Types of entrepreneurship

Entrepreneurs are passionate innovators with a desire to change the world. However, they can be found in any industry and their visions and aspirations vary from one person to the next. Indeed, some entrepreneurs are motivated by the lure of money while others are motivated by social good. Some entrepreneurs start small companies and believe in sustained hard work to achieve success while others are a part of corporations that use capital to reach their goals.

Social entrepreneurship

The main goal of social entrepreneurship is to improve society in some shape or form. While some of these companies exist to make money, there are also non-profits and B Corps that balance social purpose with profit.

Warby Parker is one example of social entrepreneurship, with the company donating more than eight million pairs of glasses to disadvantaged citizens who are vision-impaired.

Innovation entrepreneurship

Innovation entrepreneurship is the transformation of an invention or idea into a business venture. This entrepreneurship type seeks to change the way people live in a manner that no other company has managed to do.

Elon Musk, Steve Jobs, and Bill Gates are all examples of motivated, passionate innovation entrepreneurs whose companies redefined what was thought possible.

Small business entrepreneurship

Small business entrepreneurship describes modest innovation that tends to be the result of adding a new twist to an existing product or service. Profits from these innovations are used to meet payroll or support basic living expenses. In other words, they are not reinvested to expand the business.

As the name suggests, small business entrepreneurship is found in many mom-and-pop businesses such as hairdressers, butchers, grocery stores, florists, and consultants.

Hustler entrepreneurship

Hustlers are those who believe in the power of hard work sustained over a long period. They have grand visions to grow the company into something more substantial and are not afraid to take risks.

One example of hustler entrepreneurship is Mary Kay Ash, founder of the beauty company Mary Kay Cosmetics. Ash used a combination of confidence, conscientiousness, extroversion, and superior networking skills to make her dream a reality.

Imitator entrepreneurship

In a similar way to small business entrepreneurs, imitators consider what is already working and then develop a product, service, or business model that is innovative or iterative. They can spot the mistakes others have made and improve on them with self-confidence and conviction.

Many believe imitator entrepreneurship to be a blend of innovators and hustlers. Facebook CEO Mark Zuckerberg is one such example.

Researcher entrepreneurship

Researcher entrepreneurs favor practicality over innovation and will spend vast amounts of time analyzing data to reduce the chances of a venture failing. Researchers possess exemplary critical thinking and problem-solving skills and have a strong desire for order. They make sure they understand every aspect of a business and a driven by logic rather than emotion.

Larry Ellison, a businessman, and co-founder of Oracle Corporation is a good example of researcher entrepreneurship.

Key takeaways:

  • Entrepreneurs are passionate innovators with a desire to change the world. They can be found in almost any industry and the visions and aspirations vary from one entrepreneur to the next.
  • Social entrepreneurship seeks to improve society in some way, while innovation entrepreneurship takes a new idea and makes it viable.
  • Small business entrepreneurship is commonly found in mom-and-pop stores where the primary goal is to support a basic but comfortable existence. Hustler entrepreneurs believe success is down to sustained hard work, while researcher entrepreneurship is practical, analytical, and driven by logic instead of emotion.

Business Model Frameworks for Entrepreneurs

FourWeekMBA Business Model Framework

business model is a framework for finding a systematic way to unlock long-term value for an organization while delivering value to customers and capturing value through monetization strategies. A business model is a holistic framework to understand, design, and test your business assumptions in the marketplace.

VTDF Tech Business Model Framework

A tech business model is made of four main components: value model (value propositions, missionvision), technological model (R&D management), distribution model (sales and marketing organizational structure), and financial model (revenue modeling, cost structure, profitability and cash generation/management). Those elements coming together can serve as the basis to build a solid tech business model.

Business Model Canvas

The business model canvas is a framework proposed by Alexander Osterwalder and Yves Pigneur in Busines Model Generation enabling the design of business models through nine building blocks comprising: key partners, key activities, value propositions, customer relationships, customer segments, critical resources, channels, cost structure, and revenue streams.

Lean Startup Canvas

The lean startup canvas is an adaptation by Ash Maurya of the business model canvas by Alexander Osterwalder, which adds a layer that focuses on problems, solutions, key metrics, unfair advantage based, and a unique value proposition. Thus, starting from mastering the problem rather than the solution.

Blitzscaling Canvas

The Blitzscaling business model canvas is a model based on the concept of Blitzscaling, which is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency and focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.

Business Model Wheel

business model wheel provides a structured approach to defining a business model. Each model wheel is broken down into three core components: offering, monetization, and sustainability. Each component in turn contributes to a total of eight areas that make up an ideal business model.

Business Model Innovation Framework

Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

3C Business Model Analysis

The 3C Analysis Business Model was developed by Japanese business strategist Kenichi Ohmae. A 3C Model is a marketing tool that focuses on customers, competitors, and the company. At the intersection of these three variables lies an effective marketing strategy to gain a potential competitive advantage and build a lasting company.

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