So you want to be an entrepreneur, but which one? There are many types of entrepreneurs and each has a different goal. Although it may be unlikely to start a business based on the type of entrepreneur you want to be, understanding them can provide some inspiration. In this guide, we will go through 9 types of entrepreneurship with examples of what each one entails.
Small business entrepreneurship
I once had a question about small businesses, “Why do small businesses stay small?”, growing your business means greater revenue and profits which translate to a better lifestyle. However, I now understand that bigger business comes with greater responsibility and more time investment, that’s why small businesses remain. Small businesses stay small because the sole goal of these small business owners is to provide for their families and have no intention of making more money than what they need.
Examples of small business owners are local restaurants, grocery stores, hair salons, and home cleaning services.
Scalable startup entrepreneurship
Startup entrepreneurs are the ones who identify a gap in a market, a solution to a pain point, and have the ambition to change the world with their product or service. They understand the process and steps to grow their business, the importance of KPIs, how to build a strong team and company culture, perform market research, and build a system to support their business growth.
StealthGPT and Agility Robotics are some examples of scalable startups. Some other examples of scalable startups before they become large companies are Amazon, Uber, Airbnb, and Netflix.
Large company entrepreneurship
As a scalable startup grows and has an established infrastructure, it becomes an organized and mature company. A large company has gone through the initial trial-and-error phase developed standardized protocols and procedures, and has a team of experts to support its long-term sustainability.
Companies that belong to this category of entrepreneurship are Apple, Microsoft, and Shopify.
Social Entrepreneurship
Social entrepreneurship can be the most rewarding and fulfilling type of entrepreneurship. Social entrepreneur is motivated by their desire to solve social problems such as inequality and poverty, in order to make the world a better place. Their goal is neither profits nor business growth and only ask for enough to sustain their operations and missions.
One example is TOMS. TOMS gave away one pair of shoes for each pair sold and has given 100 million pairs in 2020. They have now evolved their impact model to give away ⅓ of their profits for grassroots goods, continuing to make an impact on the community.
Innovative Entrepreneurship
Innovative entrepreneurs are imaginative and creative. They have a constant flow of novel ideas that they can’t wait to put into action. They are the ones that revolutionize the industry by creating something that nobody has imagined before.
Examples of this type of entrepreneurship are Facebook and Apple. As you can see, this type of business often also shares the trades of scalable startups.
Imitative entrepreneurship
Imitative entrepreneurship is similar to scalable startups in the sense that they identify a gap in the market. However, they aim to build a profitable business by improving the existing product or service to suit a different audience. In the business world, you don’t have to reinvent the wheel. Imitative entrepreneurs are not copycats, they deserve merit for their efforts in making products or services better.
Examples of imitative entrepreneurship include Zomato, which imitated Yelp, and Lyft and Grab which imitated Uber.
Franchise Entrepreneurship
If you want to make money from using others’ business ideas, you may consider franchise entrepreneurship. A franchisor sells a franchise to the franchisee, providing training, support, the name, and the right to operate a franchise, while the franchisee pays the franchisor a fee. This business model is safer as it has an established system, proven success, and support to help a franchisee to successfully run their own franchise. However, it requires a significant amount of investment.
MacDonald’s, KFC, Domino’s, and 7-Eleven are all examples of franchise businesses.
Buyer entrepreneurship
Buyer entrepreneurship is a form of entrepreneurship where an individual, a group of people, or a company purchases other businesses. They search for promising businesses with the potential to grow their profits.
Many businesses fall within this category, including private equity firms and some large companies.
Personal brand entrepreneurship
Personal branding may not fit the traditional image of entrepreneurship but it has certainly gained popularity as social media become an indispensable part of our lives. Social media influencers, Youtubers, gurus, and coaches have utilized social media to build their personal brands and make money through advertisements, affiliates, sponsors, and courses.
Examples of successful personal brands include Tony Robbins, Alex Hormozi, and Gary Vaynerchuk.
Want to start your own online business but don’t know where to begin? Check out our free guide on “How to Start An Online Business”. This guide gives you a step-by-step roadmap, guiding you from brainstorming ideas to choosing the right business model, all the way to launching your business.
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