Entrepreneurs are people who turn ideas into reality. They are determined to create jobs and contribute to the economy. Different types of entrepreneurs tend to choose their path depending on their abilities, personality, and environment. Entrepreneurs can be categorized into various groups, and each of them runs their businesses with their own rules to attain success.
Based on Economic Development
Under this classification, we can characterize business visionaries as depicted underneath:
A. Business Entrepreneurs: They are the visionaries who consider or develop an idea and afterward establish a business to show their thought to the real world. They tap the whole factor of creation to build up another business opportunity. They may set up a significant venture or a limited-scale business. At the point when they build up independent company units, they are called private entrepreneurs.
B. Trading Entrepreneur: These, business people embrace exchanging ideas and are not worried about production.
C. Modern Entrepreneur: Industrial business visionary is a producer who distinguishes clients’ necessities and makes items or services available to customers.
As per the Use of Technology
The utilization of innovation in different areas of the public economy is fundamental for business development. We may comprehensively order these business people based on the utilization of innovation as follows:
Technical Entrepreneurs: These are crafts men with speciality in developing and improve quality of goods through his talent. The category of businesspersons does not engage more in sales but mostly concentrate on production. They raise the vital capital and utilize specialists in monetary, legitimate advertising, and different business zones. Their prosperity relies on how they start creating and on the acknowledgment of their items in the market.
Non-Technical Entrepreneur: They visionaries are individuals who are not worried about the specialized parts of the item or service they offer. They are concerned uniquely with creating alternative and limited-time procedures for their items or service.
Innovators: Innovators come up with a completely new idea for their business and strive to make it viable. They are highly committed, obsessive, and passionate because of their product and business idea’s uniqueness. Innovative entrepreneurs use product differentiation strategy in the market to stand out from the crowd. Innovators create their own rules, get praise for the business’s success, and face minimal competition in the market considering their product’s uniqueness. On the other hand, they often face resistance from shareholders, endure a long period before they gain success, and need a lot of financing to actualize their idea.
Imitators: Imitators copy other entrepreneur’s business ideas and improve on them. They put effort into improving a particular product to gain the upper hand in the market. Imitators tend to have a lot of self-confidence. Taking an existing idea and refining it into a better product can be a great way to start a business. Imitators enjoy the advantage of a less stressful start since they are improving an existing idea. They can easily benchmark their success from the original product and can learn to avoid mistakes made by the original owner. A challenge is that their product will always be compared to the original product, and they will always be playing catch-up with the original product.
Other Groups:
These entrepreneurs work in business circles and function that would fall in many categories they include:
Researcher Entrepreneur: Researchers always want to gather relevant information about a business idea before they can take a step. This type of entrepreneur believes in starting a business with high chances of success because they tend to put their work in detail. They take a lot of time before launching a product to the market because they require a deep understanding of their decisions. The advantages of researcher entrepreneurs are that they have detailed business plans and plan for any future contingencies. They will not start a business until they feel that they are adequately acquainted with the market. This helps minimize their chances of failing in business. This type of entrepreneur’s disadvantage is that they can hamper a business’s progress and always move slowly when taking a risk.
Buyer entrepreneurs has money and specialize in buying profitable businesses. One common thing about buyers is their wealth. Buyer entrepreneurs identify a business then assess its viability before they buy it. Once they acquire the business, they look for a suitable person to run and grow the business. Advantages of buyer entrepreneurs are buying an already established business that is less risky. The entrepreneur does not have to worry about innovation. They already have an already built market base for their product. This type of entrepreneur suffers from buying a business with problems that cannot be easily solved and paying high prices to acquire a good business.
Hustler entrepreneurs are always willing to work hard and maintain their constant effort. They always start small and work towards building a more significant business. They are work-oriented rather than capital-oriented. They never give up and are willing to do whatever it takes to achieve their goals. Advantages of hustler entrepreneurs are that they never get distracted by anything. They have a thick skin, see rejection and disappointment as a steppingstone, and are willing to outwork many. Their disadvantages include being prone to burnout; they make the rest of the team members weary, especially when the team members do not possess the same work ethic.
Small business entrepreneurs are interested in gaining modest profits so that they can support their lifestyle. They are not interested in the business’s growth often; people who run these businesses own them. Advantages of this venture include the business owner enjoys all profits and does not require a considerable amount of money to start. They are flexible, and the owner is the sole decision-maker. Disadvantages are the uncertainty when starting the business, financial commitment in the sense that business capital cannot be available for personal needs, and financial setback risk is hard to overcome.
Social entrepreneurship is geared to making the world a better place. Entrepreneurs want to solve social problems using their products and services. Most of the entrepreneurs start this as a non-profit organization.
However, there are two fundamentally different types of entrepreneurship. By size, we have small and medium enterprise entrepreneurship. These are fundamentally small companies that will stay small, and they may get around for a while. They are focused on local markets. They are often service-based businesses. They are servicing a local opportunity, but they are not something that is looking to go global. Such entrepreneurs may want to address opportunities within their surroundings. They are fundamentally essential companies to an economy in a region because they serve a need, but relative to how they are made up, their system shows a kind of linear growth. And at some point, it usually passed out in the market now.
By capital structure, Innovation-driven entrepreneurship, or innovation-driven enterprise, is looking for global markets or super-regional markets. Usually, it has one owner who maintains control. This type requires more cash. It may start showing exponential growth, so there is this negative cash at the beginning of operations.
