What Is Entrepreneurship? A Guide

In the simplest understanding of the word, an entrepreneur is a person who starts a new business, and entrepreneurship is the process of starting and running that new business. India is home to the world’s third largest start-up ecosystem, according to the Department for Promotion of Industry and International Trade, with more than 100 million entrepreneurs operating within the country [1, 2]. 

Delve into the ethos and different types of entrepreneurship and examine how entrepreneurship fits into society and the economy.

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What is entrepreneurship?

Approaching entrepreneurship broadly, it would seem that you could consider any small business owner an entrepreneur—and realistically, they can be. Two significant characteristics of entrepreneurship typically include risk-taking and forward-thinking.

Risk-taking is the awareness that even though your business may not turn out the way you expect it to, you’re willing to try anyway. Often, this willingness comes from weighing the risks against the potential rewards.

Truthfully, risk-taking is inherent in any new business venture because businesses are predicated on some level of uncertainty. For example, market research may predict certain consumer behaviours, indicating a need for your service—but upon launching your business, you may realise the need wasn’t as great as expected.

Forward-thinking and innovation go hand in hand. Many times, the idea of creating a better future fuels entrepreneurial ideas. This can come from a new product that changes the way people interact with the world, a new process that changes the way businesses interact with consumers, an improvement to the way a business operates within an established industry, or any other mechanism that can make business better.

Many business owners adopt a level of foresight about their business's long-term success potential that qualifies them as forward-thinkers. In fact, one significant difference between a small business owner and an entrepreneur might be the degree to which they consider the larger implications of their innovation style.

Types of entrepreneurship

You can further segment entrepreneurship into different categories that describe the organisation or innovation driving the business. Four common types of entrepreneurship are small business, scalable start-up, large company, and social entrepreneurship.

Small business entrepreneurship

Small business entrepreneurship takes place on a localised level without the expectation of wide-scale expansion. Examples of small business entrepreneurship would be opening a local restaurant, gift shop, or furniture restoration business.

Scalable start-up entrepreneurship

The concept of innovation that begins on a small scale with long-term plans for widespread growth guides scalable start-up entrepreneurship. Examples of successful scalable start-ups include companies like Meta or Uber.

Large company entrepreneurship

Large company entrepreneurship is a business sector launched within an established business. This can occur either with an acquisition of another business or the creation of a new internal division. Examples of large company entrepreneurship would be Disney’s acquisition of Pixar or Google launching Google Maps.

Social entrepreneurship

Social entrepreneurship places a heavy emphasis on creating societal change. The overall goal is to benefit humankind and our way of life, and it can occur on a local or global scale. Examples include Goonj, which collects unused clothing in urban locations to send to rural areas; Akshaya Patra Foundation, which operates a non-governmental organisation kitchen to create mid-day meals for India’s school children; and Nextdrop, which provides urban areas throughout India with information about the water supply.

The importance of entrepreneurship

Entrepreneurship is vital to society because it helps drive innovation and moves us toward an improved state of being. Basically, when entrepreneurs take on risk, they are doing so on behalf of their community at large.

As a business function, entrepreneurship also has close ties to the economy. Entrepreneurial innovations can fuel economic growth as businesses strive toward efficiency, and as entrepreneurial endeavours grow, they can promote job growth and create new opportunities.

When considering entrepreneurship, consider how your business will impact the world outside of your immediate business processes. A broader perspective that incorporates the way your business will interact with your community, society, other businesses, and your industry at large is the difference between starting a business and engaging with entrepreneurship.

Keep learning

With their inclination toward innovation, an entrepreneur engages in continual learning. To continue your journey toward entrepreneurship, consider the Entrepreneurship Specialisation from Wharton. Through five courses, you’ll learn about the process of launching your own business with an entrepreneurial mindset. Or, for even deeper learning, you could consider earning a Master of Science in Innovation and Entrepreneurship from HEC Paris. Both are available on Coursera, with classes you can complete from anywhere with an internet connection.

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IBM Data Science

Prepare for a career as a data scientist. Build job-ready skills – and must-have AI skills – for an in-demand career. Earn a credential from IBM. No prior experience required.

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713,489 already enrolled

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Average time: 4 month(s)

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Skills you'll build:

Data Science, Generative AI, Predictive Modelling, Data Analysis, Data Pipelines, Scikit Learn (Machine Learning Library), Data Manipulation, Predictive Analytics, Regression Analysis, Machine Learning Methods, Model Selection, NumPy, Data Import/Export, Data Cleansing, Exploratory Data Analysis, Pandas (Python Package), Predictive Modeling, Feature Engineering, Statistical Modeling, Data Transformation, Data Visualization, Statistical Analysis, Data Wrangling, Python Programming, Web Scraping, Computer Programming, Data Processing, Programming Principles, Numpy, Data Collection, Pandas, Scripting, Jupyter, Automation, Object Oriented Programming (OOP), Data Structures, Application Programming Interface (API), Scatter Plots, Box Plots, Plotly, Heat Maps, Histogram, Dashboards and Charts, Seaborn, Matplotlib, Geospatial Information and Technology, Interactive Data Visualization, dash, Dashboard, Data Visualization Software, Transaction Processing, Databases, Cloud Databases, Query Languages, Relational Databases, SQL, Database Design, Database Management, Relational Database Management System (RDBMS), Jupyter notebooks, Stored Procedure, Supervised Learning, Classification And Regression Tree (CART), SciPy and scikit-learn, classification, Machine Learning, Unsupervised Learning, Dimensionality Reduction, regression, Random Forest Algorithm, Applied Machine Learning, Statistical Machine Learning, Clustering, Machine Learning Algorithms, Data Mining, Data Storytelling, Business Analysis, Decision Tree Learning, CRISP-DM, Data Quality, Data Modeling, Peer Review, User Feedback, Methodology, Github, Data-Driven Decision-Making, Jupyter Notebook, Data Presentation, K-Means Clustering, Data Science Methodology, Git (Version Control System), Rstudio, Cloud Computing, Big Data, Statistical Programming, R Programming, Deep Learning, Digital Transformation, Artificial Intelligence, Data Ethics, Quering Databases, Data Generation, Interviewing Skills, Professional Networking, Resume Building, Business Writing, Problem Solving, LinkedIn, Job Analysis, Career Development, Professional Development, Presentations, Job Preparation, Talent Sourcing, Recruitment, Portfolio Management, Communication

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