Discover the 8 types of entrepreneurship and their impacts!

Increasingly more kinds of entrepreneurs are going to appear. Most of the employees end up with a question: “What kind of entrepreneur am I?” This is very important after all since it has everything to do with which direction the company will take. Finally, it shall be the aspirations and characteristics of the individual that shall give meaning to the purpose of the business.

We have thus written this article to answer these questions and to show you different types of entrepreneurship. Keep reading on further to learn more about the main types of entrepreneurship and find out which is right for you.

Happy reading!

What are the 8 types of entrepreneurship that exist?

See below the main types of entrepreneurship that we have listed for you.

1. Individual entrepreneurship

The other type of entrepreneurship which is on the rise in the country is individual entrepreneurship. The latter can be legally established through MEI (Individual Microentrepreneur), Eireli (Individual Limited Liability Company) and EI (Individual Entrepreneur).

These are the most practical ways and are the easiest means of becoming an entrepreneur when the end goal is to have a small business. For one, there could be important limitations on this type of business, such as the number of employees and revenues. This particular kind of business is used mostly by freelancers and independent professionals.

2. Informal entrepreneurship

This type of entrepreneurship is practiced by most who were unable to legally start their own business. The idea is to meet short-term needs and, in most cases, only provides the basics for survival. One example is a street stall that ends up operating without a CNPJ, for example.

A disadvantage of informal entrepreneurship is that it suffers from several restrictions, such as access to credit services and other benefits.

3. Franchise Entrepreneurship

The security for investment in this kind of entrepreneurship is a great advantage, because you will be undertaking a business model that has already been tried and, often, proven. Besides, you will be supported by the company, knowing all the ways to make everything easier. For this reason, theoretically, this is one of the easiest types of entrepreneurship to execute, as it already has well-defined processes.

Nevertheless, this doesn’t mean that the life of a franchise entrepreneur is going to be easy. On the contrary, the activity also has many challenges and barriers that will demand knowledge and effort on a daily basis.

4. Social entrepreneurship

We can say that the main objective of this type of entrepreneurship is to “make a difference for someone”. After all, in social entrepreneurship, the product or service offered must generate benefits for a certain part of society. Therefore, profit is no longer the main purpose of the business in this model.

A good example that we can mention are NGOs, which can focus on professional training, psychological care, health care, social inclusion and many other possibilities.

5. Business Entrepreneurship

This type of business is linked to the creation of new companies. The main focus, in this case, is to win more customers, maintain the increase in profits and, above all, make the business increasingly competitive. The purpose here is always to meet a market need. Most of the time, this objective is achieved through innovation of a process that already exists. Therefore, it is common for business entrepreneurship to involve a certain amount of risk .

6. Green entrepreneurship

This type of business is made up of companies that are concerned about how their actions and projects impact the environment. Thus, organizations adopt some sustainability practices and save natural resources to produce their products. They end up combining profit with concern about the impacts they cause on nature. Thus, they contribute to the preservation of the environment and also gain a competitive edge, strengthening the company’s image.

7. Digital entrepreneurship

That is why digital landscapes have pushed the growth of entrepreneurship worldwide. With massive presence from the Internet and various new technologies, a number of conditions have been created for entrepreneurs to develop digital products and services. Of course, one of the characteristics of this type of entrepreneurship is that it is extremely versatile, serving content products such as videos, retailers, and much more.

8. Cooperative entrepreneurship

This form of entrepreneurship is based on the concept of collaborative economy. In cooperative entrepreneurship, individual entrepreneurs end up coming together to work together. It works like a support network, in which each professional ends up contributing with a product or service, so that the entire group can have satisfactory results in their businesses.

The idea is always to share both resources and knowledge. Remember that, for management to work, it has to be democratic, with everyone coming together to make decisions. An important detail is that, although all members work together to achieve success, each person has full responsibility for their individual goals.

What to consider when choosing the ideal type of entrepreneurship?

Well, each way of doing business has its advantages and disadvantages, but it also has its own characteristics, which end up being related to the purposes of the person who idealizes the business . So, to make the best choice, it is essential to study what best suits your profile and your ideas.

Furthermore, it is important to research the business format of your main competitors and understand their differences. This is because entrepreneurship also means preparing in advance for the challenges that may arise. Remember that it is not necessary to exclusively follow one type of entrepreneurship.

Here’s an example to make this clear: a freelance professional who makes services available on the Internet ends up using digital and individual entrepreneurship at the same time. Another example is the case of countless entrepreneurs who end up coming together to carry out an environmental project, as they combine social and cooperative entrepreneurship.

So, the choice will depend on your interests and your entrepreneurial profile, and you may fit into several forms of entrepreneurship. The ideal is to think calmly and analyze all the factors before starting a business, so that you don’t have problems in the future or regret the choice you made.

What qualities does a successful entrepreneur need to possess?

Knowledge of the different types of entrepreneurs does not suffice. What a businessman requires to become effective is a series of traits that can better provide conditions to realize the objectives of establishing the business. It requires a person to be motivated when problems and obstacles arise, to be creative enough in order to overcome all these challenges.

Of course, when considering the technical side of the business, knowledge of preparing a good business plan, plan and then control the finances of the company, know how to manage the inventory of the company, and finally how to act effectively in the market. In addition, the importance of not forgetting that marketing is extremely necessary technical knowledge. All companies should know how to promote themselves in the market. If this is not known, then reaching out to new customers and raising good sales will not be achieved.

To achieve this, the ideal is to invest in courses for entrepreneurs, participate in events, talk to people who are already entrepreneurs, in short, seek knowledge to be able to improve and achieve the much desired success.

You are now aware of the main types of entrepreneurship and how to choose one which better aligns with your interest. Remember that if you’re after a successful business, then make sure that you’ll have a competitive advantage in that market, including solutions on the basis of problems from the products or services you offer.