Entrepreneurs turn Idea into Reality. They choose their own path for this. They create jobs and contribute to the economy. According to their chosen path and manner of working, types of Risk and how they handle it, there are categories of Entrepreneurs :
- Small business entrepreneurship
- Large company entrepreneurship
- Scalable startup entrepreneurship
- Social entrepreneurship
In terms of finance, marketing, people and even managing themselves, most of the entrepreneurs go through very similar struggles but they have their own rules for success in business and in handling and responding of these struggles.
Innovators are the types of entrepreneurs who come up with completely new ideas and turn them into viable businesses. Like Mark Zukerberg for facebook.
In most cases, these entrepreneurs change the way people think about and do things. Such entrepreneurs tend to be extremely passionate and obsessive, deriving their motivation from the unique nature of their business idea.
Innovative entrepreneurs also find new ways to market their products by choosing product differentiation strategies that make their company stand out from the crowd. And sometimes it is not just standing out from the crowd but actually creating a new crowd.
Advantages of Being An Innovate Entrepreneur:
- Get all the glory for the success of the business
- Create the rules
- Face minimal competition during the initial days
Disadvantages of Being An Innovate Entrepreneur:
- You will need a lot of capital to bring a new idea to life
- Often face resistance from shareholders
- The timeframe for success is longer
2. The Hustler Entrepreneur
Unlike innovators whose vision is the gas in their engine, hustlers just work harder and are willing to get their hands dirty. Hustlers often start small and think about effort – as opposed to raising capital to grow their businesses. These types of entrepreneurs focus on starting small with the goal of becoming bigger in the future.
Hustlers are motivated by their dreams and will work extremely hard to achieve them. They tend to be very focused and will get rid of all forms of distractions, favoring risks over short-term comfort.
A perfect example of a hustler is Mark Cuban. He started in business very young selling trash bags, newspapers and even postage stamps and this hustle later created a goldmine which was acquired by internet giant Yahoo!
Advantages of Being A Hustler
- They will outwork most
- Tend to have thick skin – they don’t give up easily
- See disappointment and rejection as just a step in the process
Disadvantages of Being A Hustler
- Usually prone to burn out
- Wear out their team members who don’t have the same work ethic
- Often don’t see the value of raising capital as opposed to just working harder
Even though many hustlers never give up, a lot of them are willing to try anything to succeed which unfortunately means that they have a lot of hits and misses. Achieving their dreams takes a lot longer than most other types of entrepreneurs.
Imitators are the types of entrepreneurs who copy certain business ideas and improve upon them. They are always looking for ways to make a particular product better so as to gain an upper hand in the market.
Imitators are part innovators and part hustlers who don’t stick to the terms set by other people and have a lot of self-confidence.
Advantages of Imitators
- Refining a business idea is easier and less stressful
- You can easily benchmark your performance with the original idea
- Can learn and avoid mistakes that were made by the originator
Disadvantages of Imitators
- Their ideas are always compared to the original idea
- Always have to play catch-up
Taking an existing idea and refining and improving it can be a great way to develop a business. It certainly does not have as much risk as the innovator but it might just not be as sexy.
Even after having an idea, researchers will take their time to gather all the relevant information about it. To them, failure is not an option because they have analyzed the idea from all angles.
Researcher entrepreneurs usually believe in starting a business that has high chances of succeeding because they have put in detailed work to understand all aspects.
As a result, these types of entrepreneurs usually take a lot of time to launch products to make decisions because they need the foundation of deep understanding. These entrepreneurs rely much more on data and facts than instincts and intuition.
For a researcher, there should be no room for making mistakes.
Advantages of Being a Researcher Entrepreneur
- Plan for as many contingencies as possible
- Write detailed, well-thought-out business and financial plans
- Focus on data and information rather than gut feeling
- Won’t start unless they feel like they know the market
- Will minimize the chances of failing in the business
Disadvantages of Being a Researcher Entrepreneur
- Typically moves slow
- Doesn’t like risk and that can hamper progress in a new venture
Even though these types of entrepreneurs spend a lot of time researching and digging into the data to ensure the success of their business, they can fall into the habit of obsessing over the numbers and focusing less on the running of the business.
One thing that defines buyers is their wealth. These types of entrepreneurs have the money and specialize in buying promising businesses.
Buyer entrepreneurs will identify a business and assess its viability, proceed to acquire it and find the most suitable person to run and grow it.
Advantages of being a Buyer
- Buying an already established venture is less risky
- Doesn’t have to worry so much about innovation
- Can focus on building on something that has already gone through building a foundation
- Already has a market for your products
Disadvantages of being a Buyer
- Usually pays a high price for good businesses
- Will face the risk of buying businesses that have problems that you think you can turn around
6.Small Business Entrepreneurship
A majority of businesses are small businesses. People interested in small business entrepreneurship are most likely to make a profit that supports their family and a modest lifestyle. They aren’t seeking large-scale profits or venture capital funding. Small business entrepreneurship is often when a person owns and runs their own business. They typically hire local employees and family members. Local grocery stores, hairdressers, small boutiques, consultants and plumbers are a part of this category of entrepreneurship.
7.Large Business Entrepreneurship
Large company entrepreneurship is when a company has a finite amount of life cycles. This type of entrepreneurship is for an advanced professional who knows how to sustain innovation. They are often a part of a large team of C-level executives. Large companies often create new services and products based on consumer preferences to meet market demand. Small business entrepreneurship can turn into large company entrepreneurship when the company rapidly grows. This can also happen when a large company acquires them. Companies such as Microsoft, Google and Disney are examples of this kind of entrepreneurship.
8. Scalable startup entrepreneurship
This kind of entrepreneurship is when entrepreneurs believe that their company can change the world. They often receive funding from venture capitalists and hire specialized employees. Scalable startups look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber.
9. Social entrepreneurship
An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don’t work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good.