The hurdles entrepreneurs go through remain almost the same; it is the belief, behavior, and personality which differs each types of entrepreneurs.
In this article, I am going to discuss 12 different types of entrepreneurs and what they do and the pros and cons of being that kind.
According to Clarence Danhof, there are mainly 4 types of entrepreneurs: Innovating, Imitative, Fabian, and Drone entrepreneur.
But as the world has changed a lot, so is business. That’s why we can see many different kinds of entrepreneurs are evolving with time.
As we progress through this, try to relate each type with yourself. It will help you understand your type as well.
So, let’s dive right in.
Types of Entrepreneurs
Every entrepreneur act according to their personality, characteristics, and their set of beliefs. Some entrepreneurs think they will be successful by hustling, some think they will be successful by striving for their vision.
No matter what it is, they have to go through almost similar things. Their way could be different from each other but the fundamentals remain the same.
Ok, let’s discuss the types of entrepreneurs.
1. The Small Business Entrepreneurs
Small business entrepreneurs are the people who operate their businesses in the local area. The majority of the businesses around us are small businesses.
Grocery stores, plumbers, laundry shops, cafes are examples of this kind of entrepreneurship.
In most cases, they start their businesses to support their living. They are just earning enough to support their day to day needs and never think of scaling.
Pros of being a Small Business Entrepreneur
- Dominate in the local area.
- Low risk of business failure.
- Less competition.
Cons of being a Small Business Entrepreneur
- Limited earning as there is limited growth.
- Can’t grab the opportunities.
2. The Innovative Entrepreneurs
Innovative entrepreneurs are those who bring unique solutions to the most challenging problems in the world. These are people with a mindset of changing the way people think and act forever.
They are very passionate and obsessed about their work and don’t give up until they give their vision a shape.
Innovative entrepreneurs see the world through a different lens and most of the time live in the future. They always strive to make everything around them simple, efficient, and accessible for everyone.
Steve Jobs is one of the greatest innovators of all time. He changed the way people see and use personal computers forever. At that time people used to see the computer as a device to use only at offices.
Pros of being an Innovative Entrepreneur
- Almost no competition at first.
- The satisfaction of bringing a change.
- The reward of competitive advantage.
Cons of being an innovative entrepreneur
- The struggle of creating a new path.
- Have to handle doubts of others, especially shareholders and employees.
3. The Hustling Entrepreneur
Hustling entrepreneurs are people who mostly believe in their work ethic.
They started from nothing and fully rely on their hard work to build their empire. These types of entrepreneurs are not afraid of rejection and willing to do whatever it takes to be successful.
The hustlers are big picture guys and they bring something out of nothing.
Gary Vaynerchuk is a great example of a hustling entrepreneur. He started his career in his fathers’ wine store and makes it a million-dollar business.
And then, at the age of 34, he started his own media agency from nothing with just hustle.
Pros of being a Hustling Entrepreneur
- Hustlers outwork everyone.
- They never give up in the face of fear and problems.
- They are early mover, which benefits them.
Cons of being a Hustling Entrepreneur
- Chances of burning out.
- The hustle culture set up an unsustainable expectation.
- Hustle encourages an unhealthy lifestyle.
4. The Imitators
The imitating entrepreneurs are those who copy other’s ideas and work on it to make it better than the existing one in the market.
By doing this they try to get a competitive advantage over others.
They always try to work on something which is tried and tested. It reduces their risk of making a certain product or service.
Imitating entrepreneurs believe in their approach of doing business and they are very proud and confident about it.
Sachin Bansal and Binny Bansal created Flipkart by inspiring by amazon. They both used to work at amazon before starting their own e-commerce company in India.
Pros of being an Imitating Entrepreneur
- Low risk of failing.
- By coping, they save time and resources.
- Can convince people to buy their product or service easily as the market is already made.
Cons of being an Imitating Entrepreneur
- Known as a copycat.
- It becomes very difficult to be a market leader.
Related: Top Functions of an Entrepreneur
5. The Researchers
The researchers hate making mistakes and always try to know everything about their business before they start.
These entrepreneurs are very detail-oriented and want everything to be perfect. Even after having an idea, they can take a very long time to launch it.
Sometimes their obsession over numbers and facts cost them a fortune. They try to learn from others’ mistakes to ensure their success.
Pros of being a Researching Entrepreneur
- Very high chances of success.
- Perfect every detail and minimize risk.
- Learn from others’ mistakes.
Cons of being a Researching Entrepreneurs
- Start very late.
