Entrepreneurs are some of the most vital parts of our economic society. They are individuals who want to create a substantial change in the world, following through on their passion. However, to be influential leaders and innovators, entrepreneurs need to have a specific skill set.
Their personalities may differ from one another, but their basic skills make them effective leaders. As there is a range of businesses and industries, there is a large pool of varied entrepreneurs of different kinds and interests.
The global pandemic has fueled the growth of entrepreneurship. It has not only started a boom in startups, more specifically technology startups, but it has also helped the number of new companies significantly surpass the indicators of last year and predictions of this year, 2021.
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Undoubtedly, the number of entrepreneurs in the pandemic is attributed to the number of workers who were laid off over the pandemic and who have taken the plunge in starting their own business. Thus, for example, there was a 39% increase in the number of registered companies in the UK by 30% and have grown in double-digit value since June.
Types of entrepreneurs
For many entrepreneurs, the process of becoming an entrepreneur consists of having an idea, developing it and launching it and then turning it into a small business. All individuals have a varying array of aspirations and visions concerning the type of business they want to create and the ethos behind it. In most cases, entrepreneurs typically operate their business based on their own personalities.
For example, Richard Branson understands the needs of his employees and enforces a ‘Duvet Day’ holiday during the year, which all employees are entitled to. Therefore, reflecting his skills and characteristics through the ethos of his business. The key focus for all entrepreneurs is to run a successful business. However, for some, profits are less important than their potential to provide a good service.
As with all businesses, each one has its own demands, and so each entrepreneur needs different resources to overcome their challenges. There is no doubt that most entrepreneurs go through similar challenges in unique ways. There are different types of entrepreneurs, and here’s a look at some.
Different types of entrepreneurs
Small businesses entrepreneurs
The majority of businesses today are considered small businesses, of course, apart from the major household brands. Those who are interested in becoming and being small business entrepreneurs are most likely to be those individuals who are looking for profit to help support their modest lifestyles and one which will help support their families.
These types of entrepreneurs are usually not seeking large-scale profits or venture capital funding which keeps them small. They are generally run by the entrepreneur themselves and usually hire local employees and/or family members. Most of the independent businesses found on local high streets consist of small business entrepreneurs.
Large company entrepreneurs
Large companies are primarily companies that have a finite amount of life cycles. Therefore, to sustain this type of business and increase innovation in the field of the business, the entrepreneur would need to be an advanced professional who has the knowledge and understanding of business that is required to obtain and maintain a business of its scale.
These entrepreneurs are often part of a large team of C-level executives and use the business insights to create new products based on consumers and their preferences to help meet market demands and help the business grow. When a company is rapidly growing, small business entrepreneurship can turn into large company entrepreneurship or can happen when a more prominent organisation acquires the smaller one.
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Scalable startup entrepreneurship
Scalability is when there is an opportunity for the business to make a difference on a large scale, and in some cases, this can mean tapping into global markets. Scalable entrepreneurs believe their company has a unique quality that can change the world. Most scalable startups often receive funding from venture capitalists and hire specialised employees.
Typically, scalable startups seek to fill gaps in the market and work to create solutions to help fill these gaps, creating solutions for problems. Unfortunately, this is also where most inventions and technology-focused startups begin with their sights set on rapid expansion and substantial profit returns.
Innovative entrepreneurs are those who are constantly coming up with ideas and making new inventions. In most cases, they take their ideas and apply them in an adaptable way where they produce products, turning them into business ventures. The outlook for these types of entrepreneurs is to help change the lives of consumers for the betterment of living.
Naturally, innovators and inventors are passionate about their idea, which is what gives them a high level of motivation. They continually look for ways that make their own product distinctly stand out from others on the market and constantly keep reinventing their designs and ideas as they go on, learning to better their products. A great example of this is Dyson. Dyson has been a well-known brand in the home cleaning/ vacuuming market for years and has now adapted its technology beyond home cleaning and now produces fans and hair curling equipment.
Hustler entrepreneurs are those who won’t stop at anything to get what they want. Instead, they will continually work hard and put constant effort into their business. Typically hustler entrepreneurs start small and work non stop with the aim to grow their business with the hard work they have put in rather than using capital to grow it.
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The motivation comes from the abundance of aspirations that they have with the willingness to do whatever it takes to get them where they desire to be and to achieve their goals. Hustles generally don’t give up easily and take their challenges head-on with a willingness to experience their challenges to get what they want with pride, blood, sweat and tears.
