Entrepreneurship is the ability to conceive, manage and carry out projects, transforming ideas into products, services and businesses. This concept also refers to the initiative to suggest and implement changes in existing companies.
Much is said about entrepreneurship and how entrepreneurs took their ideas and turned them into successful projects. Now, what does that concept really consist of? What are your goals? What is needed to invest in it?
To answer all your questions about entrepreneurship, we have prepared this complete guide with everything you need to know about the subject and we include some advice for those who are thinking of starting a business.
Without further ado, grab your notebook and let’s get started! 📝
What is entrepreneurship?
Entrepreneurship is the ability to develop and carry out projects, transforming ideas into products, services and businesses in general.
We could also understand entrepreneurship as the initiative to suggest and implement changes in companies that already exist in the market.
In the business world, we can say that entrepreneurship is the act of creating new solutions, transforming businesses, modifying processes and any initiative that promotes the evolution of the market and generates an impact on it.
Likewise, entrepreneurship is a scenario with great potential for professional development since, when new businesses emerge focused on satisfying the specific needs of a certain public, entrepreneurs can take advantage of these new consumption habits to identify opportunities.
The “equation” for a startup, according to the North American consultant Steve Cobak, is as follows:
Entrepreneur + Capital = Products + Clients = Business
What does this mean? That undertaking requires an investment, not only financial, but mainly of time. To achieve success, it is necessary to offer a true solution: dedicate yourself to developing a differential for your business, thinking about how people are going to use what your business offers in “real life” and why they are going to choose your brand instead of your brand. the competition.
How did the concept of entrepreneurship arise?
Although today entrepreneurship is a fairly popular word, it is not as current a term as it seems. The concept began to gain notoriety in academia in mid-1945 by the Austrian-American economist.
Initially, the word was used as a starting point for the “Theory of Creative Destruction”, conceived by the economist. According to Schumpeter, entrepreneurship is a practice limited to versatile people, with production skills, financial organization and sales.
Over time, the concept was transformed into what we know today. Part of this transformation came from the academic in his book “”.
For Hisrich, entrepreneurship is the process of creating something new and valuable, devoting time and effort, assuming possible economic, psychological and social risks, with the aim of obtaining economic and personal rewards.
What is it to be an entrepreneur?
From the concept of entrepreneurship, we can define the entrepreneur as the one who leads innovative projects, promotes transformations and sees opportunities in unexplored places.
An entrepreneur is the person who implements new ideas and makes changes wherever he goes.
In practice, an entrepreneur can be:
- the inventor of a new object;
- the creator of a new product or service;
- the founder of a company or institution;
- the creator of a significant transformation;
- the owner of a website, blog or;
- and anyone who is behind something new and innovative.
Characteristics of an entrepreneur
The main characteristics of an entrepreneur are:
- Initiative: the entrepreneur knows when to act and does not waste opportunities.
- Self-confidence: he believes in his ideas and knows very well how to defend them.
- Courage: the entrepreneur is not afraid to take risks or fail; Challenges drive him.
- Optimism: negative thinking? No way! An entrepreneur is always optimistic about his projects and ideas.
- Persistence – Giving up is not an option, an entrepreneur is persistent and goes to great lengths to make sure their goals are achieved.
- Resilience: the entrepreneur has the ability to face adverse situations and even benefit from them; recovers from difficult situations, learns from adversity and continues to move towards the future.
- Leadership: acts as a guide for initiatives and teams, leading and directing each stage of the project.
- Relationship capacity: the entrepreneur knows that teamwork can be much more effective; therefore, he makes sure to maintain good professional connections.
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What are the types of entrepreneurship?
Over the years, the concept of entrepreneurship has not only been transformed, it has also been fragmented, allowing the appearance of different scenarios.
As a result, today there are as many types of entrepreneurship as there are markets explored by entrepreneurs to bring their projects to life.