- Slow progress.
- Often miss on opportunities.
6. The Buyers
These are people with money. They are not interested in building business; rather they use their fortune to buy them.
After buying a particular business, buyers restructure those as they want.
Their goal with this is to make a profit with minimal risk. That’s why they always try to buy potential businesses that can do better in the future.
They don’t just relax after buying a business and continue to expand their investment.
Pros of being a Buyer
- Investing in an established business.
- Have enough time and experience to expand it further.
- Minimal risk.
Cons of being a Buyer
- Have to deal with unknown problems.
- Sometimes buyers have to pay a very high price.
7. Social Entrepreneurs
A social entrepreneur is someone who takes on society’s most challenging problems and finds out the best possible solution.
These individuals are willing to take the risk and work hard to solve community-based problems. In social entrepreneurship, contribution to social being is primary and everything else is secondary (profit, recognition, etc.).
Sanjit Roy is a great example of a social entrepreneur in India. He founded the Barefoot College, a solar-powered college for the poor.
Pros of being a Social Entrepreneur
- Creating inspiring solutions.
- Implementing social change.
Cons of being a Social Entrepreneur
- Lack of funding.
- Hard to get trust from others.
8. The Visionary Entrepreneur
Having a vision means seeing something that no one else can see.
Visionary entrepreneurs have a very strong belief in their ideas and they think that they can change the world with their ideas.
They are different among all. Visionary people uniquely see things and bring out things that most people can’t understand.
Although visionary people face a lot of obstacles to convince people of their ideas as no one can see what’s hidden within. But they are so very devoted to their visions that they don’t give up until it’s become a reality.
Bill Gates, Larry Page, Steve Jobs, Ray Kroc are some of the visionary entrepreneurs.
Pros of being a Visionary Entrepreneur
- Bring a revolution in the world.
- It tempts innovation.
- Visionary entrepreneurs understand risk.
Cons of being a Visionary Entrepreneur
- Too many ideas to implement.
- Sometimes unrealistic expectation causes clash.
- Very difficult to convince people of your idea.
9. The World Changer
The world changers are crazy people. They have a dream of a better world and they can pay any price to make it happen.
Often individuals with this kind of mindset are very generous, empathetic, and tough at the same time.
These entrepreneurs see possibilities in every problem, opportunity in every obstacle.
World changers don’t live for themselves, they live for others. Their biggest drive in life is to leave this world in a better place than they have found it.
Elon Musk, the founder of Tesla, SpaceX, and many other companies doing the same.
Pros of being a World Changer
- World changers make their mark in the world.
- People wish for their success.
Cons of being a World Changer
- World changers have to sacrifice a lot of their happiness.
- In the beginning, people don’t believe you.
10. The Survivor
The surviving entrepreneurs are those people who are exhausted by their day to day job and leave it to start their own business.
They are individuals who want to live life in their terms. These entrepreneurs start their own business and enjoy their freedom and success.
Pros of being a Survivor
- They live their dream life.
- Build a business around their passion.
Cons of being a Survivor
- Quitting a job can be risky at times.
- Lack of support.
- Face financial problems.
11. The Solopreneurs
Solopreneurs are the kind of entrepreneurs who loved working alone.
They can work in a team but don’t prefer to do that. If needed, they hire people virtually to get their job done.
As they don’t hire people and mostly prefer to work from home the cost of starting a business and running is very less.
Even it fails, they don’t mind.
In most cases, Solopreneurs work for themselves and don’t involve themselves for a big reason.
Pros of Being a Solopreneur
- Very low-risk failure.
- Freedom of work.
- Can start a business with a small investment.
Cons of Being a Solopreneur
- Projects take a lot of time.
- It all relies on you.
- No time for family.
12. Technical Entrepreneur
Technical entrepreneurs are those who apply their ideas using technology. These entrepreneurs are very passionate about what they do and strive very hard to give their ideas a digital identity.
They are mostly very efficient in both technological and entrepreneurial skills.
Techpreneurs are creative and smart and know how to bring their imagination into the marketplace.
Pros of being a Technical Entrepreneur
- The flexibility of work.
- Can reach out to people very easily.
Cons of being a Technical Entrepreneur
- Poor management of finances.
- Sometimes lack of entrepreneurial skill hurts.
Which type of entrepreneur are you?
Hope it helps you understand your ingredient.
Each type has its advantages and disadvantages. Neither is good or bad from another.
What do you think, which type of entrepreneur are you?
Which one resonates more with your behavior?
Let us know by leaving a quick comment.