We sometimes mean more than simple business when we talk about entrepreneurship. It also means innovative and striking ideas to propose solutions to the affected portion of society. Starting the solution-oriented business idea in a proper way to well-manage the launch, production, and operational affairs of it all falls under the primary head of entrepreneurship.
In the article below, we are going to discuss the concept, types, functions, and problems of entrepreneurship in relevance to Pakistan society. Let us get started!
Types of Entrepreneurship
When talking about entrepreneurship, we may speak of four diversions. These four types represent the size of the business organisations.
- Small-Business Entrepreneurship
- Scalable Business Entrepreneurship
- Large Company
- Social Entrepreneurship
Small-Scale business entrepreneurship represents the start of a small business without growing it into a massive conglomerate or launching numerous chains. Take an instance of a small company enterprise might be a restaurant with only one location, a single-location grocery store, or a retail store where you may sell your handcrafted goods. Small-scale entrepreneurs typically invest their own money, and if their firm makes a profit, they become successful. They do not have any outside investors, and they only accept loans that will assist them in keeping their firm operating. This form is also known as the solopreneur ship.
On the other hand, there comes a scalable business entrepreneurship concept. Innovative ideas, technological advancements and related solutions are the best examples of scalable business entrepreneurship. This type of entrepreneurship can be expanded with the passage of time. E-commerce, franchising, digital products, and retail chains are some of the prominent examples of scalable business entrepreneurship that is expandable. This type of entrepreneurship is a partnership.
Coming towards the third option on our list –large company entrepreneurship. The large company is entirely different from the previously mentioned two types. The company in Pakistan is formatted under proper guidelines by the companies act 2017. All matters are sorted and managed according to the guidelines described in the ordinance. However, the life of this entrepreneurship is indefinite. In its comparison, solopreneurship is too limited to the life of a solopreneur. At the same time, the scalable business is also a limited type of entrepreneurship under a single contract.
Last but not least, social entrepreneurship is also known as a not-for-profit organisation. The solution to society’s problems is called social entrepreneurship. The person can manage the NGO under the law prescribed in Pakistan and manage the finances through donations and zakat collections.
Defining Characteristics of Entrepreneurship
There are seven top-notch characteristics of an entrepreneur. These are described as under. Entrepreneurs come together as per the case of business formation shared above and have some of the more valuable skills to initiate, manage, and excel in functionality.
- Entrepreneurs are Versatile in their Passions
- Entrepreneurs are Flexible
- Money Management is excellent in Entrepreneurship
- Entrepreneurship Develops the Resilience
- Entrepreneurs are Focused
- Entrepreneurs are Good Communicators
- Entrepreneurs are Learners
- Entrepreneurs are People managers
Entrepreneurship is about continuing business in the best possible way. Therefore, entrepreneurs must have all the skills mentioned above. Some entrepreneurs have built-in skills, and some develop over time. Ultimately, every entrepreneur aces with the skills to stay vigilant, open, understanding, good in money management, focus, communication and learning abilities. In addition, many get the knowledge and polished skill to execute the planned roadmap accurately.
Pros & Cons of Entrepreneurship
Everything comes with advantages and disadvantages on all levels. Entrepreneurship is no exception. The pros and cons are penned below.
Pros of Entrepreneurship
- Self-employment, or entrepreneurship, is the freedom to choose your schedule and location for work.
- If your creative idea for entrepreneurship relates to your interests or hobbies, the entrepreneurship journey allows you to turn your passions into a job.
- Entrepreneurs have complete control over their business operations and the freedom to act fast because they are business owners.
- Entrepreneurs may address problems creatively and often experiment since the bureaucracy of large, established companies does not burden them.
- A start-up business owner with a lucrative business idea can earn millions or even billions of dollars, as successful entrepreneurs like Mark Zuckerberg and Bill Gates demonstrate.
Conns of Entrepreneurship
However, entrepreneurship is not free of dangers or hazards. However, these conns are manageable.
- Investing money in your idea is necessary for becoming an entrepreneur. You’ll oversee handling disgruntled investors and unpaid bank debts if it doesn’t work out. Therefore, financial risk is always there.
- Many entrepreneurs put forth much time and effort to turn their dreams into reality, working long hours to come up with fresh ideas, courting investors, and managing the day-to-day operations of their companies.
- Everyone will turn to you as the boss of your own company for vision and direction, which can be pretty stressful for you. However, becoming your boss is too good to become.
- Even though your business idea is original, you will still face fierce competition, whether from well-established companies in your field or other business owners hoping to surpass you at the finish line.
- Successful business people might make a lot of money, but it will take time. Expect tough times while you devote all your revenue to expanding your company in the interim. Therefore, for initial days, earning potential is low.
Conclusion
Entrepreneurship is a self-enlightening idea. If a person follows the strength of his passion, combines it with the problem of society as a whole, and offers reliable solutions at reasonable prices, there is a bright chance to bring a massive change in society as a whole.
