’re not careful! 3. The serial entrepreneur is someone who loves starting new ventures but isn’t as concerned with creating a lasting legacy or doing good in society. These individuals may be less interested in planning out every step of their business idea before launching it and more interested in being spontaneous with their endeavors, though that doesn’t mean they don’t have long-term goals for themselves or their company! 4. The corporate entrepreneur works within an established organization and looks for ways to grow it by innovating products or services. This type of entrepreneur typically has some experience working within a corporation, so he or she knows how things work within a large organization—but they also know what could be improved upon! 5. The independent consultant is probably one of the most common kinds of entrepreneurs out there because he or she can work from anywhere at any time. This type of individual might travel frequently and work with many different clients throughout his or her career—or he or she might stay put in one place and build up an impressive client list over time. Independent consultants typically enjoy having freedom over their schedule but may find that working for multiple clients at once requires more scheduling flexibility than some people are comfortable with.
Realities of being an entrepreneur
There are some perks to being your own boss. Namely, you set your own schedule, choose which clients to work with and generally have more flexibility than a 9-to-5 job provides. But if working at home sounds like a dream come true, don’t be fooled: There are plenty of downsides to running your own business. You’ll likely work longer hours than you’d ever imagine and only see your family on weekends (if then). More often than not, being an entrepreneur means going without health insurance or taking out a second mortgage for that first real office space. These days, it’s easier than ever to start a business from scratch—but no less challenging when you’re on your own with everything on the line.
Thinking like an entrepreneur
In order to start a business and have it be successful, you have to first think like an entrepreneur. What do we mean by that? Basically, that requires thinking about how you can make money doing something you enjoy, whether or not that means actually running your own business. We’re all told as kids that if we want to get rich, we should go out and get a job—but there are plenty of people who have made tons of money without ever having held down a traditional 9-to-5 job. So what does it take to become one of those people? It takes creativity, drive, passion for what you’re doing—and sometimes even just plain luck.
Mistakes entrepreneurs make
Everyone makes mistakes, but entrepreneurs make a few specific mistakes that set them up for failure. One mistake is to underestimate how much time it will take to complete tasks in their business and plan on hiring more help than they can afford. Not only does underestimating cost you money, but it means you’ll have more work than you can handle at times. Thinking of your small business as a company that runs on a 9-to-5 schedule is critical to success. The other mistake entrepreneurs make is assuming they know everything they need to be successful; they run out of cash before they realize they don’t know what they need most: customers, sales and revenue.
Career choice or lifestyle choice
It’s important to think about whether you want to start a business because you want to keep your current job and make extra money on top of it, or if you really want to leave your day job and do something different. If you have an aversion to risk, entrepreneurship may not be for you. In fact, if entrepreneurship is your only fallback option—if you can’t see yourself doing anything else—you might want to reconsider. Starting a business means taking risks and being willing (and able) to fail; otherwise, it just won’t work out. Additionally, if there are already other people in your life who rely on your income (such as a family), starting a new business could put those relationships at risk.