The 9 types of entrepreneurship
Though entrepreneurship is the overall process of developing, launching and running a business, there are many different types of entrepreneurship. That is because people have different aspirations and visions for the kind of businesses they want to create. Let us discuss together the 9 most common types of entrepreneurship.
Small business entrepreneurship
Small business entrepreneurship is a business that is privately owned and operated. People interested in this type of entrepreneurship usually make enough profit to support their family and a modest lifestyle. They typically hire local employees and family members. Some examples of businesses in this category are local grocery stores, hairdressers, boutiques, consultants, etc.
Large company entrepreneurship
When a company has a finite number of life cycles, it is considered a large company entrepreneurship. This type of entrepreneurship is for advanced professionals who know how to sustain innovation and are often part of a large team of C-level executives. Large companies often create new products and services based on consumer preferences to meet market demand. Companies such as Google, Microsoft and Samsung are examples of this kind of entrepreneurship.
Scalable startup entrepreneurship
Scalable startups look for things that are missing in the market and create solutions specifically for them. They often receive funding from venture capitalists and hire specialised employees. Many of these businesses are technology-focused and seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber.
This category of entrepreneurship is for entrepreneurs who aim to solve social problems with their products and services. Their main goal is to make a positive change in the world and they do not work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward the social good.
Innovative entrepreneurs are people who constantly have new ideas and inventions that they turn into business ventures. Their aim is to change the way people live for the better, making their products and services stand out from the rest on the market. Innovators tend to be very motivated and passionate people, like Steve Jobs and Bill Gates.
People who are willing to work hard and put in a constant effort are considered hustler entrepreneurs. As is often the case, they start small and work towards growing a bigger business with hard work rather than capital. For example, someone who is a hustler is willing to cold call many people in order to make just one sale.
Imitators are entrepreneurs who use others' business ideas as inspiration, but work to improve them. They are a combination between an innovator and a hustler and are looking to make certain products and services better and more profitable. People who are imitators have a lot of self-confidence and determination and can learn from others’ mistakes when starting their own business.
Researchers take their time when starting their own business. They do as much research as possible before offering a product or a service. That is because they believe that with the right preparation and information, they have a higher chance of being successful. Research entrepreneurship relies on facts, data and logic rather than intuition.
A buyer is a type of entrepreneur who uses their wealth to fuel their business ventures. They usually focus on using their fortunes to buy businesses that they think will be successful. They thus identify promising businesses and look to acquire them. Their goal is to grow these businesses and expand their profits. This kind of entrepreneurship involves less risk, as entrepreneurs only purchase already well-established companies.
Thanks for taking the time to read our blog post on the 9 types of entrepreneurship. If you are thinking about studying in Germany, PFH offers a Master’s Degree in General Management in which you can take the cross-cutting topic of corporate management with different variants, including accounting. If, however, you are interested in becoming even more international, we also offer dual degree programmes, where you would study partly in London, Bordeaux or even Australia and receive two degrees.
At PFH we make sure you receive a high-quality education while making the most out of your study abroad experience!