1. What is Entrepreneurship?
Entrepreneurship, if translated into Vietnamese, means “the spirit of entrepreneurship” or can be broadly understood as “the spirit of ownership.”
The spirit of entrepreneurship is the ability and willingness to develop, organize, and manage a business venture while being ready to accept and overcome risks to generate profits. The most prominent example of entrepreneurship is starting new businesses.
In the 17th century, the concept of Entrepreneurship was first introduced, and this term has been developed and widely used up to the present day. Many people believe that the term Entrepreneurship does not simply mean starting a business but encompasses many other meanings.
2. Are there any differences between Entrepreneur and Startup?
Entrepreneur and Startup are often conflated, with many assuming their meanings are entirely identical. However, upon closer examination, Entrepreneur generally encompasses a broader scope than Startup. Startup founders can be Entrepreneurs, but not all Entrepreneurs are Startup founders. This is because Entrepreneurs sometimes include small business owners – Small businesses.
Entrepreneurs typically start businesses with less innovation and lower risk, focusing instead on immediate profitability. On the other hand, businesses run by Entrepreneurs tend to have relatively limited scalability. Nevertheless, entrepreneurship can still lead to the creation of significant companies.
Startups, on the other hand, are founded on new businesses derived from unique ideas or solutions to existing societal problems. Startup ideas are often groundbreaking, incorporating new technologies.
In the early stages, Startups require a significant amount of time, money, and effort. The risks and chances of failure are particularly high, with many Startups failing before completing their products or projects. However, if successful, the growth potential of Startups is immense.
For example, Uber is one of the world’s leading Startups, launching an app to provide taxi services. Despite not owning any cars, the company achieved success through groundbreaking innovations. Uber is now present in 58 countries, completely transforming the “game” in the taxi service industry.
As for an example of Entrepreneurs, anyone who opens a store, a grocery shop, or simply trades goods in a marketplace can be considered an Entrepreneur. This is because they are fully capable of managing their own business ventures.
3. Some common types of Entrepreneurship today
A. Small Business Entrepreneurship
Small business entrepreneurship requires less capital compared to many other models and involves minimal financial risks. This model does not aim to expand into multiple chains or large corporations. Examples of small business entrepreneurship include a grocery store or a small restaurant.
The initial capital often comes from personal savings or loans from friends and family rather than external funding. If the funds are insufficient to cover business operations, entrepreneurs in this small business model may turn to bank loans for additional financing.
B. Scalable Startup Entrepreneurship
This type involves starting businesses based on unique ideas with the vision of completely disrupting the industry they operate in. These companies provide distinctive products or services and consistently scale and grow over time. Entrepreneurs in this category are typically investors with significant capital, aiming to develop ideas and penetrate various markets.
C. Large Company Entrepreneurship
Large companies often have a limited lifecycle if they stick to a single product and resist innovation. This has become increasingly evident over the past decade. Most large businesses need to innovate by developing auxiliary products around their core offerings.
Technological advancements and shifting customer demands require companies to consistently create new products. These innovations may come from in-house departments or by acquiring other companies.
Entrepreneurs in this type of entrepreneurship are often internal employees or external hires tasked with developing new business areas or divisions.
D. Social Entrepreneurship
Social entrepreneurship focuses on creating benefits for the community. Most of their products and services are designed to address societal issues. This type of entrepreneurship is not driven by profit and often includes nonprofit organizations.
4. Conclusion
Hopefully, the above information has provided you with a clear answer to the question “What is Entrepreneurship?” as well as a better understanding of the differences between this concept and a Startup. To read more interesting articles on economic knowledge, stay tuned for the upcoming posts on The Tech-conomix Hub!