Types of Entrepreneurs

There are hundreds of different kinds of businessmen and hundreds of different types of entrepreneurs. In addition, many entrepreneurs change their goals, ambitions, and priorities as their careers evolve. While many think that being an entrepreneur relies on a specific personality type, the success of the majority of entrepreneurs relies on a particular set of personality traits and skills. These skills and traits allow all different types of entrepreneurs to start, grow, and perfect their business ventures.

Determination. Charisma. Intelligence. Resilience. Foresight. The list of successful entrepreneurial traits goes on and on and combines with skills like self-promotion, communication, time management, problem-solving, and creativity. Not every entrepreneur is the same, but many of the most successful entrepreneurs share these valuable talents and qualities. It may sound easy, but competition is fierce. How can entrepreneurs stand out from their peers?

What are the qualities which make an entrepreneur stand out from other people?

Individuals cannot simply gain skills and use their talents to stand out in the business world. They must continually adapt and change. Entrepreneurs who have staying power realize that their identity will change as their lives go on. Perceptive entrepreneurs understand that real entrepreneurship is not about playing games or posting on Instagram. True entrepreneurs work diligently for themselves and seek to learn new skills and develop new talents daily.

While the popular view of entrepreneurs is that they are focused solely on their profits, effective entrepreneurs realize that they are job creators who help the economy perform. In addition, successful entrepreneurs know that when their companies create an influential product or offer an inspiring service, they are serving society. Excellent business people can sell anything from information to products, from attention to special service.

These days, starting a business is even more doable for new entrepreneurs since it is inexpensive, and new technology makes it easier than ever to get the word out about the new venture. While it may seem like there are more entrepreneurs than ever forging a start for their new ideas, there is a secret to standing out in the business world. What is the secret to building a successful new business?

In this article, we will outline how entrepreneurs can continue finding new ways to stand out by defining the seven types of entrepreneurs.

Why is it important for entrepreneurs and small business owners to be able to differentiate between the different kinds of business people?

These days, successful business people cannot define themselves in only one way. Instead, entrepreneurs must model themselves after all of the different types of entrepreneurs. As a result, entrepreneurs will unlock the secret of success by combining their successful traits and understanding how to continually change to suit any given situation.

What is the Definition of an Entrepreneur?

Traditionally, an entrepreneur is a person who assumes the financial risk of starting a new company on their own. When a business person starts a new venture, there is no guarantee of success, and they must rely on their talents, skills, and wits. However, while entrepreneurs take on the bulk of the risk inherent in a new business, they also profit from all or nearly all of the venture’s gains.

The definition of entrepreneurship has not changed drastically, but it is harder and harder to compartmentalize entrepreneurs. Today’s entrepreneurs are all radically different in terms of talents, interests, passions, and skills. While some observers used to look at legendary entrepreneurs such as Steve Jobs and cast generalizations, such as “all entrepreneurs must drop out of college,” we now know that there is a wide range of successful entrepreneurs in the business world.

However, our careful categorizations of the different classes of entrepreneurs will help readers understand where they fit in and where they have the potential to go when pursuing their new ventures. Here is our list of the top seven types of today’s winning entrepreneurs.

What is an Internet-Based Entrepreneur?

Online entrepreneurs create profits through online sales. These business people harness the power of tech and sell services, information, or specific products via the internet.

Since internet-based business person works virtually, they make profits in unique ways. Online entrepreneurs make money in four main ways: selling information through courses, selling products online, and offering services online.

Let’s take a quick dive into each category to understand these different entrepreneurial subdivisions.

• How Can Entrepreneurs Sell Courses on the Web?

Most successful entrepreneurs have expertise in at least one subject, and many realize they can sell courses online that feature the information they know. Online classes are an easy, popular way to share information and make a profit. For example, entrepreneurs who know how to bartend could concoct an interacting bartending course, or those who know how to budget their finances well could devise an 8-part budgeting course.

Selling courses online can be profitable, and there is very little overhead, making it a great project for entrepreneurs who are just starting. It helps to clearly understand the target audience’s demographic so that the course targets the right people.

