Just like there isn’t one type of business, there isn’t just one type of entrepreneur. Entrepreneurship can be experienced in a range of different ways. Here are seven of the most common types of entrepreneurs.
Home-based entrepreneurs are self-employed, working alone or with just a few employees. As you can probably guess, the business is based out of their own home or in a home office. Flexibility and autonomy are what these business owners crave. Also, the freedom to do things like arrange a child’s dentist appointment or run errands at lunchtime is a must. These businesses typically don’t have a storefront, street advertising signs or customer parking. Examples of home-based businesses include bookkeepers, photographers and graphic designers.
Internet-based entrepreneurs run their business online and use information and communication technologies to support business activities. The business can provide a service or sell a product through a website. Some internet-based businesses can be home-based businesses too. Examples of internet-based businesses include Amazon.com, eBay and iTunes.
Lifestyle entrepreneurs create a business to further their own personal goals instead of make a lot of money. These entrepreneurs may pursue a cash-generating hobby during their spare time or create a business around one of their interests. These businesses usually aren’t intended to be high growth, and usually have few employees. Examples of lifestyle businesses include a secondhand book store, or a small market stall selling homemade baked goods.
High potential entrepreneurs
High potential entrepreneurs usually run large companies employing somewhere between 20 and 500 people. These companies are often very fast-paced and experience high growth rates. They often develop and produce the latest technologies and innovations. Most start-up activity involving high potential entrepreneurs is technology and internet related. Access to funding is often easier for these companies. Examples of high potential businesses include quickly-growing technology companies and large internet technology businesses.
Franchise format entrepreneurs
Franchise format entrepreneurs open a franchise or chain in the local business area, complete with support and direction from the franchisor. These entrepreneurs stay within the lines and structures of their franchise and appreciate the lower risk that follows. They are not concerned with the lack of freedom and autonomy that comes with owning a franchised business. There are a wide variety of franchises ranging from service franchising like Century 21 real estate, product franchising like Goodyear Tire Stores and business format franchising like Tim Hortons.
Venture capital entrepreneurs
Venture capitalists invest in ventures, through managerial and technical expertise as well as with actual money. Venture capitalists are very selective about which companies to invest in, and as much as 98% of firms seeking funds are rejected. Aside from individual angels and venture capitalists, venture capital firms also exist. Examples of venture capitalists can be seen on CBC’s Dragons’ Den, as well as in large companies like those in Silicon Valley.
A social entrepreneur measures success by the impact that he or she has on society. Highly passionate, the greater good of the community is their primary interest and they create a business to provide solutions to social issues. These entrepreneurs are also called non-profit or philanthropist entrepreneurs. Funding for social entrepreneurs typically comes from non-profit organizations, foundations, governments and non-governmental organizations. Examples include KickStart international and the Grameen Bank.