The Different Types of Entrepreneurship

When you think about starting a business, Elon Musk, Jeff Bezos, or Richard Branson may be a few entrepreneurship examples that spring to mind. While they each have successful businesses, those three aren't your everyday entrepreneurs — think of the average coffee shop owner struggling to get their new venture going or the would-be entrepreneurs who are monetizing a favorite hobby by making it a side-hustle.

Knowing what the different types of entrepreneurship are when you're setting up a new business can help you get your priorities straight. But the kinds of entrepreneurship that exist vary, so which one are you?

8 Different Types of Entrepreneurs

There are generally eight entrepreneurship types. Here's a closer look at each one to help you figure out which one fits you best.

1. Scalable Startup

A scalable startup is a rapid growth company that invests heavily to reach mass market adoption in a large total addressable market. Entrepreneurial resources usually come from venture capital firms that understand the vision and the potential for huge profits down the line. Typically, scalable startup entrepreneurship aims to identify any problems that exist in the industry and develop brand new solutions for them.

With this entrepreneurship type, you'll commonly see a scalable startup popping up out of the woodwork and suddenly everyone will be talking about it. The startup can generate a lot of buzz simply because of its unmatched use case. Finding product-market-fit is crucial to all scalable startups that want to be successful. Once realized, you can dedicate time and resources to research while continuously benefiting from economies of scale organically.

There’s no better example than Tesla to describe a scalable startup that challenged the status quo. What started as an underestimated electric vehicle alternative to traditional internal combustion engine vehicles went on to become an international, multi-billion-dollar spectacle.

2. Small Business Entrepreneurship

Small business entrepreneurship is when you decide to start your own business, but the opportunities for huge growth may be more limited depending on industry or geography. This type of entrepreneur includes mechanics who open their own shop or a consultant who has specialized skills in tax compliance.

In this case, you don’t need to be good at everything. You just need to know your own local market. Usually, a small business entrepreneur will have one storefront and a handful of employees to keep it running but they don’t intend to open 100 new locations per year like a chain store would.

3. Solopreneurship

A solopreneur is similar to a small business entrepreneur, but instead of hiring full-time employees to take a load off, they go at it alone. As a solopreneur, you are the founder, CEO, HR department, and sales team all rolled into one — in other words, full management is on you. If you are a solopreneur