As more and more of us work and take classes from home, research tells us that the e-learning industry will top 300 billion dollars by 2025. There are a few ways to sell courses online, and here are the top methods:

• Entrepreneurs can use their website to offer classes (also known as self-hosting)
• Entrepreneurs can use an online course marketplace
• Entrepreneurs can sign up to use a course-hosting platform

What is Self-Hosting?

For the first option, entrepreneurs have options available to them, such as LearnDash and WP Courseware. These programs help people host classes and store their materials on their websites.

What Are Online Course Marketplaces?

For the second option, entrepreneurs can choose an online course marketplace where they publish their courses. Prospective students seeking to learn more will search through the marketplace, and if they are interested in the entrepreneur’s content or teaching style, they will buy the course. Unfortunately, business people cannot control the course prices, and they must pay a percentage to the host for each sale.

Some options for marketplaces that work well for new entrepreneurs are Teachable and Skillshare. Both of these offer course building and hosting for low costs.

What Are Course Hosting Platforms?

For the third option, there are two concepts to choose from. First, platforms exist that host entrepreneurs’ online courses. Then, the businessperson can brand the course using their domain.

The drawback to this first option is that the pressure is on the entrepreneur to publicize the course and make sure people understand that there is a course for sale. This effort can drain energy, and some of us are not sure how to advertise a class online.

Many entrepreneurs find that creating an online course is pleasurable since they get to design a class around something they are passionate about and interested in. They also capitalize on all the interest in online courses and enjoy a new source of profits. Entrepreneurs who design interesting, enjoyable courses also realize that their students are not just individuals. Often, companies and corporations purchase online courses for their employees so that they stay informed, educated, and on the cutting edge.

• How Can Entrepreneurs Sell Products Online?

Internet entrepreneurs do not only make profits based on their know-how and savvy course offerings. The original online entrepreneurs understood that selling products and goods via the web could also be an intelligent way to turn a profit.

There are two main methods that entrepreneurs use to sell products online. Entrepreneurs can sell products on their websites or use marketplaces like Amazon or eBay. Each method brings with it advantages and disadvantages.

Selling Inventory on the Entrepreneur’s Website

When business people sell goods from their websites, the concept is known as “private label.” The individual typically conducts market research, selects or invents a product, locates the demand, and contracts with a factory or another party to make the goods. Then, the entrepreneur sells it via their website.

Ideally, entrepreneurs create unique brands and establish themselves in the market. For example, Nike created running sneakers they imagined—and hoped—that people would covet, then sold them directly to their customers. The emphasis of this method is on coming up with and then creating or manufacturing a desirable item.

Drop-shipping is a term associated with this method, which also refers to the process in which a factory makes a product. Then the entrepreneur sells it online without holding any additional inventory.

Therefore, it is up to the entrepreneur to place the product in front of customers and bring them in by emphasizing the item’s low price.

However, some entrepreneurs are knowledgeable about their products and choose to create their own and then share them with customers. When entrepreneurs are certain there is demand for their products, using their website makes a lot of sense.

Using a Third-Party Marketplace

Some entrepreneurs find that the best starting option is selling their goods through 3rd party sites. Well-known online marketplaces such as Etsy, eBay, and Amazon offer sellers the chance to create listings, post pictures, and videos, and connect with customers in ways that some private websites simply cannot. Plus, websites like Amazon tap into a new and sizeable clientele already built-in.

For example, an eBay seller of sneakers can list a few pairs and check to see if there is demand for this particular type of footwear. As opposed to developing a new website and paying for its construction, the seller only needs to create a few listings and see what happens. If the sneakers do not sell, they can recalibrate and either try to sell different shoes or switch to selling something completely different.

While websites like Etsy charge sellers fees and percentages, they are typically small. The fees do not negate the ability to connect with customers and check the market in a low-risk manner.

Some entrepreneurs test the waters on Amazon and then move their sales to their website as profits and notoriety rise. Whatever choice entrepreneurs make, they should be familiar with drop-shipping and private-label selling, so they can decide what approach will work best for them as they enter the market.

How Can Entrepreneurs Sell a Service?

Our third option for new entrepreneurs who wish to start their careers on the right foot is to sell a service.

