Entrepreneurs are individuals who create business ventures and take financial risks to acquire profit. They play an essential role in any economy as they have the ideas to develop new products or services in the market entrepreneurs are seen to be great innovators. However, not all entrepreneurs are the same. Thus, we will provide you with the four types of entrepreneurs.
The common 4 types of entrepreneurs
Below are the four types of entrepreneurs.
1. The innovator entrepreneurs
Innovators are people who do what they love and have the best interest in things— also known as the “mad scientists. “Their methods, ideas, and impacts are based on experimenting. They find and search for ideas that are not likely in the market. In addition, they test them first before presenting their business ideas. Innovators seek deeper to produce products or services that never existed before.
An example of an innovator known for his work is Bill Gates, who focused on what was best for him. At an early age, he was interested in computers. Moreover, he worked with his childhood friend Paul G. Allen at Microsoft. They developed and refined their ideas in computers to produce extraordinary output for long years of experiments. Bill Gates is credited for creating the windows operating system, the most commonly used computer software for consumer electronics and personal computer today.
2. The builder entrepreneurs
Have you ever known a business superior that is talented in most ways and has a unique frame of preferences and remarkable personal traits? They belong to this type of entrepreneur who has sharp and expert in recruiting talented investors and customers. These people are work driven to generate multi-million companies. Suppose you have this personality trait, and passion might be you. Below is an example of a builder entrepreneur.
The Sloan brothers belong to building entrepreneurs. Jeff and Sloan’s brothers are entrepreneurialism experts. They create and give seminars to companies, seeking advice and guiding thousands of business owners. Bringing their life dream business into action, they started this concept of business when they created a device that prevents a car battery from dying called the Battery Bud. They also built a venture capital firm for technology businesses in 1995 called Sloan Ventures L.L.C. Way. Rich Sloan seemed natural in offering other entrepreneurs advice who hope to succeed. To reach out to people, In 2011, they built StartupNation, multimedia to provide education and inspirational advice to entrepreneurs who seek guidance on the right way to get loans and where to market their business ideas. They would also appear on radio stations and television shows.
3. Specialist entrepreneurs
One of the four types of entrepreneurs is the specialist. Specialists are the type of businessmen who examine or decide analytically and methodically. But they only specialized their careers in one industry. Examples of specialist entrepreneurs are lawyers, doctors, and accountants. Most of them are strict and perfectionists in their work as they don’t like troubles that can slow the system’s flow. Moreover, they measure their success based on their income.
4. The opportunist entrepreneurs
This could be different from the four types of entrepreneurs. Opportunists see business as a road to becoming wealthy. This type of entrepreneur is good at multitasking and can pick out financial opportunities. Moreover, they spot opportunities in daily struggles and use them as situational ideas to build a business. Examples of this situational yet succeeding business are the following.
He was working back then in his father’s company when his angry neighbor holding an empty cat litter tray knocked on their door to ask Ed for some sand to fill her cat’s litter. Ed offered one of his father’s products, an absorbent clay for factory floors, to get rid of her. Ed realizes that it could cost him a fortune. He offered to logical pet stores in five-pound bags he labeled in a grease pencil as, “Kitty Litter”. It was successful, so Ed set up a wholesaler to sell the products to supermarkets and pet stores. He decided to sell his company for $200 million after 45 years.
Fred invented the popsicle at a very young age, at 11 years old. Young Fred left the mixture of water and soda powder in a glass with a wooden string on their house porch overnight. It was a cold night. He found out in the morning that it had frozen. He decided to sell his neighborhood. It took him time to utilize his invention. In 1923, Frank patented his ice popsicle to Joe Lowe Corporation. He became a millionaire from the product, but later, he sold the company to Unilever for over $150 million.
The four types of entrepreneurship
As we have provided you with the four types of entrepreneurs, here are the four types of entrepreneurship.
1. Small business
It is any small business in which a single person operates as the sole owner. In the first place, it is an autonomous organization that contains less workforce and less capital. Most importantly, small business is flexible and can adapt quickly to changes, unlike large companies. They used the money to build a business from their pocket or loans.
2. Scalable startup
Its main goal is to be in a large market size. Expanding the business as fast could, as a result, at the same time, the return on the profit would double. This type of entrepreneurship requires human resources and a large number of investors. The products are persistent in sustaining profit stability for both company and investors.
One of the 4 types of entrepreneurship produces products and aims to earn a profit and positively benefit the environment, community, and social problems. Moreover, organizations that help fund the community and environment usually quote “positive impacts over money.”Examples of social entrepreneurship are the following.
Helpsy is an American textile collection company that reduces the entanglement of clothing waste. Clothes are gathered and dispensed to second-hand markets and thrift shops or can be recycled. The organization was first established and has removed millions of carbon dioxide emissions.
It is a phone application or organization that helps students to improve and motivates psychological well-being and educational improvements. Its main goal is to help create positive impacts; they believe students’ well-being is not just measured by academic success. You can download their application from the apple store.
It refers to a company that is an unbreakable life cycle type of entrepreneurship. The businesses that exist and have well-known brand names. In particular, It is not a type of business that builds a new one rather than creating a new product in addition to the company. Therefore, business owners attract customers with unique marketing strategies and products based on the trend, using the brand’s existing name.
Entrepreneurs have many things to consider in building a business. More importantly, we provided you with four types of entrepreneurs and four types of entrepreneurship. Hence, we hope we have provided you with the answers to your questions about the differences between each type of entrepreneur and entrepreneurship.