Entrepreneurial ventures are nothing new, but now more than ever, people are taking their futures into their own hands — whether due to the desire for financial freedom or a need for more flexibility.
According to the U.S. Small Business Administration (SBA), 2023 alone saw historic small-business growth, with a record-breaking 5.5 million new business applications filed. Additionally, female entrepreneurs are leading the charge. Between 2019 and 2023, the growth rate for women-owned businesses was 94% higher than that of men-owned businesses.
Yes, it’s a fantastic time to be an entrepreneur. But what is entrepreneurship, and why is it important? Let’s dive into the meaning of entrepreneurship, what it entails to start a business from the ground up, and how aspiring business owners can achieve entrepreneurial success.
Types of Entrepreneurship
Innovative entrepreneurs know there isn’t just one way to embrace the entrepreneurial spirit. Here are some of the different ways to pursue your entrepreneurship journey.
Small-Business Entrepreneurship
Small, independent businesses are often born out of owners’ passions, like a graphic designer who starts an agency.
However, small businesses can also be larger operations. For example, by SBA size standards, manufacturing operations with 500 or fewer employees still qualify as small businesses eligible for small-business government contracts, grants, loans, and other sources of funding.
Scalable Startups
Tech companies are the most obvious entrepreneurship examples of scalable startups that have the potential for explosive growth. For instance, Jeff Bezos began Amazon.com in the ’90s out of a garage, focusing initially on online book sales. Today, Amazon is a trillion-dollar company.
To mirror Bezos’ success, you’ll need a rock-solid business plan to woo investors and secure capital. Having clear growth plans can also help attract and retain employees who are excited about being a part of your growing enterprise.
Large-Company Entrepreneurship
Large-company entrepreneurship can occur within big companies whereby employees become entrepreneurs in their own right. These companies may be looking to expand into new markets, develop new products and services, create new subsidiaries or divisions, develop partnerships, or acquire smaller businesses.
With this form of entrepreneurship, the end result is often diversified income streams, like when Amazon acquired MGM Studios to strengthen its Prime Video offerings.
Social Entrepreneurship
From climate change to homelessness, social entrepreneurs use their ventures to tackle various social issues. Social entrepreneurship may include nonprofits solely dedicated to particular causes. It can also involve for-profit enterprises that donate time or money to worthy causes that align with their core values.
Essential Skills of Successful Entrepreneurs
With so many ways to start a business, what is the role of the entrepreneur in any particular venture? With their entrepreneurial mindsets and stick-to-itiveness, entrepreneurs possess unique skills that are crucial in getting new businesses off the ground.
Innovation
Creative thinking and the ability to see the road ahead enable entrepreneurs to be change-makers. They develop new ideas that disrupt industries and shift cultural paradigms. (Can you even remember what life was like before social media?)
Adaptability
Being able to pivot quickly in the face of challenges is vital to entrepreneurial success. Consider how businesses responded to the pandemic, for example, introducing new ways of ordering goods and services.
Discipline
It takes grit to work tirelessly in pursuit of a dream. Long hours, little sleep, and many sacrifices are par for the course.
Resilience
Staying strong in the face of inevitable challenges is vital for long-term success. From financial struggles to scaling difficulties, entrepreneurs must be able to fortify themselves against the roadblocks.
Challenges Faced by Entrepreneurs
Pursuing entrepreneurial opportunities is hardly without its struggles. Below are some of the most common hurdles that business owners must overcome.
Financial Challenges
The costs to start and grow a business can vary by the business type and industry. From inventory and supplies to payroll and marketing, you’ll want to nail down the numbers for your specific business so you’re not facing financial problems. The SBA’s startup-cost calculators can help you estimate your capital needs.
Market Competition
If there’s “no such thing as a new idea,” as Mark Twain put it, then you need to execute your idea better than the competition. It might mean putting a new spin on an old idea like Dollar Shave Club did when it introduced direct-to-consumer shaving products available by subscription. Another example is Airbnb, which capitalized on the peer-to-peer rental model to connect hosts with travelers seeking unique, non-hotel destinations.
Navigating Regulations
Most businesses must comply with certain industry regulations, particularly in the age of privacy and consent laws. For example, websites must be transparent with their privacy policies and tell users how they collect and use data. Failure to follow the rules can invite fines, penalties, and legal challenges. So, it’s important to consult with legal experts during the startup stages.
How To Become an Entrepreneur
While there are many steps to starting a successful business, you can set yourself up for success by following these tips.
- Discover a niche problem to solve: What are some of the quandaries you face daily? How can you solve that problem for people like you?
- Find funding sources: From SBA loans and grants to private investments and savings, you have many possible funding options. Consider all avenues to find the ideal scenarios for your needs.
- Develop a diverse skill set: Diversify your skills as much as possible so you can easily wear many hats, encompassing marketing, sales, operations, and leadership responsibilities.
- Do networking: Consider chambers of commerce, business mixers, conferences, trade shows, and other types of networking opportunities as you work to expand your network.
Future of Entrepreneurship
Regardless of what type of business you wish to start, you can expect several evolving trends to impact the ways you do business. For instance, the rise of technological innovations like artificial intelligence will continue to shape various aspects of business. By taking advantage of the available opportunities, staying consistent, and being tenacious, you can carve out your own niche and count yourself among the nation’s 33 million small businesses.
As you work to follow your entrepreneurial path, finding the best offices to house your new venture can be one key to success. At Industrious, we know there is no single definition of entrepreneurship. So, we have locations to serve businesses of all sizes, from solo entrepreneurs and freelancers to larger enterprises with multiple team members.
Whether you simply require occasional meeting space and a business mailing address or a dedicated office, we have solutions to fit your needs. To learn more, we invite you to browse our available locations and book a tour to find your ideal space.