Typically, entrepreneurs who set their sights on selling a service instead of a product do not have much capital to work with upfront. However, even entrepreneurs with zero capital quickly find that to sell a service effectively, all one needs is a specific skill, a computer, and some inside industry know-how.

Being a freelancer gives entrepreneurs much freedom and very little responsibility. Contract workers, as they’re also known, can take the jobs they want and pass on the gigs they do not think will work for them. Successful freelancers become adept at offering their skills to various clients, bidding on jobs, and working quickly and effectively when it suits them.

While freelancers enjoy much control over their profits and hours, they sacrifice some of their money. Legitimate freelance websites charge fees and percentages to place freelancers and find them gigs, and that sacrifice is worth thinking about when contemplating a freelance career.

However, many entrepreneurs find freelancing the ideal side gig when they want to hold onto their full or part-time job. Many careful entrepreneurs continue to work their main jobs as they test the waters of new careers, and freelancing helps them do so safely and effectively.

Many entrepreneurs wonder what skills they need to be freelancers and what talents are the most popular. Luckily, the list ranges from writing, editing, and tutoring to design work and software development.

Remember that hard-working freelance workers make over $10,000 per month in some markets. Here are four of the top freelancing sites currently at the top of the freelance tables:

• Upwork
• PeoplePerHour
• Fiverr
• Freelancer

Now that we’ve discussed various ways entrepreneurs can easily create capital online, let’s move on to the small business world.

• What is a Small Business Entrepreneur?

We all know what small business owners are, and most of us would agree they play a valuable role in our economy. However, many of us are not certain what we mean when we mention “small business entrepreneurs.”

Small business entrepreneurs provide a valuable service to individuals or other small companies. Local, family-owned companies that employ 50 employees or less are usually labeled as small businesses.

For example, local landscaping companies are small businesses. By taking care of lawns and gardens in the community, they provide valuable services to homeowners.

Additionally, service businesses are ideal for individual entrepreneurs without capital who possess marketable skills. Small service businesses offer these unique entrepreneurs the chance to try out a business without taking on a world of debt.

Where Are Small Business Entrepreneurs Located?

Still unclear about where to find these small entrepreneurial businesses or what they look like in action? Take a trip to a local art festival or street market and observe the various people handing out samples of their homemade crafts, desserts, soap, and art. These are small business entrepreneurs at work.

When entrepreneurs go from selling their wares or services in person to selling them online, they transform from small business entrepreneurs to online small business entrepreneurs. For example, the musician who plays guitar at the art festival creates a website and labels himself an “Acoustic Wedding Guitarist.” The person selling their photos at the art fair labels themselves as a “Graduation Photographer” and collects gigs for local high school and college graduations with their slick new website.

Savvy positioning and smart labeling are very important for small business entrepreneurs, but marketing is also essential. For example, small business entrepreneurs market their businesses via the web and use local flea markets and chamber of commerce meetings. Or, they rely on guerilla marketing and post fliers at cafes and other shops in the local area.

Who Are Small Business Entrepreneurs?

Small business entrepreneurs are everywhere, making up most small companies and employing more than half the United States workforce. Small business entrepreneurs are carpenters, pharmacy owners, plumbers and electricians, grocers, butchers, artisans, and more.

Small business entrepreneurs are not interested in or motivated by chasing millions of dollars. Instead, they typically want to support their families and pay their bills. They have one or two talents or skills, and they use these skills to create a small business that is typically local in nature. However, our US history is full of small business entrepreneurs who started small and went on to create large, nationwide companies. These days, sometimes a hit YouTube or TikTok video is all it takes to transform a small local business into a nationwide corporation. Imagine that!

• What is the Home-based Entrepreneur?

Self-employed entrepreneurs who work from home are known as home-based entrepreneurs. Home-based entrepreneurship has become much more popular as of late, as so many of our formerly on-the-go tasks have moved online. We shop online, take classes via the web, and socialize online, so why not start a home-based business with the help of the web?

