10 different types of entrepreneurship

It takes zeal, determination, and desire to become an entrepreneur. Whether you are just starting out and opening a business, or developing an existing one, understanding the different types of entrepreneurship is an important part of your journey to success and business ownership.10 different types of entrepreneurship

By focusing on the unique differences of entrepreneurship, you’ll be able to address your business’ challenges with a deeper awareness of how you should handle them and what types of resources you’ll need. From picking which type of venture you want to develop, to creating a business website that targets the right audience, there are many steps you’ll need to take to make money as an entrepreneur.10 different types of entrepreneurship

What are types of entrepreneurship?

While the basic principles of entrepreneurship are the same—planning, starting and operating a business—the distinct nuances and skills needed vary depending on the type of business you plan to start. Becoming an entrepreneur requires the ability to define these differences, and pinpoint the unique elements that are needed.

In the field of economics, an entrepreneur is defined as a person or entity that has the ability to convert discoveries or technology into physical goods and services. This concept of entrepreneurship encompasses actions undertaken by both established enterprises and emerging businesses.10 different types of entrepreneurship

Traditionally, there have been four primary categories of entrepreneurship: social entrepreneurs, major firms, scalable startups, and small businesses. These models cover the fundamentals of starting business ownership and focus more on the company itself, rather than the qualities of the entrepreneur. However, just as the world continues to change, so do businesses. This means new opportunities for risk-taking and innovative game changers to pave the way in diverse entrepreneurial ways.10 different types of entrepreneurship

With this in mind, even though there are quite a few similarities when it comes to the challenges that all business owners will face, there are certain types of entrepreneurship defined by the skills, characteristics and personality traits of the entrepreneur. At the end of the day, it is the way you choose to run your business that makes them differ from one another.10 different types of entrepreneurship

10 most common types of entrepreneurship

1. Small businesses entrepreneurship

2. Scalable startup entrepreneurship

3. Intrapreneurship

4. Large company entrepreneurship

5. Imitative entrepreneurship

6. Innovative entrepreneurship

7. Buyer entrepreneurship

8. Researcher entrepreneurship

9. Hustler entrepreneurship

10. Social entrepreneurship

01. Small business entrepreneurship

This style of entrepreneurship encompasses any small business founded by one individual with no intention of growing or franchising. For example, if you were planning to open a nail salon, a general store or a taco truck your goal would be to launch a single store. You’d likely plan on hiring local employees or even family members to get your business off the ground and would need to invest your resources directly into the business.10 different types of entrepreneurship

Since you only earn from this kind of business if your firm does, you must possess a strong sense of responsibility, drive, and commitment to your mission. In 2020, there were 33.7 million small businesses in the United States, accounting for 99.9% of companies, proving that small business entrepreneurship is on the rise.

02. Scalable startup entrepreneurship

Scalable startups, founded on the vision of transforming the world, concentrate on developing a repeatable and scalable business model (more revenues with more resources). From the get go, this style of entrepreneurship begins with the hope of rapid expansion and big profit returns. Many startups have a similar ‘garage to riches’ narrative, beginning with a simple idea that is brought to life by the tenacity of entrepreneurs with the support of investors. Amazon, Google and Apple are all examples of trailblazing startups that have changed the world.

The quantity of money you have (which is frequently backed by venture capital investors) and the human resources supporting your company are critical components of a successful startup. The key to starting this type of business model is knowing the long-term plans for profitability and the ways in which your company will grow, both for the sake of your investors, and your own.10 different types of entrepreneurship

03. Intrapreneurship 

Unlike an entrepreneur, who is also the founder, designer and manager of a business, an intrapreneur is a self-motivated, and action-oriented employee who thinks out of the box and works as an entrepreneur within a company. Intrapreneurship is a way that companies can support and encourage employees that have entrepreneurial spirit.10 different types of entrepreneurship

For instance, Shutterstock holds an annual 24-hour hackathon where staff members are free to explore creative ideas that help advance the business. Another example of an intrapreneurial innovation is Facebook’s ‘Like’ button which was also created in a similar hackathon event, which is now an integral part of the brand. 10 different types of entrepreneurship

