We live in a world that is developing at a pace not witnessed by our forefathers. The modern world has shrunk the space for traditional businesses because modern problems require modern solutions. Entrepreneurs are the ones who propose modern solutions by taking the risk of propelling new ideas and making profits out of them. So, the society in which we all live today is a product of the changes which entrepreneurs have made by far.
The categorization of the types of entrepreneurs is largely dependent on the niche in which someone plays a role in innovating. For example, someone may want to solve social problems as a social entrepreneur, while others may intend to initiate a venture which could be scaled later as scalable startup entrepreneurs.
In this article, the Marketing Tutor will explain to you a detailed analysis of ten different types of entrepreneurs.
Let us jump straight into it.
What is Entrepreneurship?
Before explaining the types, know what entrepreneurship is. Fundamentally, entrepreneurship is a skill to develop a business from scratch while considering all its uncertainties, to make a profit out of it.
It is a risk-taking approach to prosper in a forever demanding and dynamic global market. Anyone who can introduce innovative ideas and is smart enough to run a new business with minimal fear of failure can become an entrepreneur. The only aim, however, is profit-seeking. Entrepreneurship ranges from local, home-based businesses to global corporations.
But, all that glitter is not gold because over 19% of startups fail due to excessive competition, while another 18% fail due to mismanaged prices or costs. So, every entrepreneur may not be successful. But, some certain set of qualities can make an entrepreneur successful, which include the ability to take risks, visionary leadership, creativity, and business skills.
Types of Entrepreneurship
It’s important to know the minute differences among the types because it’s imperative for an entrepreneur to plan a venture accordingly. Each type of entrepreneur faces multiple challenges and difficulties.
However, success belongs to those who understand the nuances, make the right decisions, and solve problems efficiently. Each type of entrepreneurship is significantly different from the other. And each entrepreneur has a different tool to cope with the problems.
Similarly, the required skill set is different for each type too. A few types of entrepreneurship are discussed below:
In social entrepreneurship, the entrepreneurs use their products and services to solve social problems. This niche doesn’t intend to make huge sums of profits. Their goal is to make an enterprise that could do social good. They produce certain products and services which solve certain environmental and social problems.
Examples include; universities, banks, and enterprises that offer financial services in third-world nations. The famous social entrepreneurs are Scott Harrison, Bill Gates, and Bill Drayton.
This type of entrepreneurship, as the name suggests, focuses on innovation. If you have a creative idea to make new products or start a new business, you can become an innovative entrepreneur. This type of entrepreneurship demands a unique idea that can change the world or at least change something significant.
Anyone intending to jump into this niche must assess the current market situation deeply. Creative and unique ideas are a must for innovative entrepreneurship to succeed. Innovative entrepreneurs are often very enthusiastic. They tend to change the current status and extend the boundaries.
John Hanke, Andrew Rose, Bill Simons, and Walt Disney are a few well-known innovative entrepreneurs.
Small Business Entrepreneurship
Small business entrepreneurship limits itself to small companies or ventures. These entrepreneurs do not make big profits from their companies. The primary aim of small business entrepreneurs is to improve the lifestyle of their families. They neither intend to capture any funding nor are interested in expanding their businesses.
Small business entrepreneurs usually hire people or even their families inhabiting the same locality. Some examples of small business entrepreneurship are shopping stores, beauty salons, small grocery markets, local restaurants, and electricians.
The number of small businesses in the United States increased to 33.7 million in 2020, accounting for 99.9% of all businesses, which highlights the development of small business entrepreneurship.
Large Company Entrepreneurship
Large company entrepreneurship falls under the category of macro-level business. This type of entrepreneurship is unique because it includes purchasing small firms instead of starting a new one and introducing new products or enterprises to an existing market. They consist of a large team of executives.
These organizations regularly create new services and products based on customer preferences to meet market demand. When a company is making small profits, small business entrepreneurship can turn into large business entrepreneurship. Their focus is on the growth of business and the exploration of new markets. Examples of large company entrepreneurship are Microsoft, Google, and Disney.
Scalable Startup Entrepreneurship
Scalable startup entrepreneurs look into the gaps in the market and try to find solutions. Scalable companies focus more on developing repeatable and scalable business models.
The main target of scalable entrepreneurs is to expand their business and make massive profits. Scalable entrepreneurs know the ways to make long-term plans to gain profits and make their businesses grow rapidly.
Amazon, Apple, Uber, and social media applications are innovative, scalable entrepreneurs.
Hustler entrepreneurs are extremely passionate and put a lot of constant effort into running their businesses. They are highly motivated and courageous. They are determined to achieve their goal at any cost. If you can sell any product at any time and can calculate the potential of businesses, you can be a hustler entrepreneur.
Hustler Entrepreneurs are known for a unique quality, which is that they don’t give up easily and are willing to work through obstacles to accomplish their objectives. For example, a hustler is willing to make a lot of calls and emails to make one purchase.
Researcher entrepreneurs take a lot of time before starting any business. They focus on the facts and statistics. They study a lot about that product which they intend to introduce in the market. It leads them to higher chances of being successful.
The researcher entrepreneur has complete knowledge about the company and the products. They plan properly about everything, which reduces the risk of failure. Researcher entrepreneurship is a business concept that utilizes educational research and knows the tact to enhance scarce resources.
Some famous research entrepreneurs are Ben Franklin, Thomas Edison, and Marie Curie.
Buyer entrepreneurs do not start a new business or company. They invest in that business that is already well established and developed; they usually belong to an elite class.
Buyer entrepreneurs do not need to start from zero; they just invest money to make more money. Buyer entrepreneurs not only invest in the business but also act as active members of that company. They are directly and professionally linked with the company. It helps the enterprise, too, to flourish more.
Only those people can become buyer entrepreneurs who have enough wealth to buy a fully developed company. The chances of failure are minimal in this case.
Imitative entrepreneurs can be called copycats because they copy the ideas of other successful entrepreneurs who have minimal resources and can’t afford to take financial risks. They take others’ ideas and improve them by keeping in view their mistakes to run a profitable business.
Imitative entrepreneurs are willing to learn from the mistakes of others very actively. A combination of an innovator and a hustler makes an imitator. Imitators are very self-centered and strong individuals. Although they copy the ideas, they make them unique and creative in a way that chances of success increase significantly.
An intrapreneur is a person who thinks creatively and acts like an entrepreneur while performing within a company. Anyone falling in this category must be self-confident and active professional. Intrapreneurs help companies to grow and help develop individuals with innovative mindsets.
The greatest intrapreneurs in the world are Spencer Silver, who invented Post-It notes at 3M, and Steven Sasson, who invented the portable digital camera while working at Kodak. These inventions are created by a single individual but have given an entirely new outlook to the business world.
The dominance of a few capitalists is now in jeopardy because the modern world has given space to innovators and entrepreneurs to sell their services and products. There is no denial of the fact that entrepreneurs have changed the outlook of the world, as a few types explained in the article narrate the nuanced approaches each type has. All in all, entrepreneurship is the key to exploring the modern world with full potential.