Types of Entrepreneurship Explained
Tech companies, restaurant owners, hairdressers, consultants, boutique retail stores. All of these can be considered entrepreneurial ventures. In fact, there are nearly a dozen different types of entrepreneurship and the practice exists in every industry. This article focuses on five of the most common forms of entrepreneurship and gives examples of each.
Small Business Entrepreneurship:
Small businesses entrepreneurship refers to small businesses such as local grocery stores, hairdressers, restaurants, boutique shops, and other similar local businesses. Small business entrepreneurs must earn a profit, but are usually not in it to “get rich.” Small businesses entrepreneurs also usually hire locals to help run their businesses. Picture your neighborhood bar and grill or local market.
Scalable Startup Entrepreneurship:
When you think of a “startup,” you usually think about scalable startup businesses. This type of entrepreneurship consists of businesses that seek to change the world with a new idea that doesn’t already exist. Examples of scalable startup entrepreneurship include high-tech companies such as Facebook and Twitter, which created new (mostly) products to fill a massive market need.
I discuss social entrepreneurship in my article titled, “What is Social Entrepreneurship?” Briefly, though, social entrepreneurship refers to the act of setting up a cause and/or project, with the goal of solving an issue in society. Nonprofit organizations are good examples of social entrepreneurship, seeing as they aim to improve society rather than make money.
Innovative entrepreneurship refers to people inventing a new idea or product and starting a business venture around that invention. Examples of innovative entrepreneurs include Bill Gates and Steve Jobs, both of whom invented computer technology that helped change the world.
Imitator entrepreneurship refers to people starting business ventures based on existing ideas or products. They take something that is already on the market and make it better. Don’t think that imitator entrepreneurs are lazy, though. They may start by copying an existing idea, but they work tirelessly to improve that idea and make it more market-friendly. This is one of the most common forms of entrepreneurship, seeing as most companies form to try to make something that already exists better.
About the Author -- Joshua Ferdman
Joshua Ferdman is a Los Angeles-based entrepreneur, specializing in technology, finance, and real estate. He started working in the mortgage business at the age of 16 and hasn't stopped since. Joshua always said that the most important job you can ever have is phone sales. He writes about entrepreneurship, leadership, and succeeding in the professional world.