By definition, an entrepreneur is a person who takes the initiative to start and operate a business venture, and assumes the risk involved. Entrepreneurship involves innovation and diving in to create the product, marketing, and processes. Entrepreneurs typically share common characteristics and habits, and developing a business offers many personal rewards before a small business or a corporate situation even launches the product or service and turns a profit. Success isn’t always defined by profit, but typically that’s the goal.
Entrepreneurs may develop their own product or service, or they may start and run a business enterprise they are either passionate about or believe they can bring to life successfully. In addition to the development and investments into time and cost of goods, they also have the energy, heart, and skillset to assume responsibility for managing the business as well as the uncertainties that come along with it. The entrepreneur typically assumes all of the risk, though this isn’t always the case.
Entrepreneurship refers to an individual or partners who create a new business, and it’s typically a new product and service. These new products and services help grow our economy. As the business grows and sustains itself, entrepreneurship creates jobs for others, too.
New business opportunities and social entrepreneurship can even change the face of society. Businesses benefiting society are especially popular with young entrepreneurs hoping to make a positive mark on the world and older entrepreneurs wishing to give back.
The world of entrepreneurship comes with options. Sometimes they identify gaps in the market for an existing company. In those situations, they may not work alone or assume all the risk.
Frequently asked questions from prospective large & small business owners!
Am I an entrepreneur?
CAN I be?
What’s it take?
Are entrepreneurs born or made?
We are all have interests and particular skillsets that may come easy to us, while others are more challenging. An entrepreneur is not born and doesn’t fit a certain mold, though certain characteristics are more common.
For example, some assume entrepreneurs are extroverts. Not so. Someone can be highly introverted and still be very capable of building new relationships and customer trust easily. They may have phenomenal ideas, business skills, and loads of energy. However, when they recharge, they do so on their own, in peace and quiet. Other folks who are not as comfortable in a sales role may do the best job in the role of sharing product expertise or providing someone else with the facts needed to explain a concept. They can also bring on a partner or associate who can assist and bring their own strengths.
Entrepreneurs are not born; they are made with the right mindset and the right skillset. They need to know how to set priorities, stay disciplined in their work habits, and execute their plans.
“As an entrepreneur, you can always find a solution if you try hard enough.” —Lori Greiner
4 Types of Entrepreneurship
1.) Small Business Entrepreneurship
Small business entrepreneurship is just that – a small business. It is often an individual following their passion and/or a particular skill. Though they can certainly grow significantly, these businesses are most often a local market or retail shop. a family restaurant, or a service.
The entrepreneur assumes the risk, and startup costs may vary but are often significant. The entrepreneur needs a place to run the business and sell from, plus the goods or whatever is required to deliver the service. They may rely on personal savings and obtaining loans to get started, and reputation is very important.
“If you spot an opportunity and are really excited by it, throw yourself into it with everything you’ve got.” —Richard Branson
2.) Scalable Start-up Entrepreneurship
A scalable start-up begins with a large dream of becoming a large business. This type of entrepreneurship includes an idea intended to hit the market, develop a customer base quickly, expand, and turn a profit early on. These businesses are often related to new technology. The entrepreneur is an individual who identifies a solution to an urgent wide scale need where the business model includes being first to market and able to expand quickly. Currently, most often there is little start-up cost because the technology is key and can be developed and accessed simply – possibly through an app or download. The business doesn’t rely on face to face delivery and making a product for each person, so scaling is quick and efficient. Marketing is critical to introduce the product and create reach. Customer loyalty and retention increases the ability to profit and grow. Often line extensions are preplanned as part of the initial business plan.
“Don’t put a ceiling on yourself.” —Oprah Winfrey
3.) Social Entrepreneurship
Social entrepreneurs plan to make a positive impact on society or our environment. Their goal is to create social change, support or alleviate a social or environmental cause. The goal of social entrepreneurship is not to create a non-profit organization. It is not short-lived and centered around a fundraiser or short-term need. Social entrepreneurship businesses are for profit businesses built with the intention of making a long-term impact.
Some of the many examples include community development, sustainability, and renewable energy.
“One of the huge mistakes people make is that they try to force an interest on themselves. You don’t choose your passions; your passions choose you. —Jeff Bezos
4.) Large Company Entrepreneurship
Some entrepreneurs have opportunities to build out their ideas within established, already successful large companies. They are technically employees of the firm but use their entrepreneurial spirit and drive within this existing framework and bring a product to life or to reinvent a brand to make it more relevant and profitable. The entrepreneur may also enter a company with a new skillset that can incorporate new ideas and initiatives through new technology. They may use their skills to overcome barriers the company faces through updated functionality, expanding reach, and improving retention.
Large company entrepreneurship cultivated the term intrapreneurship to describe this type of entrepreneurship. Employees are encouraged to think like entrepreneurs, cultivating new ideas for the brand and/or the marketplace. They foster innovation and challenge unprofitable, outdated ways of thinking. The entrepreneur runs the project while the company absorbs the risk.
