There are many types of entrepreneurs in Canada, and we like to think of it as a spectrum of activity. Are you already in business and curious what other entrepreneurs like you are up to? Are you thinking of getting into business and wondering what your options are? These are six of the more common types of entrepreneurs – which one (or combination of several) are you?
Home-based entrepreneurs are usually self-employed, working by themselves or with only a few employees. As the name suggests, their businesses are based out of their own home or in a home office. These entrepreneurs love flexibility and autonomy, and having the freedom to do things like arrange a child’s dentist appointment or take the family dog for a walk at lunchtime. These companies typically don’t have a storefront, street advertising signs or customer parking.
Examples of home-based businesses: Bookkeepers, event planners, and freelance writers
Online Stores and Marketplaces
Online or e-commerce entrepreneurs run their business online. They use IT and communication technologies to support their business activities. Their businesses can provide a service or sell a product through a website.
Examples of internet-based businesses: Etsy, eBay, and travel bloggers
Lifestyle entrepreneurs create a business to further 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. Their businesses simply help their founders support a lifestyle they enjoy. These businesses can be run full- or part-time. Lifestyle freedom entrepreneurs are usually not concerned about high growth, and usually have only a few employees.
Examples of lifestyle businesses: Starting a home-based business to be closer to family, or building a coaching business off an existing photography skill
Mountain climber entrepreneurs usually run large companies employing somewhere between 20 and 500 people. These companies are often very fast-paced and experience high growth rates. These ventures 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 high potential companies.
Examples of mountain climber businesses: Quickly growing technology companies and large internet technology businesses
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.
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 entrepreneurship typically comes from non-profit organizations, foundations, governments and non-governmental organizations.
Examples of social entrepreneur businesses: KickStart International, or a business that tutors at-risk children.
What type are you? GoForth’s leading Canadian small business training video program has useful tools to help all entrepreneurs succeed!