Entrepreneurship is the capability to create, innovate, develop, organise, and scale an idea. At the same time, it solves pressing problems for consumers and society.
To become a successful entrepreneur, one should learn and develop entrepreneurship skills.
Let’s learn more about who is an entrepreneur and different types of entrepreneurship.
A person who starts a business venture and runs it is an entrepreneur.
If the business is a tree, then the entrepreneur is the root.
It is this person who creates the business plan, identifies the problems of the consumer and the society, finds solutions, develops the needed skills, builds a network and keeps scaling the business.
Not all entrepreneurs build the next Apple or Amazon. Some run cosy neighbourhood cafés, while others franchise a McDonald’s.
There are many types of entrepreneurship for every kind of entrepreneur and the problem they choose to solve.
I’ve categorized some significant types in this blog based on these five factors.
This type of entrepreneur loves running their own independent business without pursuing global domination. Local stores, bakeries, salons, and service providers fall under this category.
The goal is sustainability rather than massive scaling.
An example of this type is a family-owned coffee shop that has served the same community for years. There is no aggressive expansion, just excellent service and loyal customers!
These entrepreneurs think big from day one. They start small but envision creating a business that scales massively.
Solving problems at a large scale is their primary goal.
Airbnb started with a simple idea… They began by renting out an air mattress but scaled into a global platform, disrupting the hospitality industry.
Big companies need to stay relevant by launching new products and services. This is where large business entrepreneurship comes in.
These entrepreneurs innovate within established corporations to keep up with market changes.
Google started with “search” but didn’t stop there. It launched Gmail, Android, and even self-driving cars (Waymo) to stay relevant.
Instead of starting from scratch, franchise entrepreneurs buy an existing, successful business model.
They get the brand, training, and system in place. They just need to execute well.
For example, it’s owning a Domino’s Pizza outlet. You don’t create a new pizza brand. Instead, you buy one that’s already proven and follow the system.
These entrepreneurs focus on heavy industries, building factories, and large-scale production.
They create raw materials or finished products for other businesses, shaping the supply chain of entire industries.
Reliance Industries started as a textile manufacturer but expanded into petrochemicals, telecom, and more, becoming an industrial giant.
These entrepreneurs create something entirely new that has never existed or been done in the same way. This can be a product, service, or business model.
They focus on originality, solving problems that others haven’t explored yet.
This type of entrepreneurship often requires high investment in R&D and a strong ability to take risks.
Elon Musk’s Tesla didn’t just make electric cars. It made them desirable, changing how the world sees EVs (Electric Vehicles).
Not everyone needs to reinvent the wheel! Imitative entrepreneurs observe successful businesses and bring similar models to different markets.
The key here is localisation.
They adapt proven concepts to suit a new audience or refine them to provide better value.
Ola in India took inspiration from Uber but localised it by allowing cash payments, auto-rickshaw bookings, and city-specific features.
Buyer entrepreneurs don’t start businesses from scratch. They acquire existing businesses and scale them up.
It’s something similar to franchise entrepreneurship.
Some look for struggling businesses with potential and turn them around, while others buy well-established brands and expand them further.
When Tata acquired Jaguar and Land Rover, it didn’t start a new car brand but bought and revived existing ones, making them profitable again.
Adoptive entrepreneurs don’t entirely innovate or imitate. Instead, they take existing ideas and make them better.
They combine elements from different businesses, industries, or technologies to create a unique hybrid approach.
Xiaomi didn’t invent smartphones but made high-quality devices at affordable prices, disrupting premium brands like Apple and Samsung in emerging markets.
These entrepreneurs use technology to create businesses. They often work in AI, robotics, biotech, blockchain, and software.
Many have technical backgrounds and use innovation to improve efficiency, automate industries, or solve complex problems.
OpenAI’s ChatGPT brought conversational AI to the mainstream, changing how people interact with technology and automation.
Social entrepreneurs focus on solving social or environmental problems while still running a sustainable business.
Profit matters, but impact matters more for them.
They build businesses that help communities, improve education, or support the environment.
The founder of Grameen Bank introduced microfinance to help low-income individuals start their businesses. This is what social entrepreneurs do.
Green entrepreneurs are similar to social entrepreneurs. They focus on eco-friendly solutions that reduce environmental harm.
Their businesses revolve around sustainability, renewable energy, and reducing carbon footprints.
These entrepreneurs create businesses that support their ideal lifestyle rather than just making maximum profit. They design businesses that give them flexibility, freedom, and personal fulfilment.
One of the best examples is travel bloggers.
They monetise their adventures through sponsorships and online courses, allowing them to explore the world while earning.
Some people see a golden opportunity and jump in… That’s what opportunity-based entrepreneurs do.
