Entrepreneurship is the process of starting a business to earn a livelihood. Based upon the size, risk involved and the magnitude of profit generated, it is classified as follows:
Small Business Entrepreneurship
Making ladoos and selling them to earn revenue is small business entrepreneurship. Beauticians who go from one house to another to provide their services to the customers are said to run a small business. A florist shop, grocery store, food catering companies and even the dabbawalas of Mumbai come under this category. Such entrepreneur is anybody who generates revenue by selling his own goods and services. Such people hire a few local employees if the need be. The main aim is to earn enough profits to sustain their families.
Large Company Entrepreneurship
Large companies have finite life cycles. These expand by innovating something new on a regular basis, mostly by launching new products that are variants around their core product. They basically cater to the changing customer tastes, new technologies, legislation, new competitors, etc. This requires large companies to create entirely new products sold into new customers in new markets. Existing companies do this by either acquiring innovative companies or attempting to build a disruptive product inside. Ironically, large company size and culture makes disruptive innovation extremely difficult to execute
Scalable Start-up Entrepreneurship
Flipkart is an example of scalable start-up entrepreneurs since their vision is to bring a wide change in the shopping pattern of customers by encouraging more online shopping. Such entrepreneurs start a company knowing from day one that their vision could change the world They attract huge investments from venture capitalists. Because of the outsize returns they attract almost all the risk capital. Their job is to search for a repeatable and scalable business model. When they find it, their focus on scale requires even more venture capital to fuel rapid expansion.