1. Small Business Entrepreneurship
These are classified as your local grocery store, butcher, hairdresser. The only capital available to them was their own savings and what they could borrow from relatives. When a profit is made, the cash flows to feed their family. When business was bad they figured out why, adapted and worked harder still.
2. Scalable Startup Entrepreneurship
Founded in small home offices, made personalized products assembled in a just-in-time factory that today delivers a customized gift each second. Once they found a profitable business model they realized that scale required external venture capital to fuel rapid expansion. With venture capital came accountability to board members, forecasts, and other people’s agendas. Success for a scalable startup is a three-times (or more) return on the investor’s money – either by a public offering of stock or by selling the company.
3. Large Company Entrepreneurship
At the end of 1980, IBM decided to compete in the rapidly growing personal computer market. They were smart enough to realize that IBM’s existing processes and procedures wouldn’t be agile enough to innovate in this new market. The company established their new PC division (called Entry Systems). Success for this new division meant generating substantial revenue and profit for company.
4. Social Entrepreneurship
A different bread of entrepreneurs, receiving finance from banks, working without receiving a salary and focusing on scalability, asset leverage, return on investment and growth metrics.
If you put the four entrepreneurs in the room you would understand what they had in common- they were resilient, agile, tenacious and passionate – the four most common traits of any class of entrepreneur.
Also in common, each of their businesses initially were searching for a business model, and each was instinctively executing a customer discovery and validation process. Yet there are obvious differences in each type; personal risk, size of vision and goal.
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