6.4: Types of Entrepreneurs

There are many types of entrepreneurs, and depending on which website you read, you may see a list of five to fifteen types of entrepreneurs. The type of entrepreneur you are depends on your goals and personal characteristics (e.g., skills, knowledge, creativity, interests, preferences, situation in life, drive, determination, etc.).

The Indeed Editorial Team (2023) provides the following list of nine different types of entrepreneurship.^[1]

• Small business entrepreneurship. People interested in this category are probably interested in making a profit that supports their family and a modest lifestyle.  They often run the business and work in it.  They hire local employees and family members. Local grocery stores, hairdressers, small restaurants, small boutiques, consultants, plumbers, and accountants are a part of this category.
• Large company entrepreneurship. People in this category are often in a team of executives who know how to sustain innovation. Small business entrepreneurship can turn into large company entrepreneurship when the company grows quickly or when a large company acquires a small business. Microsoft, Google, and Disney are examples of this category.
• Scalable startup entrepreneurship. People in this category look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples include Facebook, Instagram, and Uber.
• Social entrepreneurship. People in this category want to solve social problems with their products and services. Their main goal is to make the world a better place, and so they are not concerned with making big profits.
• Innovative entrepreneurship. People in this category aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.
• Hustler entrepreneurship. People who are willing to work hard and put in constant effort are considered hustler entrepreneurs.  Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. They have drive and determination and do not give up easily.
• Imitator entrepreneurship. People in this category use other people’s business ideas but work to improve them. They seek to make certain products and services better and more profitable.  They have a lot of self-confidence and determination. They learn from others’ mistakes.
• Researcher entrepreneurship. People in this category like to do as much research as possible before starting a business. They believe that with the right preparation and information, they have a higher chance of being successful. They tend to rely on facts, data, and logic rather than their intuition.
• Buyer entrepreneurship. People in this category use their wealth to fuel their business ventures, usually through purchasing well-established businesses that they think will be successful. Their goal is to grow the businesses they acquire and expand their profits.

Social Entrepreneur

Some people start businesses in order to help society, people, and communities. A social entrepreneur does not start a company with their main goal being to make a profit. Instead, their goal is to make a positive change in the world. Their goals often align with the United Nations Sustainable Development Goals, and their efforts may have a local, national, or global impact. Social entrepreneurs are driven by purpose—whether it’s fighting poverty, tackling climate change, or ending homelessness. But passion alone isn’t enough. Building a sustainable venture still demands focus, structure, and strategy to create lasting impact.^[2]

Social entrepreneurs—whether for-profit or non-profit—operate with a mission to drive positive change. Working under the banner of social enterprise, they tackle issues like poverty, healthcare access, women’s empowerment, and community development. By reinvesting profits, securing grants, and mobilizing support, they influence institutions and governments to address unmet needs and spark lasting social transformation.^[3]

Necessity Entrepreneur

A necessity entrepreneur is someone who starts a business based on a need for income, out of necessity, because they cannot find employment, have lost their job, need to supplement their income, or require flexibility to attend to other demands in their lives. Some necessity entrepreneurs find business ideas to pursue after retirement or after being downsized. “A typical necessity entrepreneur is over 50 years of age, has been unemployed for over a year, and sees the possibility of finding full-time employment dwindling.”^[5]

Necessity-driven entrepreneurs often start businesses after setbacks like job loss or illness. Though many would prefer stable employment, they turn to entrepreneurship as a way to share their skills or products with others. When traditional paths aren’t available, building a business becomes the only way forward.

An example of this might include a parent with an autistic child who finds it difficult to work a full-time job and still provide the care and attention required to support their child.  This parent decides to stay home to take care of their child because they feel they are the best person to do so. The parent then starts to receive many questions from friends and family about autism, and they realize that there may be a need for this type of service. They decide to obtain formal credentials, and they complete an online program in the field of autism and behavioural science. Once formally qualified, they start a business providing advice to families about autism as a fee-based service. This works well for the necessity entrepreneur because they can now earn an income by providing a needed service and still take care of their child.

Opportunity Entrepreneur

An opportunity entrepreneur is someone who sees an opportunity to make money, gets involved at the right time, and aims for business growth and economic development. For example, Matt Horan launched Rollasole in Bristol, U.K., after his girlfriend complained about walking home in heels. His solution? The first foldable shoe sold in vending machines—debuted in a local nightclub. Word spread, and soon Rollasole expanded online, in stores, and across vending machines. A chance meeting in Las Vegas with Ashley Ross sparked a partnership that brought the brand to the U.S. market. ^[6] Sometimes one great idea acts as a catalyst for other great ideas, and today we can find vending machines dispensing sneakers, dress shoes, “emergency” shoes, and “flip flops” for beach wear or when you need a pair of shoes to enter a restaurant.  So many great ideas!

Another example of an opportunity entrepreneur is Tim Horton, who was a Canadian hockey player. In 1964, he founded the first Tim Horton doughnut shop in Hamilton, Ontario, which later grew into a chain of franchises across Canada and eventually the United States. Burger King purchased Tim Hortons in 2014, and the two brands became subsidiaries of Restaurant Brands International Inc. (RBI).  As of August 2022, RBI is one of the world’s largest quick-service restaurant companies with over $35 billion in annual system-wide sales and over 29,000 restaurants in more than 100 countries.^[7]

Sometimes, a potential entrepreneur identifies an opportunity to make a new product or start a new business, which may be a combination of a profit-making business idea that also supports a socially sustainable goal or a business created out of necessity that not only makes a profit but also supports a socially sustainable goal.

Media Attributions

“A Person Holding Red and White Disposable Cup” by Hemil Dhanani, used under the Pexels license.