Some entrepreneurs are focused on solving social problems and creating products and services, helping to leverage and verify types of businesses on our market. An entrepreneur of this calibre will aim to make the world a better place through innovation and enterprise. This means, in most cases, they are not hell-bent on making big profits or wealth. Instead, these entrepreneurs aim to start not-for-profit organisations dedicated to working towards social good.
They are similar to small business entrepreneurs but work towards using their business, not for themselves but to make use of the product they sell to help charities and those who need it the most.
Not all entrepreneurs are inventors who can come up with an original design or product themselves, but some entrepreneurs do have ways of making already existing products better. Imitator entrepreneurship is when an entrepreneur has found a way of improving an already existing business idea that is on the market which has fueled the inspiration to come up with their own take on the product or service.
They look for ways of making already existing market products and services more profitable by changing them to fit the consumer’s needs more accurately in today’s world. Some of the products on the market that were designed and made many years ago may not be applicable in today’s market as technology has advanced. And so, imitator entrepreneurs are innovators and hustlers with the willingness to work hard and innovate an existing product they have copied from elsewhere. These entrepreneurs have a lot of self-confidence and determination and have agility which helps them learn from the mistakes of others.
Research entrepreneurs work in a slightly different and more cautious way to the other types of entrepreneurs who, in most cases, go out there to get what they want. For long periods of time, research entrepreneurs take their time when ordering to start a new business and use that time to conduct extensive amounts of research before offering the product. They take the time to look at industry trends which helps them create a projection of the success of their new startup before even starting.
They believe that doing this level of research will give them the proper preparation and information they need to provide them with a higher rate of success. Therefore, they take the time to fully understand every aspect of their business, providing them with in-depth knowledge of what they are doing the best way to go about it. Typically, due to their reach, they rely on the facts in front of them to make decisions and use data logic rather than their intuition.
Buyer entrepreneurs are generally more wealthy and use their wealth to give themselves opportunities by using it to fuel their business ventures. They specialise in having a knack for buying businesses that they think will be successful. Their wealth is what ultimately gives them the upper hand when it comes to entrepreneurship.
Once they have brought the business, they make the changes they want to implement, such as management style or structural changes. Although this means they wouldn’t have started the business themselves like most other entrepreneurs, they use their wealth to buy already booming brands or brands that have fallen to help pick them up again and turn them into something. They aim to use their knowledge and grow the business they acquire to expand profits. In a way, this type of entrepreneurship is less risky because they are buying already well-established companies.
Different ways of thinking
Some theorists have categorised entrepreneurship into three different ways of thinking. The way an entrepreneur thinks is one of the significant factors contributing to how successful they will be. As we have explored above, some have motivation, others have confidence, and others believe in actual hard work.
Empirical entrepreneurship is the more classical entrepreneurs who follow and are guided by the rule of thumb and rarely introduce anything innovative, radical or revolutionary into their way of thinking and doing; they like to play things safe and follow the traditional practices of entrepreneurship.
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Rational entrepreneurs have a wealth of information available. They take time to seek this information which helps give them insight and awareness about the business environment they are in. they are more open to introducing modifications where necessary to match the economic conditions to be able to prevail.
Lastly, some cognitive entrepreneurs are quite sophisticated in their way of doing and thinking. Cognitive entrepreneurs take the time to seek expert help, opinions and advice. Taking heed of the advice, they act accordingly by introducing changes whenever necessary to their businesses. In most cases, they seem to be more at risk and like to take different approaches to things in order to help push their business forward. As a result, their ways can seem more unconventional.
Categories of entrepreneurs
As discussed earlier, the array of industries and range of businesses available today shows the wide variety of spaces new entrepreneurs can move into. In addition, the categories help entrepreneurs streamline their business and values to suit their target markets better. Here is a look at the different types of entrepreneurs according to categories.
Industrial entrepreneurs are those most associated with being involved in manufacturing and industrial activities. These entrepreneurs may be interested in a range of different scale businesses from large, medium and small businesses. They have an excellent working knowledge of their industries and the working of the manufacturing process, which allow them to make money and scale their business continually. We don’t hear much about these types of entrepreneurs but are the backbone of society, creating goods that we later buy and use from local supermarkets.
Trading entrepreneurs are most associated with only being interested in trading activities. This means they have no interest in engaging themselves in manufacturing work and primarily undertake wholesale or retail trading activities. Trading has become one of the easiest ways of becoming an entrepreneur as it doesn’t involve much commitment from entrepreneurs.