With this in mind, we have made a list of the main types so that you can discover how each one works.
digital entrepreneurship
Digital entrepreneurship involves businesses and solutions that are carried out in the virtual environment. From online stores to applications and social networks, everything that is developed on the internet can be understood as part of this category.
In Argentina, for example, there is enormous potential for digital entrepreneurs, especially in: according to the eMarketer agency, during 2020, the country’s retail e-commerce market had the fastest growth in the world, posting 79% increase compared to the previous year.
business entrepreneurship
Business entrepreneurship involves the creation and development of traditional business enterprises.
It contemplates the creation of products and services in general, with the aim of obtaining an economic benefit. Entrepreneurs working in this area must carefully observe the new needs of the market, since that is where the opportunities arise.
corporate entrepreneurship
Corporate entrepreneurship, or intrapreneurship, is one that takes place within an organization and focuses on developing improvements. Whether with new solutions or with the restructuring of processes, the objective of the corporate entrepreneur is to promote transformations.
This model is very popular in more modern companies, such as startups, where there is a strong culture of sharing ideas. Corporate entrepreneurship is usually very positive for companies seeking to update their processes and stand out in the market.
social entrepreneurship
Social entrepreneurship was designed to implement community-oriented improvements. For this reason, it differs significantly from the other models, since the institutions focus on carrying out projects that help some group or cause.
Within social entrepreneurship we can mention Non-Governmental Organizations (NGOs) that work to combat hunger, for example. Social entrepreneurs are quite different from others as they focus on upholding their ideals and ensuring that their institution has a positive impact on society.
green entrepreneurship
Green entrepreneurship is related to social entrepreneurship, the difference is in the focus of these organizations, which consists of preserving the environment. 🌳
In this model, institutions are created to address environmental issues of public interest. Normally, they do not seek economic benefits, but instead monitor and intervene directly in agendas that may threaten the environment in some way.
female entrepreneurship
Female entrepreneurship encourages and promotes the presence of women in all markets. The idea is to ensure that the female presence in positions of power becomes something common.
The role of a female entrepreneur also involves finding opportunities to promote diversity in the business environment. Likewise, she seeks to support projects created by other women and strengthen a network of connections between professional women.
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individual entrepreneurship
Individual entrepreneurship is about small businesses managed by a single person.
Professionals who develop and offer services on their own — for example — can be considered sole proprietors. What differentiates this model from others is the absence of partners and investors.
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cooperative entrepreneurship
Corporate entrepreneurship, for its part, promotes the union of several entrepreneurs with a common goal. In these cases, professionals join forces to bring a specific project to life.
It works like a support network, where each entrepreneur offers what they have. Starting from the concept of collaborative economy, all decisions are taken together in a democratic way, as well as the distribution of expenses and benefits obtained.
6 tips to start a business
When it comes to entrepreneurship, nothing is set in stone. This is because we are talking about a scenario that promotes changes and transformations.
However, it is possible to establish some practices that can help you start a successful business and, below, we share them with you:
1. Define your activity
First of all, you have to analyze all the possibilities and understand which one makes the most sense with your idea.
For example, you can ask yourself these questions:
- Are you going to transform your project into a physical product?
- Does your idea correspond more to a service such as the sale of online courses or consultancies?
- Is it going to develop in the online or offline market?
- Does it have a social purpose?
- What will be your market niche, that is, that group of consumers that has not yet been served by the competition and that represents a business opportunity for you?
Keep in mind that knowing where you want to act is the first step to start shaping your project.
2. Create a spread
If you are thinking of developing a product or service that, in some way, already exists in the market, it is essential that you differentiate yourself.
You have to do a good job and identify opportunities to offer something better, superior, innovative or, at least, highly competitive.
3. Validate your idea
After defining your project and just before you start working on it, it is important to talk to people who can identify with the solution you are developing and listen to what they have to say.
That of other people can be very enlightening for your creative process and can generate important contributions for the project. Unless you’re…
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