Different types of entrepreneurship: What’s best for your business?

By Jelena Djurkic

October 14, 2013

Entrepreneurs are often clumped into one big group. Images of the next Mark Zuckerberg hacking away in a dorm room are what come to mind for most people these days.

The reality is much different. Entrepreneurs come from various fields and with various ambitions. Some want to make money and scale, others want do social good.

Some want to do both.

Now, more than ever, there are business structures to accommodate every entrepreneur. Last week’s Entrepreneurship 101 lecture introduced the audience to the different types of entrepreneurship and questions every person should consider before committing to a business.

The right corporate structure

Answering these questions can help you decide where your business should fall in the organizational spectrum. Most people are familiar with traditional corporate structures: Non-profit charities deliver social return funded largely by grants while for-profit businesses such as banks focus solely on financial return.

B Corporations are an emerging option for those who want to balance social impact with financial return. These ventures use the power of business to solve social or environmental problems. Bullfrog Power, a MaRS client that offers clean energy solutions, is a certified B Corp.

No matter which structure you choose, each carries its own benefits and risks. For example, if your business relies solely on government grants, an election or change in government policy can put your organization at risk. Explore the lecture slides for more examples of business structures.

Financing your business

If you have a great idea and know your business motivation, you will need financial resources to develop it. Should you target debt or equity financing, or bootstrap your way to profits? Another option is crowdfunding, which involves raising small amounts of money from a large number of people, typically online. Crowdfunding can also be used to build company awareness or secure pre-orders of a product. MaRS client PUSH, for example, is currently running an Indiegogo campaign to build support for its wearable fitness device. Always remember: If you wouldn’t invest in your own idea, then chances are, others won’t either.

MaRS offers several other financing options for entrepreneurs:

• The Funding Portal search tool provides access to more than $30 billion in funding sources for startups.
• The JOLT accelerator invests $50,000 in each high-growth web and mobile company selected to participate in program.
• Social Venture Connexion (SVX) connects impact ventures and investors to catalyze debt and equity investment capital for ventures that have social and environmental impact.

So whether you have years of business experience or just a really good idea, check out the lecture video below to catch up on the latest financing options and ways to structure your business.

Produced by MaRS Media.