According to Kendrick Lamont Elkins, an experienced marketing strategist and successful non-profit executive, entrepreneurship is the backbone of socioeconomic prosperity. It improves living standards and creates wealth by allowing you to ditch your traditional 9-5 job and use your ideas to develop and maintain a successful business.
Entrepreneurs with a passion and commitment drive change with innovation and introduce new products/services to the market. The purpose is to provide value to consumers, create multiple income streams, and generate higher investment returns.
Startups can create jobs, new products, and services to streamline economic processes. That’s why entrepreneurs need to carefully analyze different types of startups to gain insights and use this knowledge to make informed decisions. The purpose is to find opportunities for development and success in the growing industry. Read on!
Small Business Startups
Small business startups are the most common types of startups in entrepreneurship. According to Kendrick Lamont Elkins, small businesses vary in size, operations, and capacity for growth.
Various factors characterize small business startups, such as organizational structures, management styles, and freedom of action. Therefore, entrepreneurs must determine the opportunities and threats before starting a small business.
There are numerous ways to get the job done well. Kendrick Lamont Elkins recommends developing a business framework, conducting market research, creating a plan and budget, and focusing on the company’s structure to streamline the entire process.
Anyway, small business startups offer entrepreneurs a wide range of benefits, including independence, financial rewards, more control, reputation, diverse opportunities, equity, and prestige. Remember, your strategy can make or break your business. Therefore, it is wise to follow a step-by-step approach and review your progress from time to time.
Scalable startups hold an important value in entrepreneurship. Kendrick Lamont Elkins says that scalable startups use innovative approaches, such as a repeatable business model to turn small companies into large corporations with massive growth and profit generation opportunities.
An entrepreneur who launches a scalable startup enters the large market by introducing new products and services with unique features. The most common examples of scalable startups are Google, Facebook, Twitter, Skype, and other companies because once smaller online platforms, these companies have turned into giant corporations that have revolutionized the online world.
Entrepreneurs launch a startup by creating and selling products and then selling the company for a higher profit. So, as the name indicates, buyable startups’ primary objective is to generate revenue and sell the business for more money.
For example, you can create a web application, software as a service (SaaS) platform, android app, or iOS app and launch the product. The next step is to reach your target audience and encourage them to use your product. When the number of sales soars, your product occupies a better position in the market.
According to Kendrick Lamont Elkins, a better product-market fit allows you to use your product to a larger company and earn more. For example, Google acquired Divshot, a web-based startup company with a strong reputation in the market.
Social startups allow entrepreneurs to combine commerce and social issues. The primary objective of launching and running a social startup is resolving societal problems and creating a positive impact on the community.
Entrepreneurs use different approaches to encourage people to donate to a greater cause. Social entrepreneurs make substantial efforts to develop, fund, and implement solutions to society, culture, community, and environmental issues.
Microfinance institutions are a typical example of social startups for entrepreneurs. These organizations offer banking services and financial products to low-income families, individuals, and communities. The aim is to help the underprivileged and allow them to leverage the basic necessities people enjoy in the community.
According to Kendrick Lamont Elkins, Bill Gates, one of the wealthiest businessmen in the world, is also a social entrepreneur because he oversees the Gates Foundation, a charitable organization with a mission to connect the world and provide food, health, education, and other benefits to people in underdeveloped and developing countries.
Startups are a touchstone of a country’s socioeconomic growth, and entrepreneurs play a crucial role in running the economic wheels. There are different types of startups in entrepreneurship. Each comes with its own pros and cons.
Therefore, Kendrick Lamont Elkins recommends performing thorough research to choose the one that best aligns with your business goals. That way, you can create value for consumers, generate profits, and bring sustainability to the socio economic sector.