Five Types of Entrepreneurs
Although branded all under one tagline, entrepreneur, there are many faces and types of entrepreneurship which creates different business models and paths an entrepreneur follows or chooses. Some of this has to do with the entrepreneur themselves and some has to do with environment.
Here are 5 types of entrepreneurs and how each is different:
These are the ones who invent the new ideas, new products, new production methods or processes, discover potential markets and reorganize the company’s structure. These are the industry leaders and contributes significantly towards the economic development of the country. The innovative entrepreneurs have an unusual foresight to recognize the demand for goods and services. They are always ready to take a risk because they enjoy the excitement of a challenge, and every challenge has some risk associated with it.
The Hustler is a self-starter determined to succeed in the world of entrepreneurship. Armed with an outgoing personality and a presence that exudes confidence, The Hustler can sell any product and pitch any company to anyone, from customers to investors and everyone in between. Hustlers are motivated by their dreams and will work extremely hard to achieve them. They tend to be very focused and will get rid of all forms of distractions, favoring risks over short-term comfort.
The imitating entrepreneurs are those who immediately copy the new inventions made by the innovative entrepreneurs. These do not make any innovations by themselves; they just imitate the technology, processes, methods pioneered by others. These entrepreneurs are found in the places where there is a lack of resources or industrial base due to which no new innovations could be made. Thus, they are suitable for the underdeveloped regions where they can imitate the combinations of inventions already well established in the developed regions, in order to bring a boom in their industry.
An opportunistic entrepreneur is pretty much exactly what the title says: one who recognizes an opportunity and moves quickly to capitalize on it. A store owner who has a supplier for umbrellas may quickly order many just as the rainy season begins in some region. Or a T-shirt printer may quickly print the logo and motto of a winning sports team and have those shirts ready for sale before anyone else. Their success maybe short-lived or it may initiate a fad or become a household need be a great success for many, many years. Typically, we find that many small businesses are created by opportunistic entrepreneurs.
One thing that separates this type of entrepreneur is their wealth. buyers usually use their financial position to assess a business model and its viability, move to acquire it and then hire someone else to run and grow the business. This type of entrepreneur does not go down the innovation lane and focuses more on an established venture where the foundation has been built and the idea has been tested and accepted by the marketplace.
While there are advantages and disadvantages to each type of entrepreneur, one stands out. Without a doubt the true entrepreneur most likely aligns themselves in the category of innovator. Bringing something new to the marketplace or creating a new marketplace or category all together is one of the foundations and hallmarks for most remembered entrepreneurs and typically is the reason many choose entrepreneurship in the first place. Innovation is the key that drives us forward and the key that unlocks new value.