ENTREPRENEURSHIP 103: What Are the Types of Entrepreneurships?

Entrepreneurship is a broad term that encompasses a diverse range of individuals and businesses. Entrepreneurs come in many shapes and sizes, and they operate in different industries, with varying levels of risk and opportunity. In this article, we’ll explore some of the different types of entrepreneurship and highlight famous examples of each.

Small Business Entrepreneurship

Small business owner entrepreneurship is perhaps the most common type of entrepreneurship. This type of entrepreneur often starts a business with a limited amount of capital and looks to grow that business over time. The goal is often to create a steady stream of income or build wealth through ownership of the business. This type of entrepreneurship is prevalent in the service industry and may include a wide range of small businesses, from a local coffee shop to a dog grooming service.

One example of successful small business entrepreneurship is Patagonia, a clothing company that was founded by Yvon Chouinard in 1973. Chouinard started the business by selling climbing equipment out of the back of his car and grew it over time into one of the most respected outdoor clothing brands.

Scalable Startup Entrepreneurship

Scalable startup entrepreneurship involves starting a business venture with the goal of rapid growth and significant profit potential. Scalable startups are typically technology-based and focus on developing innovative products or services that disrupt established industries. They often require significant initial investment, and the payoff for success can be significant.

One example of a successful scalable startup entrepreneur is Travis Kalanick, co-founder of Uber. Kalanick started Uber with the goal of creating a disruptive transportation service that would change the way people get around in cities. Today, Uber has expanded to over 900 cities worldwide and is valued at over $70 billion.

Large-company Entrepreneurship

Large-company entrepreneurship is a type of entrepreneurship where a new business division is created within an existing large company to explore new markets or products that are not directly related to the core business of the existing company. It allows companies to leverage their existing resources and infrastructure to launch new ventures while minimizing risk.

One example of a successful large company entrepreneurship is Google’s foray into the self-driving car industry. In 2009, Google started experimenting with autonomous technology by retrofitting a fleet of Toyota and Audi cars with self-driving systems. In 2010, it launched its own self-driving car division, Waymo, which became a standalone subsidiary under Alphabet Inc., Google’s parent company, in 2016. Waymo has since become a leading player in the autonomous vehicle industry, leveraging Google’s existing resources and infrastructure to develop and launch new ventures while minimizing risk.

Social Entrepreneurship

Social entrepreneurship is a type of entrepreneurship that combines traditional business practices with a focus on addressing social, cultural, or environmental issues. Social entrepreneurs aim to create positive social change and impact by developing and implementing innovative solutions that address pressing social or environmental problems, while also creating sustainable and scalable business models that generate profits.

One example of a successful social entrepreneurship is TOMS Shoes. It was founded in 2006 by Blake Mycoskie, who was inspired by a trip to Argentina where he saw the poverty and lack of footwear. TOMS Shoes donates a pair of shoes to a child in need for every pair of shoes purchased, and has since expanded into other products and initiatives, including eyewear and clean water programs. As of 2021, the company has donated over 100 million pairs of shoes to people in need. 

Of course, one business can compress the features of several types of entrepreneurship, as all of them can be considered as models of development and expansion as well. It is important, however, not to lose focus on the main character of one’s business and maintain the core values.

So the question remaining is:

WHICH ONE IS RIGHT FOR YOU?