Home-based entrepreneurs come in all shapes and sizes. They are dog groomers, virtual assistants, drop-shippers, car detailers, pet sitters, landscapers, house cleaners, tutors, teachers, bookkeepers, and graphic designers; the list goes on and on. They mostly conduct business as individuals, though some employ a few employees, and they run the business from their home or home office. As a result, the business saves money in various ways, considering they do not need parking, advertising signs, a storefront, storage, and more. In addition, this specific group of entrepreneurs enjoys working alone and making their hours.

What else do home-based entrepreneurs say makes running the business from home worthwhile?

What Are the Advantages of Being a Home-Based Entrepreneur?

• No Commute to Work: Removing traffic time from the equation means spending more time on new products and ideas.

• Very Low Overhead: At-home entrepreneurs save money on typical business overhead costs, and they are therefore able to increase profit margins.

• Tax Write-Offs: home-based business people not only do not have to pay any “corporate” expenses, but they also can deduct important things such as office space, utility costs, maintenance and renovation costs, and more.

What Are the Drawbacks for At-Home Entrepreneurs?

There are disadvantages for all the different types of entrepreneurs, and home-based entrepreneurs are no different.

• Home Distractions: Individuals working at home must deal with children, chores, and more. Sometimes, leaving to go to the office provides an escape from normal life and a chance to focus on work for a few hours.

• Loneliness: Some individuals miss the hustle and bustle of the office and the networking opportunities.
• Limited Marketing Opportunities: Some entrepreneurs claim they cannot make valuable connections at home, staring at the same walls all day without anyone to speak with. This lack of resources can be a drawback for businesspeople who are not adept at networking online.

• What is an Internal Entrepreneur?

Internal entrepreneurs are business people with all the talents of successful, enterprising individuals who choose to work for a larger organization or company. Sometimes referred to as “intrapreneurs,” these individuals use their talents to help take outside companies to the next level. Often, they are paid handsomely for their creativity, determination, and innovative ideas.

Many successful companies rely on internal entrepreneurs to find bold new directions for the business. These entrepreneurs are often praised for their vision and are such valuable assets that large companies do not want to let them go.

What Defines Internal Entrepreneurs?

As we have mentioned, all entrepreneurs are unique, and internal entrepreneurs are different. However, here are some of their defining traits:

• They take ownership of their successes and failures
• They are accountable
• They have a strong sense of focus
• They are self-motivated
• They use company resources carefully
• They are leaders
• They train others to lead
• They produce high-quality, innovative work

Let us be clear here: the internal entrepreneur does not fit within traditional definitions. Rather, the internal businessperson reflects personal qualities that are entrepreneurial. These valuable employees believe in the company and report to work without personal risk.

In short, when a company’s workers consider themselves “entrepreneurs” who think outside the box and are determined to succeed, the company should hold onto these internal entrepreneurs.

• What is a Social Influencer Entrepreneur?

These days, influencers are everywhere. They create viral videos and inspire new social media posts daily, and the most successful influencers can change a business’s profits and cause the stock market to rise and fall.

Influencers can create an audience for a particular item, topic, belief system, or fad and then sell exposure to an audience. For example, fitness influencers inspire people to work out and maintain positive body images. In addition, social media influencers who have proven their popularity based on their personas sometimes work for local businesses such as nightclubs or sports leagues.

Years ago, our influencers were mainly Hollywood actors and musicians, but these days people find fame for various reasons, from fashion to status to a unique talent.

Social influencer entrepreneurs have figured out a way to market themselves. They are often paid for speeches, appearances, social media posts, and more. This strategy makes their time and efforts valuable, at least while in fashion. However, one of the disadvantages to working socially in this manner is that much popularity is fleeting, as it rises and falls with the swings of pop culture.

How Do Social Media Entrepreneurs Create Revenue?

Social media entrepreneurs use four main techniques to create capital:

• Audio (For example, Podcasts)

• Writing (For example, blogging)

• Public speaking

• Video (for example, Vlogging)

Therefore, influencer entrepreneurs have a loyal audience and use this loyalty to create revenue and keep their careers moving upward. While internet entrepreneurs sell products, information, or specific services, influencers share expertise for a fee.