04. Large company entrepreneurship

Large company entrepreneurship refers to companies like Disney, Google, Toyota, and Microsoft who have finite life cycles, as in, they keep innovating and offering consumers new products that are variants around their core product-line.10 different types of entrepreneurship

A distinguishing feature of this type of entrepreneurship is that it is not starting a new business, rather creating new products or subsidiaries within an existing company, or acquiring smaller businesses (like when Facebook bought Instagram and WhatsApp). More specifically, these divisions are focused on reaching new markets, expanding the customer base and growing the business – sometimes via new company sites.

Another component of large company entrepreneurship is a commitment to building company culture, ensuring that as a company expands all employees are a part of the growth.10 different types of entrepreneurship

05. Imitative entrepreneurship

Imitation is the best form of flattery, and an imitative entrepreneur (also referred to as an adoptive entrepreneur) is one who copies what successful innovative entrepreneurs have previously done, most often with lower financial risks and limited resources.10 different types of entrepreneurship

When you do imitative entrepreneurship, you are essentially taking a concept and refining it.By taking note of others’ mistakes and finding creative ways to make a business better, you can become a lucrative entrepreneur.10 different types of entrepreneurship

06. Innovative entrepreneurship

Innovative entrepreneurs, as the name suggests, are constantly trying to come up with the next big thing. If you have groundbreaking ideas of how to start a business or specific services and products that can become business ventures, you might be an innovative entrepreneur.10 different types of entrepreneurship

As an innovator, you know you must always be aware of the current market conditions to find original and creative ways to disrupt them. Innovation refers not only to product ideas but also the ways in which business is conducted. Innovative entrepreneurship is all changing the status quo and pushing boundaries.

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07. Buyer entrepreneurship

You’ve probably heard the saying “money makes money”, and for a buyer entrepreneur this definitely rings true. Instead of figuring out how to raise money for a business, a buyer entrepreneur purchases either a developing or well-established company and helps them thrive.10 different types of entrepreneurship

In contrast to investors, a buyer entrepreneur stays actively involved in the company, contributing both money and human support to the investment’s growth. It is not uncommon for buyer entrepreneurs to hand off their leadership to someone else at some point, but they always maintain an active part in the businesses they purchase.10 different types of entrepreneurship

08. Researcher entrepreneurship

Researcher entrepreneurs rely on facts, data and the belief that with the right preparation and knowledge will be more likely to succeed. If this sounds like you, this is exactly what research entrepreneurship is all about—a great business idea paired with academic research, and an understanding of how to stretch limited resources to the max.10 different types of entrepreneurship

Take a look at Nobel Prize winner and physicist, Theodor Hänsch, a researcher entrepreneur who co-founded MenloSystems, taking his winning optical frequency comb technology and using it to make products for the market.10 different types of entrepreneurship

09. Hustler entrepreneurship

Don’t let the name throw you off, a hustler in business refers to a self-starter, a highly motivated person who is driven to succeed. This type of entrepreneurship style grows directly from the entrepreneur, who must be confident, fearless and have rigorous work ethic.10 different types of entrepreneurship

If you are the type of person who can sell anything to anyone, is always aware of the next big thing and is able to recognize opportunities, you might just be a hustler after all.10 different types of entrepreneurship

10. Social Entrepreneurship

Social entrepreneurs are innovators whose main goal is to create products and services that both benefit the world, and make money. Social entrepreneurship relates to nonprofit, for-profit, or hybrid companies that are committed to social or environmental change. Some examples include educational programs, microfinance institutions, and companies that provide banking services in undeveloped countries.

Toms shoes was a pioneer of social entrepreneurship, starting in 2006 offering a one-for-one sales model that gave a pair of shoes to a child in need for every pair of shoes sold. What separates social entrepreneurship from other types is the measure of success, in that the goal is not focused solely on financial gain but also on the social impact.10 different types of entrepreneurship

Types of entrepreneurship FAQ