Have you ever dreamed of starting your own business? If so, you’re not alone. The entrepreneurial spirit is alive and well in Australia and entrepreneurs come in many different shapes and sizes.
What kind are you?
Let’s take an in-depth look at the different types of entrepreneurs and explore which might best fit your lifestyle and goals.
Just as it sounds, a solopreneur goes it alone. They usually work as a freelancer or consultant, providing services that don’t require hiring employees. Typically, they work from home or some other remote location such as a co-working space, which enables them to save money on costly office space and setting up infrastructure.
Advantage: The main advantage of being a solopreneur is that start-up costs and ongoing overheads are usually minimal.
The downside: Solopreneurs have to rely solely on their own skills and resources to get things done, and this can make running a business more difficult.
Bootstrappers are entrepreneurs who self-finance their businesses rather than relying on outside investors, or loans from banks. This type of enterprise starts small and grows organically, as funding permits. Bootstrappers are often self-reliant; they prefer to build without accumulating debt or giving away equity in exchange for capital investments. They also tend to be creative problem solvers who can find innovative solutions to overcoming financial obstacles.
Advantage: Bootstrappers maintain control over their business, even while growing it quickly.
The downside: Bootstrapping requires significant personal commitment, time, and energy, and these resources may only be feasible for some depending on their current situation.
Intrapreneurs create an enterprise within a larger organisation instead of working independently as an outside contractor or consultant. This could mean launching a new product line within an established company or creating an entirely new division within an existing business structure.
Advantage: Intrapreneurs have access to existing resources, such as employees and infrastructure, which would not be available to them.
The downside: Intrapreneurs have to cope with the bureaucracy associated with large organisations, which can sometimes slow down decision-making processes and limit creativity.
The Tech Entrepreneur
An individual who starts and runs a business in the technology space is considered a tech entrepreneur. Their product could be software, hardware, or cloud-based, and their aim may be to disrupt or transform an existing market.
Advantage: Tech entrepreneurs have the potential to generate massive revenue and high profit thanks to access to global markets and the ability to scale their products and services rapidly.
The downside: Competition in the tech space is fierce and timing is everything. A tech entrepreneur has to be able to deal with high risk, technological obsolescence, huge financial investment, and enormous challenges around data privacy and security.
The Lifestyle Entrepreneur
Someone whose main aim in establishing a business is to create and maintain their desired lifestyle instead of making money is a lifestyle entrepreneur.
Advantage: With money not a motivating factor, the lifestyle entrepreneur enjoys greater freedom, flexibility and autonomy. Often, lifestyle entrepreneurs find themselves making a significant income anyway, while following their passion and staying true to their values.
The downside: Financial stability can be difficult to achieve if this kind of entrepreneur is more committed to their lifestyle than their business.
An enterprising individual who combines motherhood with her business pursuits is called a mumpreneur. She may invent or develop a product, offer freelance services, or establish a business such as drop-shipping or on-selling products she purchases wholesale.
Advantage: Being able to work around her family’s needs can be a compelling factor for a mumpreneur. Owning a business can be a way of gaining financial independence and can provide a woman with creative fulfillment, especially if the business involves one of her passions.
The downside: For most mumpreneurs, family comes first and this can present business challenges around finances, time management and deadlines. Financial risk and having less time for self-care are also common detractors for this kind of entrepreneur.
A person who starts and manages multiple businesses, some simultaneously, is considered a serial entrepreneur. This type of entrepreneur is always on the lookout for new opportunities and is usually quite successful. They may build up a business specifically to sell, or they may create a portfolio of businesses and appoint other people to run them.
Advantage: To become a serial entrepreneur, an individual will have crafted a huge network of resources and contacts they can turn to. There is enormous potential for financial success, and they enjoy the creative freedom that comes with being in charge.
The downside: Serial entrepreneurs can fall victim to burnout if they spread themselves too thinly. Business can wreak havoc on their personal relationships, and lack of focus can be a problem if the businesses are too diverse.
The Green Entrepreneur
Someone who creates businesses focused on environmental sustainability is known as a green entrepreneur. Their enterprises centre around things like renewable energy, recycling and waste reduction, eco-friendly products and sustainable fashion.
Advantage: Green entrepreneurs are purpose-driven and desire to make a meaningful change in the world. They derive huge reward and fulfillment from devising sustainable solutions. Climate change is a booming sector and the skyrocketing demand for socially responsible products can be extremely profitable.
The downside: Green businesses can face high competition in the market, which can make it difficult to stand out. Regulatory challenges around environmental and social compliance can cause significant complications, and even though sustainability is a growing sector, it’s still in its infancy compared to the mainstream market.
Understanding the different types of entrepreneurs is essential when determining which path is right for you when starting your business venture. You might choose to go it alone as a solopreneur, finance your experience through bootstrapping, or launch something within an existing organisation as an intrapreneur. Understanding your strengths and weaknesses is key to making the best possible decision for yourself!
If you're looking to learn more about starting a business or being an entrepreneur, look no further than MiTraining's nationally accredited and fully online BSB30220 Certificate III in Entrepreneurship and New Business.