Corporate entrepreneurs are those that are some of the most common. They promote and establish corporate companies through their working knowledge of business and are responsible for some of the most well-known brands we know today. They are successful, and being able to initiate and run corporate companies have the business acumen to scale businesses and turn them into highly profitable organisations without manufacturing or trading. They are popular for tech companies as they are purely office-based.
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Technical entrepreneurs have a vast knowledge of the technological world and train and are well versed in it. They use their technical abilities and skill in being able to establish manufacturing units and improve the manufacturing process with the latest level of technology and engineering, much like Elon Musk. They are able to think of concepts that not many others would be able to put to work with old technology to be able to create something entirely new. As a result, they have significant influence over their peers and a sound understanding of the technology they are working with, which makes their job easier.
Motivation can be one of the hardest things to keep up with when being an entrepreneur. The number of setbacks and challenges can really take a toll on how the entrepreneur feels and how the business moves forward. Entrepreneurs all come with different motivational levels, and here’s a look at some of them.
Pure entrepreneurs are most likely to be motivated and guided by the motive of profit. That is all their eyes are set on. These economic goals and aspirations where they want their business to be are what drives them to work hard and take on business activities in the first place. T6hey have conscience and faith in their own performance because they think what they put in is what they will get out.
Induced entrepreneurs are induced to go forward and pursue entrepreneurial opportunities. They are arranged for the government and businesses that influence people to undertake entrepreneurial activities by providing incentives, tax exemptions, subsidies, technical and financial assistance to induce people to become entrepreneurs. These skills and encouragement are used to continually create a pool of entrepreneurs with every generation coming to help keep economies and entrepreneurial spirit alive and thriving. An excellent example of this so popular television program ‘The Apprentice’, which induces those with a business to come forward with the change to work with one of the wealthiest businessmen.
Spontaneous entrepreneurs have the urge to become entrepreneurs with a passion for setting up their own businesses. In most cases, some entrepreneurs are not born into wealth or have an idea, but they have a way to be able to prove themselves or make something of themselves. So they go along the route of pursuing the journey of becoming entrepreneurs.
Becoming an entrepreneur
For many people, becoming an entrepreneur is one of the most exciting goals. Wanting to be your own boss is the ultimate career goal for some, and although it sounds exciting, it can be difficult and does come with its challenges. In most cases, entrepreneurs are some of the most anxious people you will ever meet as they experience stress on a day-to-day basis. However, starting a business can be one of the most rewarding, iterating and exhilarating opportunities, providing one of the most significant learning curves in life.
All successful businesses begin with an idea which is what the company is then built upon. Next, entrepreneurs have to consider how their service or product can be profitable and how it provides a solution to a problem that consumers are willing to pay for to be alleviated. As we have discussed earlier, many entrepreneurs are inspired by other or emerging startups, which can be a great place to start. However, it is also essential to be able to identify trends that are able to future proof a business given its longevity in a changing climate.
Once the vision is set, it’s also vital to be able to split a new business into a category and industry. There are an array of industries and ones which overlap themselves too, which makes it essential to study markets and see what fits best. Once this is accomplished, the business will be able to fill an underestimated gap in the market which hasn’t been done before.
However, one of the most significant parts of a successful business is to be able to make a product or service that is competitive for the consumer and one which can be created cheaper than the going rate. To be able to produce a portfolio of products more affordable than competitors in the same market will give any business a better chance at making a profit quicker.
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There is no doubt that there is a wide variety of entrepreneurs and each of whom has its own set of skills and characteristics, which is what makes businesses so different from each other today. Moreover, in today’s industry, many mentors can help new entrepreneurs with their visions helping to scale up and create a successful business with the likes of Jeff Bezos and Bill Gates.
These figures and many others like them are one of the most integral parts of becoming an entrepreneur. Having a support network can help new entrepreneurs learn from the mistakes of other entrepreneurs, especially those in the same line of business. One of the most considerable skills as an entrepreneur is to be able to learn what coaches and mentors say about their journey and adapt that into there to be able to accelerate their business faster without making the same mistakes.
Sometimes it’s easier said than done but having a mentor can help entrepreneurs past blind spots, providing them with the benefit of learning from their knowledge and expertise, and so building a support network is key. Financial resources are also important and need to be in high consideration when contemplating starting a new business venture as many entrepreneurs fail in their first few years of business due to the detailed concentration of their financial portfolio.