Many social influencer entrepreneurs also use a new strategy: they share their knowledge for free, but then advertisers pay them for access to their audiences.

What is a Lifestyle Entrepreneur?

Lifestyle entrepreneurs are sometimes called “digital nomads.” Often, these entrepreneurs already have the capital or grew up with the good fortune not to worry about money.

Lifestyle entrepreneurs have the means to live an enjoyable lifestyle, and they do so. These unique individuals are not worried about making profits, nor do they dedicate their business pursuits solely to profits. Instead, they want to enjoy their lives, which often means traveling to exotic places, staying mobile and not being tied down, and maximizing the enjoyment they experience daily.

The actual definition of being a lifestyle entrepreneur can be difficult to understand. Consider that the lifestyle businessperson creates a company dedicated to their enjoyment, not making money. They are typically full of passion and excitement about life, and they bring this spirit to their entrepreneurial pursuits.

At some point, lifestyle entrepreneurs often focus on selling their elegant lifestyle to the masses through social media and other mediums. So they publish books, create television shows, and have ballparks named after them.

What Are the Important Habits of Lifestyle Entrepreneurs? 

Lifestyle entrepreneurs are a group of eclectic individuals, but they typically:

• Operate individually and without help
• Do not have business partners
• Hire freelancers to help with the business
• Seek to create an environment where they can set their schedule
• Seek to live where they desire to and not where they have to
• Are flexible and live life passionately and for enjoyment
• Practice a minimalist lifestyle (but retain some wealth)
• Stay mobile as opposed to settling down

How Do Lifestyle Entrepreneurs Create Capital?

Angel investors typically create their initial companies based on their life passions. These companies are usually online and include work such as eCommerce selling, freelance writing and blogging, online courses, and more.

If becoming a lifestyle entrepreneur sounds enticing, just remember that most entrepreneurs began their careers with a good amount of capital, keeping risks low. But why not give it a try?

• What is an Investor Entrepreneur?

Investor Entrepreneurs are associated with Silicon Valley and are known as “Angel Investors.” These unique entrepreneurs earned money starting various companies, and now they seek to help the next generation through their investments.

Investor entrepreneurs have made powerful, valuable relationships with industry insiders from all over, and they rely on these relationships to help small companies earn new funding. However, individuals who are averse to risk should skip to the next category immediately because, for the entirety of their careers, investor entrepreneurs take massive risks. Unfortunately, some suffer greatly from these risks, losing their hard-earned capital.

How Do Entrepreneurs Become Angel Investors?

Here are a few suggestions for entrepreneurs who want to be angel investors. Entrepreneurs should:

• Understand the risk most of their income

• Understand that to try being an investor entrepreneur; they should earn upwards of $200 000 annually or be worth about one million dollars.

• Build a 13-15 company portfolio

• Focus the “angel” portfolio on only ten percent of assets

Keep in mind that successful investor entrepreneurs are rare. These business people combined hard work with market knowledge. They made it to the top based on many factors, including the health of the economy at the time and government regulations.

What Kind of Entrepreneur Should Individuals Strive to Become?

Many entrepreneurs are positive that they want to go into business for themselves. They want to create their hours and be masters of their destinies. However, they are not sure exactly how to do so and have not taken action to start the process.

If this sound like you, do not be ashamed or disillusioned. All successful entrepreneurs began with abstract dreams that slowly became more solid. Many of us dream of running our own business from home, creating the next service everyone wants, such as Uber, or inventing the next hit smartphone app.

However, most people struggle with following through on their ideas.

As you look back through this list, take note of the different types of entrepreneurs. There is no doubt you will discover more types of entrepreneurs on your business journey, but right now, where do you fit in?

Is there a way to combine some of these traits and remove those that do not work for you?

The point of this list is not only to show you the different types of entrepreneurs. The point of this article is to demonstrate that it takes all different types of entrepreneurs to create a humming economy and that now more than ever, the definition of an “entrepreneur” is impermanent and everchanging.

So, what kind of entrepreneur do you want to be? We hope you have the courage and the strength to create your new definition of the modern-day entrepreneur and that your talents and skills lead you to become the absolute best type of businessperson: a successful one.

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