Types of Entrepreneurs: Which Are You?

Not every entrepreneur is a techie coding away in a garage on the next-greatest app. Entrepreneurship can take many forms and incorporates a variety of skill sets and traits. In the article below, you’ll learn more about what entrepreneurship really means and the different types of entrepreneurs out in the market today. You may be surprised to discover you’re already an entrepreneur and just didn’t realize it! 

Define entrepreneurship 

What does entrepreneurship really mean? Do you have to invent a brand new product? Do you have to be an expert in a particular field? The short answer: It depends! 

There are many different definitions of an entrepreneur, but a simple definition from Merriam–Webster calls an entrepreneur “one who organizes, manages and assumes the risks of a business or enterprise”. This can take many different forms, which we will discuss below. 

Why do people become entrepreneurs? 

There are many reasons people become entrepreneurs. Some discover a way to monetize their passion. Others might find a problem they really want to help solve. Some want the increased degree of freedom that comes with being their own boss. There are many different types of entrepreneurs and thus many different reasons why they embark on the challenging path of founding and managing an enterprise. 

As you read about the different types of entrepreneurs below, consider if your professional goals might incorporate some kind of entrepreneurial venture. 

Type #1: Builders & Scalable Startups

Builders are the ones you might typically think of as entrepreneurs. They are people with an idea who find solid talent and financial backing to take an idea from conception to scale in a few years time, often selling their ventures for millions of dollars in the process. They are usually people who can cast a vision and get others excited about their idea. They are people who can execute on that vision to turn it into a scalable, profitable business. Though most might envision this kind of entrepreneurial journey when thinking of entrepreneurship, this style of entrepreneur is less common than others. 

Type #2: Opportunists

Opportunists don’t always have the best idea in the room, but they certainly tend to have the best timing. They are people who can identify market opportunities as they become ripe and take advantage of them at the peak moments. They might meet a builder, for example, and come on board throughout the stages of initial growth, exiting once the startup has reached its peak. They are the most concerned with generating a profit through the business and are on the lookout for opportunities to invest, engage and create residual forms of income that will outlast their stay with the company. 

Type #3: Innovators

Innovators create and ideate. They are the people who connect old ideas and fashion them into products and services that are completely new. They might disrupt an industry with a brand new product or design a never-before-seen software to make the lives of specific customers simpler. They live within the realm of ideas, so launching and managing the day-to-day operations of a business may not be their strong suit. They may have forward thinking ideas for the next decade of growth and expansion, but often must rely on talented people to execute these ideas and make them a reality. 

Type #4: Specialists

Becoming a specialist can take years—decades, even—depending upon the level of skill and expertise. They are the people who have taken the time to become extremely knowledgeable and perhaps even reputable in their field. They might have attained their knowledge from school, concrete experience and/or other training. Specialists build businesses around their skills and develop solid reputations and relationships with clientele. You could think of a specialist as a CPA with an accounting practice, a well-known interior designer, a comedian, or others with specialized skills. Specialists take on the least amount of risk compared to other forms of entrepreneurship. 

Type #5: Intrapreneurs

Intrapreneurs are probably the least recognized, as they appear to have traditional employment. It’s not a spelling mistake—Intra-preneuers are people who exercise their entrepreneurial skills and mindsets within the context of a particular company. They are people who take existing products and services and create new and exciting opportunities for the business to pursue using company resources. They might identify a gap in the market with the target market they serve and come up with a way the company can address that gap with a new service, for example. Or perhaps they might find a way to improve upon the existing product offerings to expand the opportunities for the company. Intrapreneurs might not be as recognizable because they are not necessarily known as founders and may be at any level of the company. But they add value in new ways and manage new enterprises within the company ecosystem where they work, applying entrepreneurial mindsets all the way. 

Type #6: Social Entrepreneurs

Social entrepreneurs are most interested in solving human and community problems. They are people whose ventures may not increase profits but add value in new and exciting ways, often enriching the lives of others in some way. Social entrepreneurs can create movements, non-profit organizations, membership organizations and more. Their ventures may not turn a profit but contribute to solving social problems such as poverty or environmental concerns, and more. They might also focus on extremely local issues, such as a group that works to educate youth on local racial history, or perhaps a nonprofit that works with local businesses and adult education centers to train more lower-income earners in higher-wage STEM skills. They still face the challenge of a normal start up, such as funding, operations, and more. The difference is that their funding sources may be donations, grants and/or related business revenue. Social entrepreneurs create new energy around solving real-world problems, applying the mindsets and innovation of entrepreneurship to making their world a little bit better. 

Which Type are You? What if You don’t know? 

Which type of entrepreneurship resonates the most with you? Is there a style that seems to match your career goals more than another? Entrepreneurship in any form takes risk, perseverance and courage. It is not for everyone. But if you are interested in solving interesting problems and helping to better the lives of others, you might find entrepreneurship the place to start. It’s okay if you don’t know exactly what kind of venture you want to create. That’s why Spirit Box exists!

Conclusion & Call to Action

Spirit Box delivers real-world entrepreneurship experience to high school students before they even graduate. Not sure where you’d fit within a new business venture? No problem! Spirit Box creates opportunities for students to get hands-on learning in financial management, customer service, product development, marketing and more. Instead of thinking  your way to a decision (which may or may not be what you envisioned!), you can practice your way into testing different aspects of entrepreneurship while still in school. 

Sources:

https://www.investopedia.com/terms/e/entrepreneur.asp

https://cfe.umich.edu/4-types-of-entrepreneurship-which-one-is-right-for-you/