Entrepreneurship and technological innovation (Empreendedorismo e inova??o tecnológica)

Entrepreneurship is closely related to the issue of innovation, in which there is a specific objective of creating something within a sector or producing something new.

Several startups, for example, innovate within an existing sector.

A major startup today that has innovated within an existing sector is Uber, which has created new possibilities in the taxi market.

The classical, neoclassical and Keynesian schools of economics, and, in general, the so-called economic mainstream, rarely address the existence of the entrepreneur.

This is due to the fact that these schools of economic thought tend, according to Block, Bernett and Wood (2002), to use the so-called general equilibrium model in which companies are inserted in a model of perfect competition characterized by: homogeneity in products and services, small size of companies in such a way that they are unable to influence market prices and complete information available to all market participants.

In this type of environment, there is no room for change or innovation, and thus there is no room for entrepreneurs, the authors point out:

If the neoclassical model of perfect competition were a correct explanation of reality, or even close to it, there would be no need for advertising, marketing, brokerage or any other institution that deals with the lack of knowledge about products or services on the part of producers or consumers.

Despite this, and somewhat controversially, it is known that the role of the entrepreneur in creating and implementing innovation is at the center of any type of economic model that works well in the long term.

As Schumpeter (1942) says, he is the agent responsible for creative destruction and therefore for the endless flow of novelties and changes offered by companies to consumers in the market.

One of the only schools of economics that actually studies entrepreneurs is the Austrian School, in which the entrepreneur is considered the center of economic activity and the agent of change.

In economics, according to the Austrian tradition, everything begins with subjective value.

It doesn't matter what companies think about their products.

Only consumers will determine the value of products and pay for them according to their perceived value.

?This concept is closely linked to market democracy, as argued by Mises (Peterson, 2005).

As argued by Hunt (2002), value is the sum of all the benefits that consumers perceive they will receive if they accept a specific offer in the market.

It is the subjectivity of value that makes a wide range of products and services available in a free market economy.

These products come from a wide variety of companies.

Niches emerge and companies rely on innovation to discover and especially create new markets.

Some types of entrepreneurs

Entrepreneurs can be very different from one another. Because of this, we can classify them into different types of entrepreneurs.

This makes naming difficult, but it shows that anyone can be an entrepreneur regardless of their characteristics.

Below are several types of entrepreneurs.

Born Entrepreneur

Born entrepreneurs (mythological) are generally the most well-known and revered.

They are usually people who started working at a very young age, with few conditions, and ended up creating large companies.

Since these entrepreneurs started their work journey at a very young age, they ended up acquiring negotiation and sales skills.

They are visionaries, optimists, always ahead of their time and are 100% committed to making their dreams come true.

Entrepreneur who learns

The entrepreneur who learns can be characterized as someone who, when faced with a business opportunity, decides to learn how to manage his own business.

They are usually those people who, when they least expected it, came across a business opportunity and made the decision to change what they did in life to dedicate themselves to their own business.

Therefore, they are characterized by the unexpected.

Often, this type of entrepreneur imagined that he would always be an employee and did not like taking risks; but, when the opportunity arises, he finds himself enthusiastic.

And then comes the decision-making, which for this type of entrepreneur may take a little longer for him to decide, but he ends up taking the risk and creating his own business, or forming some type of partnership or association.

This is the classic case of when opportunity knocks on the door.

An important point to raise is that the entrepreneur who learns needs an opportunity to arise.

He is characterized by being more cautious than other entrepreneurs; and, therefore, when he comes across an opportunity, he does not take the risk immediately, but rather after seeing the possibilities and viability of the business or idea.

Serial Entrepreneur

A serial entrepreneur is someone who creates a business to sell it.

In this way, the capital earned from this initial idea is used to create another one, sell it again and produce something new every time, becoming a cyclical activity.

Thus, the sale is part of the end of a business and the beginning of a new one.

Corporate entrepreneur

Corporate entrepreneurs have gained importance in recent years due to the growth of multinationals and the need for innovation and continued evolution.