“Don’t start a business. Find a problem. Solve a problem. The business comes second.” —Robert Herjavec
7 Habits of successful entrepreneurs:
- Strong leadership skills
- Strong sense of self awareness
- Getting out of your comfort zone
- Setting goals
- Taking responsibility
- Embracing change
- Having a growth mindset
How to become a successful entrepreneur
Here is a basic guideline. Common sense is more critical than the list and the order of steps can change or be worked at the same time. All of this needs to happen though.
- Educate yourself. Classic education, trade, whatever is most appropriate to build your product, economic knowledge, and business skill sets.
- Do your research. Know your product potential, your target market, and competition,
- Work with a mentor.
- Build Your Network.
- Create your early business plan.
- Determine your funding needs short term and longer term.
- Do more research. Choose your location. Create a go-to-market plan.
- Create your business and handle legalities. Determine a structure. A name. Register. Obtain your federal and state tax IDs.
- Build Your Business.
*see the link below for incredibly simple guidelines to get you started. Save your money wherever you can. Use what’s free.
“The best way to predict the future is to create it.” —Peter Drucker
Common misconceptions regarding entrepreneurship & characteristics
Your great ideas and incredible energy do not guarantee your entrepreneurial success. Founders face many challenges and continual hurdles. It’s the nature of innovative business but don’t let that get you down. It’s the nature of all business and the nature of life – you get around challenges every single day. You do it so well that you often don’t even notice. This is the same.
Know yourself. Know your skills. Be mindful and apply metacognitive insights. You already got this.
~ Entrepreneurship is like jumping off a cliff without knowing how deep the water is. Entrepreneurs take unreasonable risks.
Entrepreneurs start with risk, yes. They also do tend to own all risk associated with their businesses unless they are working within a large corporate entrepreneurship environment where they work on behalf of the corporation.
Though risk taking is part of entrepreneurship and you need to be comfortable with that, it is calculated risk, It is thoughtful risk.
Unforeseen things do happen. They happen in all of life – corporations fire you unexpectedly, right? As much as entrepreneurs assume risk, they also are great planners and the finance whiz when it comes to knowing what it takes to turn a profit. They are detail oriented, and their business plan is a living, working document. Your business plan keeps you focused on priorities.
~ Entrepreneurs cannot succeed without business and industry experience.
For corporate entrepreneurship, yes, this is often a requirement of them hiring you. For all other areas of entrepreneurship, it starts with a dream, guts, and energy & desire to see it through. Perseverance is more key than experience. You can fill those gaps and build your experience. Most do.
~ The most successful entrepreneurs created a new invention.
Most entrepreneurs do have a vision, but not necessarily an actual invention. They see a problem and a way to solve it. It’s not the same thing.
Your desire might be a coffee shop or homemade ice cream. You didn’t invent either one, but if your town needs an affordable but great quality gathering spot, or if your town needs a certain service you can offer, your plan might fit a perfect and profitable need. You can expand or be satisfied with your original focus.
Your success will depend on knowing your marketplace, your consumer, and the numbers.
~ Most entrepreneurs fail because they need an impossible amount of funding.
Knowing the money mechanics and having an understanding of economics is important. You need to do your research and understand the life cycle of your business and this product or service. You need to know how you are funding this business. You need to know how you will pay the business bills you’re your personal bills as you develop your business.
It’s a lot to digest and yes, it may seem impossibly high. But it isn’t impossible. How much funding you need is determined from those numbers and what it will cost to bring you product to market.
You have many options and resources. You can start as a side business and develop. You can save then start 100% in. You can seek capital through investors and various resources.
~ Entrepreneurs are loners who focus on their own needs and don’t work well with others.
No!! 🙂
Building relationships and networking are critical to your success. Listening to your mentors and processing their words and acting as a mentor to others are also critical to your success. Being able to break and enjoy time with family and friends is critical to your success.
Your ability to positively interact with others short-term and long-term is critical to your success in business – and in life.
Consider these words from Steve Jobs.
“The people who are crazy enough to think they can change the world are the ones who do.” – Steve Jobs
“I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.” Steve Jobs
Nothing here is rocket science. Understanding your interests and your skills will seem like rocket science to someone else. Your business has the ability to blossom if you build your business plan and use it. If you need to sleep in every day and watch videos the rest of the day, and work isn’t for you? Then entrepreneurship isn’t for you either. It takes much more than a great idea. It takes an unmatched work ethic and laser focus. If you have developed the habits we listed and follow the very simple processes we share below to keep on track, you will get there. Believe in yourself.
“The way to get started is to quit talking and begin doing.” —Walt Disney
You got this.
What Is Thoughtful Risk Taking? (envisionaryme.com)
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