Many people are starting their own businesses today. There are three main types of entrepreneurial ventures: starting a small business, launching a new technology startup, or creating a social enterprise. Each type offers unique opportunities and challenges. Knowing the differences between them can help people decide which path to take. Let’s look at each type in detail.

What is Being an Entrepreneur?

There are three main types of entrepreneurs: The Creator, The Builder, and The Operator. Each type has unique qualities and is best suited for different business types and stages of development.

For instance, The Creator is usually the innovator who starts a business from scratch, focusing on new ideas and groundbreaking products or services. The Builder, on the other hand, excels at growing an existing concept into a larger, more sustainable business model. Lastly, The Operator is skilled at managing and optimizing the day-to-day operations of a business to ensure its smooth functioning.

It’s worth noting that innovation is not always a requirement for entrepreneurship, as builders and operators bring value to the business in other ways. In addition, intrapreneurship, which is the practice of behaving like an entrepreneur within a large organization, is becoming increasingly popular. Employees are taking on entrepreneurial roles to drive innovation and growth within established companies.

The Big Three Kinds of Entrepreneur Ventures

Type 1: The Small Business Owner

A small business owner has specific characteristics. They are hands-on, adaptable, and have a good understanding of their product or service.

Unlike other types of entrepreneurs, the small business owner focuses on day-to-day operations, providing personalized customer service, and overall business direction. This role is different from that of a creator, who is more involved in generating ideas and innovations, and a builder, who focuses on scaling and growth strategies.

The small business owner’s main priority is to ensure smooth functioning and sustainability. They often put in long hours and dedicate themselves to their business’s success. With a clear understanding of their market and a strong work ethic, small business owners play a valuable role in the entrepreneurial ecosystem.

Type 2: The Startup Creator

The Type 2 entrepreneur, also known as The Startup Creator, is highly creative, visionary, and skilled at spotting new business opportunities. They take risks and are unafraid to pursue fresh ideas. These entrepreneurs excel at turning their ideas into successful business ventures, often focusing on product or service development and disrupting the market.

Unlike other types of entrepreneurs, the Type 2 entrepreneur concentrates on the early stages of a business, from creating the concept to launching and early growth. Their impact on the business world comes from their ability to introduce new and innovative products or services that can adapt to evolving consumer needs and fill market gaps.

By establishing new businesses, they contribute to economic growth, job creation, competition, and overall industry advancement.

Type 3: The Big Company Innovator

Type 3 entrepreneurs, also known as Big Company Innovators, drive innovation and change in larger companies. They have strong leadership skills, strategic thinking, and can handle complex projects and teams. They work within established organizations, dealing with bureaucratic challenges and existing corporate culture.

Some people think that Type 3 entrepreneurs are not as innovative or agile as traditional ones and don’t face the same level of risk. But, in reality, they play a crucial role in driving growth and adapting to market changes within big companies. They encounter unique challenges that demand different skills and approaches.

Figuring Out What Kind of Entrepreneur You Are

There are three main types of ventures that entrepreneurs are typically drawn to: running a small business, creating a startup, or innovating within an established company.

The Creator values innovation and enjoys creating something from the ground up. The Builder is more likely to be drawn to traditional business ownership and creating something new, while The Operator thrives on improving existing businesses and implementing innovation within an established company.

Each type of entrepreneur contributes different strengths to a business and is suited to different stages of a business’s life cycle.

Evaluating one’s core strengths, considering the business’s needs, and planning for future growth or exit strategies are recommended steps. Establishing relationships with professional business advisors and exploring options for growth capital needs play a crucial role in determining what type of entrepreneur one is.

Questions People Ask About Entrepreneur Types

Do You Need Innovation to Be an Entrepreneur?

Innovation is important for entrepreneurs. It helps create new business opportunities and stay competitive. Different types of entrepreneurs rely on innovation. The Creator type develops original ideas. The Builder type focuses on scaling and growing the business. The Operator type manages business operations and needs to innovate for efficiency. Even entrepreneurs within established companies need to be innovative for growth and relevance. Franchise owners are also considered entrepreneurs.

Regardless of the venture, innovation is vital for entrepreneurial success.

Can You Be an Entrepreneur Inside a Big Company?

Being an entrepreneur within a big company comes with challenges and opportunities. They have resources, stability, and infrastructure for larger projects and financial investment. But, they also face obstacles like navigating bureaucracy and resistance to change. Compared to small business owners, they must adapt to the organization’s unique culture and structure.

Successful corporate entrepreneurs need skills like adaptability, resilience, leadership, and the ability to build networks within the company. An entrepreneurial spirit and a willingness to take calculated risks are key for thriving in a large corporate environment.

Is Owning a Franchise Like Being an Entrepreneur?

Owning a franchise is like being an entrepreneur. It means taking on the risk of starting and running a business. Both franchise owners and entrepreneurs oversee day-to-day operations, manage employees, and make important business decisions. They also have the potential to grow a successful business and generate profits.

But owning a franchise differs from being an entrepreneur in some ways. Franchise owners must follow specific guidelines and standards set by the franchisor, limiting creativity and autonomy. Entrepreneurs have the freedom to create their own unique business concepts and strategies without the constraints of a pre-established brand.

Despite these differences, both franchise owners and entrepreneurs need similar qualities like determination, leadership, and willingness to take risks to achieve success.

Can You Call Yourself an Entrepreneur If You Didn’t Start the Business?

Some people think only the person who starts a business is an entrepreneur. But it’s not that simple. An entrepreneur can also be someone with new ideas, who takes risks, and makes those ideas happen. This includes spotting opportunities, adding value, and dealing with uncertain situations. These are important traits for both business starters and people who help a business grow.

Being an entrepreneur also means managing resources, taking charge of both success and failure, and aiming to make abig difference. So, the meaning of being an entrepreneur should include anyone who adds to business growth and new ideas, whether they started the business or joined later.