Types of entrepreneurship characteristics and tips

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Entrepreneurship

An entrepreneurship is the process of creating a business from an innovative idea that solves one or several problems of a group of people. This brief definition accounts for the general concept but, in practice, there are different types of entrepreneurship. In this article we are going to explain what each type of venture consists of , so that you can identify the one that best suits your business idea. At the end of the post, you will find some tips that will help you boost your entrepreneurial skills .

Types of entrepreneurship

To develop this categorization, we take into account aspects such as the purpose of the venture, the initial investment, the type of solution it develops, and its impact on society.

Based on these variables, we define 6 types of entrepreneurship :

  1. Small business
  2. Scalable entrepreneurship
  3. Social entrepreneurship
  4. Mirror or imitation entrepreneurship
  5. Opportunistic entrepreneurship
  6. Incubator entrepreneurship

Let’s look at each one in detail.

1. Small business

These are sole proprietorships , with certain exceptions where there may be one or two more partners. They are also known as micro-enterprises and are characterized by having a low initial investment . Likewise, they are considered local enterprises, which seek to distribute their products or services within the limits of their city. An example of this type of entrepreneurship in Argentina are the micro and small companies of the acronym Mayme.

2. Scalable entrepreneurship

Scalable ventures seek to have exponential growth in the short and medium term . They are born with the aim of expanding rapidly and becoming multinational companies. They are usually companies associated with the technological world and some examples of them are mobile applications such as Netflix, Facebook and Instagram that were designed to satisfy millions of people.

3. Social entrepreneurship

The main objective of this type of entrepreneurship is to generate a positive impact in your community and the world. Those who carry out social enterprises usually develop their initiatives in sectors related to education, health and the environment.

4. Mirror or imitation entrepreneurship

They are those who replicate an idea that was or is being successful in the market. You can imitate a product, service or a business model. Franchises are an example of mirror ventures. To acquire this type of business it is necessary to have a significant investment, due to the high cost of paying for a recognized brand.

5. Opportunistic entrepreneurship

As its name indicates, this type appears at the opportune moment to solve a specific and urgent need. During the pandemic, for example, this type of company arose that began to manufacture chinstraps in large quantities.

What characterizes these businesses is the vision of the entrepreneur, his creativity and his ability to execute quickly.

6. Incubator entrepreneurship

Unlike the opportunist, the incubator venture focuses on investigating what are the permanent needs of the market to offer an innovative solution. This type of entrepreneurship requires a large investment, to carry out the investigations that allow it to reach correct conclusions about the needs of the niche that they are analyzing. An example of an Argentine incubator is NXTP Labs , which provides support to emerging companies through business management and marketing consultancies.

Types of entrepreneurs

We can categorize entrepreneurs based on the style of business they undertake, the time they have been developing their idea and the steps they follow to make it a reality.

The 11 best-known types of entrepreneurs are:

  1. Passionate entrepreneur
  2. Innovative entrepreneur
  3. Visionary entrepreneur
  4. Investor entrepreneur
  5. Multientrepreneur
  6. Academic entrepreneur
  7. Social entrepreneur
  8. Entrepreneur by necessity
  9. Specialist entrepreneur
  10. Entrepreneur entrepreneur
  11. Accidental Entrepreneur
    How to identify your entrepreneurial profile? Some questions you can ask yourself to identify the type of entrepreneur closest to your profile are:
    • Why did you start your business?
    • What drives you to continue in your business?
    • Where do you sell your products and what is your business model like?
    • What plans do you have with your venture? Is it momentary? To have extra resources?
      Tips to enhance your entrepreneurial skills. We want your business to prosper and evolve. For this reason, we created this list with key recommendations to enhance your entrepreneurial skills:
      • Following your passion and motivation allows other people to believe in you. Strengthen your capacity with a leadership course .
      • Be methodical, set ambitious goals and constantly measure the results of your actions , to adjust what is necessary and replicate what is bringing good ROI (return on investment) to your venture.
      • If you are an investor entrepreneur, diversify and act with caution. Advise yourself with several specialists, learn about the different investment instruments and do not bet on just one.
      • Do not try to develop all the ideas you are undertaking in the same way. Delegate responsibilities and surround yourself with people who share your vision .
      • Avoid designing and applying processes that are too rigid, since in the entrepreneurial ecosystem iteration is as necessary as flexibility .
      • If you are a social entrepreneur, look for non-profit associations that can help you with your venture. Many people are needed to create social changes and that is what will consolidate your project.
      • You never know too much about something. If you already master a topic, explore new challenges to make your venture more powerful.
    • Passionate entrepreneur Passion is essential for the success of entrepreneurs. Those who convey passion are more persuasive, motivated, have larger social networks, and more social capital. They have more income, sales revenue, and growth in sales and earnings than less passionate entrepreneurs.
    • Innovative entrepreneur  Individual who has the ability to undertake to create innovative products according to the changing demands of the market.
    • Visionary entrepreneur Visionary entrepreneurs have the unique ability to make others believe in the vision as much as they do themselves, convincing others that the better future described is one they want to live in
    • Investor entrepreneur An entrepreneur is someone who takes on greater than normal financial risk in order to run a business or generate income. The only difference between an entrepreneur and an investor is a matter of degree. Both use real estate as an investment vehicle to generate income, appreciation, and tax benefits.
      How to identify your entrepreneurial profile? Some questions you can ask yourself to identify the type of entrepreneur closest to your profile are:
    • Why did you start your business?
    • What drives you to continue in your business?
    • Where do you sell your products and what is your business model like?
    • What plans do you have with your venture? Is it momentary? To have extra resources?
      Tips to enhance your entrepreneurial skills. We want your business to prosper and evolve. For this reason, we created this list with key recommendations to enhance your entrepreneurial skills:
      • Following your passion and motivation allows other people to believe in you. Strengthen your capacity with a leadership course .
      • Be methodical, set ambitious goals and constantly measure the results of your actions , to adjust what is necessary and replicate what is bringing good ROI (return on investment) to your venture.
      • If you are an investor entrepreneur, diversify and act with caution. Advise yourself with several specialists, learn about the different investment instruments and do not bet on just one.
      • Do not try to develop all the ideas you are undertaking in the same way. Delegate responsibilities and surround yourself with people who share your vision .
      • Avoid designing and applying processes that are too rigid, since in the entrepreneurial ecosystem iteration is as necessary as flexibility .
      • If you are a social entrepreneur, look for non-profit associations that can help you with your venture. Many people are needed to create social changes and that is what will consolidate your project.
      • You never know too much about something. If you already master a topic, explore new challenges to make your venture more powerful.
    • Passionate entrepreneur Passion is essential for the success of entrepreneurs. Those who convey passion are more persuasive, motivated, have larger social networks, and more social capital. They have more income, sales revenue, and growth in sales and earnings than less passionate entrepreneurs.
    • Innovative entrepreneur  Individual who has the ability to undertake to create innovative products according to the changing demands of the market.
    • Visionary entrepreneur Visionary entrepreneurs have the unique ability to make others believe in the vision as much as they do themselves, convincing others that the better future described is one they want to live in
    • Investor entrepreneur An entrepreneur is someone who takes on greater than normal financial risk in order to run a business or generate income. The only difference between an entrepreneur and an investor is a matter of degree. Both use real estate as an investment vehicle to generate income, appreciation, and tax benefits.

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