Aremo Blog

Best Marketing and Advertising Agency

Entrepreneur: Definition, Types and Functions

Aremo Blog featured Image on ENTREPRENEUR DEFINITION, TYPES AND FUNCTIONS

People believes anyone who owns or starts a business or activity that brings in money, are always refereed to as entrepreneur.

Most individuals doesn’t know the constituents that makes up an entrepreneur. Being an entrepreneur goes beyond selling shoes and jewelries, starting a shop as a stylist, fashion designers and co.

The question popping within you now is, should business owners be referred to as an entrepreneur or not and if no, then who are entrepreneurs and what do they do?

Just chill, take a glass of water and relax. In this write up, I’ll explain extensively and precisely, who an entrepreneurs are, their activities and functions.

 

Who Is An Entrepreneur?

An entrepreneur is an individual, who creates job opportunities, by starting a business, bearing most of the risks and enjoying most of the rewards.

They creates firms to realize their idea, known as entrepreneurship, which sum capital and labor in order to produce service for money

Read Also: Why You Should Own A Business

Summing up capital and labors simply means, an entrepreneur knows fully that, he’ll be the source of the financial dispensation and get labors to work, in exchange for salary/wages, thereby creating job for those who are ready to exchange their knowledge/man power for money.

This means, it is very wrong to categorize Stylist, Fashion designers, sellers etcetera as an entrepreneur as they have never, in any way created any job or actualize an idea that creates goods and services for the purpose of generating income.

 

Function Of An Entrepreneur

Entrepreneur is a person responsible for setting up a business or an enterprise. Entrepreneur is one who has the initiative, skill(s) for innovation and who looks for high achievements. He works for the good of the people. He open up many employment opportunities and leads to the growth of other sectors.

These (entrepreneurs) are people who have a passion for creating change in this world. They need a certain set of skills to be effective leaders and innovators. Since there are many types of businesses, there are also many kinds of entrepreneurship.

Although, entrepreneurship is the overall process of developing, launching and running a business. There are yet, many types of entrepreneurship.

Since, people has varying aspirations and visions for the kind of businesses they want to create, it is necessary they import skills and characteristics for it.

While some believes in man power before they can attain/achieve success, yet another number of people are much less not concerned about profits. All they want to do, is to create an atmosphere that provides social good.

Read Also: How To Be Successful In Your Business

Types of Entrepreneur

 

1. Social Entrepreneurship

A social entrepreneur is has the motivation of solving social problems such as foods, money, education etcetera. Companies in this category develop products and services so as to make the world a better place. This mostly describe a non profit organizations.

 

2. Big Business Entrepreneurship

One of the core disadvantage for a business as it’s getting larger is that, it starts to move slowly. As a result, big businesses often try to jump-start entrepreneurship by snatching up a smaller company and delegating innovation to the new acquisition.

The larger company may leverage on limited product or service life cycles and have experienced professionals take into harness, new projects.

 

3. Small Business Entrepreneurship

Your entrepreneurship has to be more dependent on good, old-fashioned elbow grease, when you really don’t have the resources of a big business and have to be more conservative in your accounting,

Here, innovation is typically more modest/small-scale and based on a new twist on currently available product and services – or simply doing a job well – while profits are used to support  the company’s family rather than being used for the business expansion. These small businesses are often made up of family members and friends. Typical examples are; Local restaurants, dry cleaners, warehouses and co.

 

4. Innovation Entrepreneurship

Innovation entrepreneurship are basically the source of new ideas and innovations, which are then transformed into adventures. These firms has the motive of changing how people live and seek ways to make products and services stands out, thereby accomplishing something that other companies haven’t

Products such as iPhone shows how innovation can completely alter how people go about their daily routines. This kind of entrepreneurship is ambitious and often requires significant investment to get off the ground.

 

5. Scalable Start-up Business Entrepreneurship

Scalable startup business entrepreneurship begins with a founder’s belief that they can change the world, according to Steve Blank,  the father of the lean start-up concept. Venture capitalist often swoop in to fund these startups in the hope of landing massive returns. Then they hire highly skilled and educated professionals to run them, seeking to address market holes or disrupt disrupt entire industries