Hello everyone,

LET'S LEARN ABOUT

CLASSIFICATION OF
ENTREPRENEURSHIP

GLADWIN - GOWTHAMAN
 CLASSIFICATION OF ENTREPRENEURSHIP
While the basic principles of entrepreneurship are the same—planning, starting and operating a
business—the distinct nuances and skills needed vary depending on the type of business you plan
to start. Becoming an entrepreneur requires the ability to define these differences, and pinpoint
the unique elements that are needed.

Traditionally, entrepreneurship is categorized into four main types: small businesses, scalable
start-ups, large companies and social entrepreneurs. These models cover the fundamentals of
starting business ownership and focus more on the company itself, rather than the qualities of the
entrepreneur. However, just as the world continues to change, so do businesses. This means new
opportunities for risk-taking and innovative game changers to pave the way in diverse
entrepreneurial ways.
 10 MOST COMMON TYPES OF
ENTREPRENEURSHIP:
1. Small businesses entrepreneurship
2. Scalable start-up entrepreneurship
3. Intrapreneurship
4. Large company entrepreneurship
5. Imitative entrepreneurship
6. Innovative entrepreneurship
7. Buyer entrepreneurship
8. Researcher entrepreneurship
9. Hustler entrepreneurship
10. Social entrepreneurship
01. SMALL BUSINESS ENTREPRENEURSHIP
This type of entrepreneurship refers to any kind of small business that has been created by one person, without the goal to expand or
franchise. For example, if you were planning to open a nail salon, a general store or a taco truck your goal would be to launch a
single store. You’d likely plan on hiring local employees or even family members to get your business off the ground and would need
to invest your resources directly into the business.

In this type of business, you only make a profit if your company does, meaning you need to be very driven, responsible and
committed to your vision. In 2020, there were 33.7 million small businesses in the United States, accounting for 99.9% of
companies, proving that small business entrepreneurship is on the rise.

02. SCALABLE START-UP ENTREPRENEURSHIP

Rooted in the idea of changing the world, scalable start-ups focus on how to create a business model that is both repeatable and
scalable (more sales with more resources). From the get go, this style of entrepreneurship begins with the hope of rapid expansion and
big profit returns. Many start-ups have a similar ‘garage to riches’ narrative, beginning with a simple idea that is brought to life by the
tenacity of entrepreneurs with the support of investors. Amazon, Google and Apple are all examples of trailblazing start-ups that have
changed the world.

In order to establish a successful start-up, you need to pay attention to the amount of money you have (which is often supported by
venture capital investors) and the human resources behind your business. The key to starting this type of business model is knowing the
long-term plans for profitability and the ways in which your company will grow, both for the sake of your investors, and your own.

03. INTRAPRENEURSHIP
Unlike an entrepreneur, who is also the founder, designer and manager of a business, an entrepreneur is a self-motivated, and action-
oriented employee who thinks out of the box and works as an entrepreneur within a company. Intrapreneurship is a way that
companies can support and encourage employees that have entrepreneurial spirit.
 Shutterstock, for example, hosts an annual 24-hour hackathon which lets employees pursue innovative ideas that will benefit the
company. Another example of an entrepreneurial innovation is Facebook’s ‘Like’ button which was also created in a similar hackathon
event, which is now an integral part of the brand.

04. LARGE COMPANY ENTREPRENEURSHIP

Large company entrepreneurship refers to companies like Disney, Google, Toyota, and Microsoft who have finite life cycles, as in,
they keep innovating and offering consumers new products that are variants around their core product-line.

A distinguishing feature of this type of entrepreneurship is that it is not starting a new business, rather creating new products or
subsidiaries within an existing company, or acquiring smaller businesses (like when Facebook bought Instagram and WhatsApp). More
specifically, these divisions are focused on reaching new markets, expanding the customer base and growing the business - sometimes
via new company sites.

Another component of large company entrepreneurship is a commitment to building company culture, ensuring that as a company
expands all employees are a part of the growth.

05. IMITATIVE ENTREPRENEURSHIP

Imitation is the best form of flattery, and an imitative entrepreneur (also referred to as an adoptive entrepreneur) is one who copies
what successful innovative entrepreneurs have previously done, most often with lower financial risks and limited resources.

If you are using an imitative entrepreneurship style, in essence you are copying an idea but finding ways to improve it. By taking note
of others' mistakes and finding creative ways to make a business better, you can become a lucrative entrepreneur.
06. INNOVATIVE ENTREPRENEURSHIP
Innovative entrepreneurs, as the name suggests, are constantly trying to come up with the next big thing. If you have ground-
breaking ideas of how to start a business or specific services and products that can become business ventures, you might be an
innovative entrepreneur.

As an innovator, you know you must always be aware of the current market conditions to find original and creative ways to disrupt
them. Innovation refers not only to product ideas but also the ways in which business is conducted. Innovative entrepreneurship is all
changing the status quo and pushing boundaries.

07. BUYER ENTREPRENEURSHIP

You’ve probably heard the saying “money makes money”, and for a buyer entrepreneur this definitely rings true. Instead of figuring
out how to raise money for a business, a buyer entrepreneur purchases either a developing or well-established company and helps
them thrive.

Unlike investors, a buyer entrepreneur is involved both financially and personally in the business, remaining active and directly helping
the investment to grow. It is not uncommon for buyer entrepreneurs to hand off their leadership to someone else at some point, but
they always maintain an active part in the businesses they purchase.

08. RESEARCHER ENTREPRENEURSHIP

Researcher entrepreneurs rely on facts, data and the belief that with the right preparation and knowledge will be more likely to
succeed. If this sounds like you, this is exactly what research entrepreneurship is all about—a great business idea paired with academic
research, and an understanding of how to stretch limited resources to the max.

Take a look at Nobel Prize winner and physicist, Theodor Hunch, a researcher entrepreneur who co-founded Menlo Systems, taking his
winning optical frequency comb technology and using it to make products for the market.
09. HUSTLER ENTREPRENEURSHIP
Don’t let the name throw you off, a hustler in business refers to a self-starter, a highly motivated person who is driven to succeed.
This type of entrepreneurship style grows directly from the entrepreneur, who must be confident, fearless and have rigorous work
ethic.
If you are the type of person who can sell anything to anyone, is always aware of the next big thing and is able to recognize
opportunities, you might just be a hustler after all.

10. SOCIAL ENTREPRENEURSHIP

Social entrepreneurs are innovators whose main goal is to create products and services that both benefit the world, and make money.
Social entrepreneurship relates to non-profit, for-profit, or hybrid companies that are committed to social or environmental change.
Some examples include educational programs, microfinance institutions, and companies that provide banking services in undeveloped
countries.

Toms shoes was a pioneer of social entrepreneurship, starting in 2006 offering a one-for-one sales model that gave a pair of shoes to
a child in need for every pair of shoes sold. What separates social entrepreneurship from other types is the measure of success, in that
the goal is not focused solely on financial gain but also on the social impact.
THANK YOU
FOR
LISTENING!