They don’t necessarily start with a passion for business but act quickly when they see an unmet need or a growing trend.
The rise of online education during the pandemic created opportunities for EdTech startups like Byju’s, which grew exponentially.
Unlike opportunity-based entrepreneurs, necessity-based entrepreneurs start businesses because they have no choice.
These entrepreneurs became one often due to job loss, financial struggle, or lack of opportunities. They hustle to make ends meet.
A street food vendor selling homemade snacks after losing their job exemplifies necessity-based entrepreneurship.
It’s not about ambition. It’s just about survival.
These entrepreneurs study, analyse, and plan extensively before launching a business.
Before making any move, they focus on data, market trends, business trends and risk minimisation.
For example, pharmaceutical companies invest years in R&D before launching new drugs, ensuring they are backed by thorough research.
Hustler entrepreneurs don’t wait for perfect conditions. They start small, work hard, and scale up.
They are persistent, willing to do the dirty work, and never give up easily.
Ambani started selling textiles in a small shop and, through determination, built Reliance, which is now one of India’s most prominent business empires.
Not all entrepreneurs work for themselves. Intrapreneurs think like business owners but within a company.
They create new products, improve systems, and bring innovative ideas to life without the risk of starting from scratch. Companies encourage intrapreneurship to stay ahead in competitive markets.
An employee at 3M created the Post-it note after experimenting with a weak adhesive. Instead of discarding the idea, the company backed it, and today, it’s essential in the global office.
Rural entrepreneurs bring growth and innovation to villages and small towns.
They focus on local needs, create jobs, and often use natural resources or traditional skills to build sustainable businesses.
These businesses reduce migration to cities and empower rural economies.
Lijjat Papad started with a small group of rural women making papads at home. Today, it’s a ₹1,600 crore business empowering thousands of women across India.
Agricultural entrepreneurs combine farming with business strategies to increase productivity and profitability.
They use technology, supply chain improvements, and innovative farming techniques to modernise agriculture and food production.
Ninjacart is an Indian agritech startup that connects farmers directly with retailers, eliminating intermediaries and ensuring better prices for farmers and consumers.
Some entrepreneurs use the strengths of a specific location to build a business.
This could be tourism-based, resource-driven, or geographically unique. Their business model depends on the location’s natural or cultural advantages.
The Maldives thrives on geographical entrepreneurship. Its stunning islands have become a luxury tourism hub, attracting travellers worldwide.
These entrepreneurs start from scratch with no business background or family legacy to guide them.
They take risks, build businesses on their own terms, and create new success stories.
Second-generation entrepreneurs inherit a family business and take it to the next level.
While they have a foundation, they face the challenge of modernizing, expanding, and keeping the business relevant in changing markets.
By the third generation, family businesses either thrive or struggle. These entrepreneurs must reinvent, digitize, or diversify their businesses to stay competitive.
If they don’t innovate, they risk losing everything.
I have a fun fact for you!
Like the types of entrepreneurship, there are many types of entrepreneurship theories. Amusing, right? But that’s a whole different story…
No matter what type of entrepreneur you are, your vision can fuel remarkable business growth. The key is knowing how to channel your unique style into sustainable success.
If you’re ready to unlock that potential, this program will guide the way.
Now that you know the different types of entrepreneurship, you should know what makes someone a good entrepreneur.
Anyone can have ideas and thoughts, but only a few will act. And those are the ones who succeed.
A good entrepreneur is someone who takes action, adapts, and leads with confidence.
Here are the key characteristics that define a good entrepreneur.
Success in entrepreneurship is about mindset, execution, and the ability to keep growing despite challenges.
Here are some skills you should master to become a successful entrepreneur.
Critical thinking, Problem-solving, Communication, Time management, Financial literacy, Leadership, Innovation, Business planning & execution, etc.
Not only this, but you should also have many other skills to succeed as an entrepreneur.
You can identify your entrepreneurial type by asking yourself these questions.
Your preferences will help you determine which type you belong to.
We become entrepreneurs for different reasons. Regardless, we should be keen to serve our purpose.
Look back on why you started your business and make sure you do what you wanted.
I hope you had a good read. Don’t forget to check your entrepreneur personality through the quiz in this blog!
That depends on how you look at it! Some say four, some say five, and others, like us in this blog, break it down even more.
The most common categories include small business, scalable startup, large company, social, and sometimes intrapreneurship (entrepreneurial spirit within a company).
The four broad types are…
Absolutely, yes!
You can be an intrapreneur (someone who innovates and develops new ideas within a company) or a solopreneur offering services without a company.
Entrepreneurship is more about the mindset than just owning a business.
None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
800K+
350K+
300K+
80K+
Be the first to receive any new updates
© Copyright Quantum Leap Learning Solutions Pvt Ltd