They are executives who stand out and seek to grow within the company, bringing good results to the organization.

They have extensive knowledge of administrative tools and know how to manage a team with excellence.

They are also considered excellent salespeople and negotiators, as they know how to sell their ideas and work in limited situations, in which the company does not give the entrepreneur complete freedom to act.

This type of entrepreneur has the profile that is considered ideal for him [the entrepreneur] to work in large companies, and they are also highly sought after by such organizations.

They know how to develop their networking inside and outside the company to bring people to the team and also generate new opportunities.

Most of the time, they are people who know how to self-promote and are very confident, loving working with big goals and those that generate great rewards.

Social Entrepreneur

A social entrepreneur comes from any non-profit sector and has the characteristics of traditional entrepreneurs of creativity, vision and determination.

They seek social innovation instead of money through employment and a focus on innovation, aiming for the social benefit it can bring, in addition to using their organizational and business experience to help others.

Social entrepreneurs can work in ethical businesses, government agencies, public, voluntary and community organizations.

Entrepreneur by necessity

Entrepreneurs by necessity are those who started a self-employed business because they had no better options for work and needed to open a business in order to generate income for themselves and their families.

Entrepreneurship by necessity is clearly the one that is visibly less destined for success, although there are, indeed, some successful cases.

Most of these entrepreneurs enter the market completely unprepared, without knowledge of the real risks and totally exposed to failure.

Entrepreneur heir

The entrepreneur heir is motivated to undertake from an early age.

His mission is to continue the family legacy, managing the company and the resources involved in it so that the enterprise can be sustained for a longer period of time. Nowadays, it is common for executives to be hired to manage family businesses, but the entrepreneur heir always closely monitors the activities in order to give his impressions and suggestions.

The profile of the entrepreneur heir is not unique.

There are more innovative types, who tend to seek different measures from those currently operating in the company and who are more visionary.

On the other hand, there are the more conservative types, who tend to keep things as they are and have a management much closer to the previous management.

Normal entrepreneur

The normal (planned) entrepreneur is one who seeks to train himself, is concerned with the organization's next steps, minimizes risks, and has a clear vision of the future and his goals for the organization.

Planning increases the business's ability to be successful.

Therefore, the normal entrepreneur would be the most complete and a reference to be followed, but does not represent a significant number of entrepreneurs in practice.

Entrepreneurs need to be clear about their audience and the legal aspects related to the name and brand

The first step in choosing a company name, as well as in designing the business, is to have a clear definition of the segment of activity, market niche, values, differentials and target audience.

These issues need to be included in the preparation of the business plan for the new venture, as they provide important guidelines for defining the name that should convey the company's values and differentials and clearly communicate with the target audience.

Businesses focused on popular segments, with names in the native language and clear references to the segment in which they operate, tend to present the company and its business in a simple and direct way.

This makes it easier for the public to understand the activity, products and services.

This strategy is also valid for those who operate in retail, such as drugstores and electronics companies, where communication must generate immediate purchase stimuli.

For this type of company, it is important to choose a name capable of transmitting and reinforcing the most direct and objective message possible.

In the case of businesses that operate with more elite audiences or have products and services with consumption rituals stimulated by status and lifestyle (healthy eating, fitness, aesthetics, sustainability), playful names that explore concepts and differentials are better accepted.

In these businesses, expressions and words in other languages help to differentiate the brand, such as gourmet and fit, and are widely used in the food and health areas.

New entrepreneurs should also pay attention to legal issues.

It is important to check the availability of the chosen name with the National Institute of Industrial Property (INPI), the Commercial Boards of all states and Registro.br (linked to the Brazilian Internet Steering Committee – CGI.br).

After this check, arrange to register the name and brand with the INPI.

There are specialized companies that can help with this type of consultation and registration.

Finally, the brand needs to become known and, from then on, take good care of its image.

To do this, the name and brand of the business must always be accompanied by good marketing and advertising strategies and a reputation based on good service and respect for consumers and the company's values.