It’s important to recognize that entrepreneurship is not a one-size-fits-all endeavor, and people may be drawn to it for various reasons. There are different types of entrepreneurs.
Everyone wants to be an entrepreneur because entrepreneurship brings fame, respect, and money. Having all of these is like a dream come true for people, especially the young population. Honestly, everyone wants to be famous and rich. The US Business Formation Statistics (BFS) estimates that 5.05 million business applications were submitted in 2022.
The success rate of startups was 10% during 2019 before covid. It simply means that out of ten entrepreneurs, only one will succeed. Other popular jobs like engineering and doctors have such a healthy success rate. I think entrepreneurship has one of the worst success rates amongst any other occupation. Still, the young population is driving crazy behind being an entrepreneur.
The reasons why people are choosing entrepreneurship are very different. I have categorized all those people based on their reasons for entering the startup world. I want to highlight the different types of mindsets behind being an entrepreneur. If you are an entrepreneur, you must check what category of entrepreneurs is your match.
Five types of Entrepreneurs based on Mindset
There are five types of entrepreneurs based on the mindset for entering into the startup world.
Bandwagon Entrepreneur
While planning a party, how do you choose the best bar? I guess, read reviews of the best bars in the town. The first thing you look at is which bar has the most reviews. Subconsciously, you are trying to figure out the bar through the number of people visiting it. It is applicable even on the phone you buy, video streaming you choose, apps you download, and many other things. When you choose something because everyone else is choosing, it is a bandwagon effect.
The people who want to be an entrepreneur just because everyone else is doing the same thing are bandwagon entrepreneurs. They don’t know what they are doing. It is like a sheep herd, everyone is following the person next to them. There is rarely any probability of success for such entrepreneurs. This type of person generally gets out of the wagon and goes to their previous life.
FOMO Entrepreneur
The feeling of being left alone is one of the causes of being an entrepreneur. FOMO means, Feeling Of Missing Out. These are very similar to the Bandwagon entrepreneurs. They feel entrepreneurship is missing from their lives, and they should pursue it. People hope that being an entrepreneur will make their lives better, but reality hits them hard. These types of entrepreneurs are quick decision-makers and do not carry patience. After spending some time, they realize that entrepreneurship is not easy, and they jump to something else.
Glamour Entrepreneur
News, media, interviews, articles, awards, verified Instagram, and many more are proud moments. It is not easy for people to reach this level. I am telling you this because it looks very glamorous outside, but successful types of entrepreneurs pay for it with their sweat and blood.
Most people who want to become entrepreneurs are chasing this glamorous lifestyle, hence I call them Glamor Entrepreneurs. These people are looking for shortcuts, and they exit after getting to know the real struggle of being an entrepreneur.
Frustrated Entrepreneur
Everyone knows such people who are always complaining about everything. They are generally frustrated with their daily schedule and their life. These people suck at their daily jobs and are frustrated by their boss. They find fundraising and getting rich quickly fancy. Since their purpose was to get out of their frustrated 9 to 5 job, they never succeeded in entrepreneurship. Being an entrepreneur is not everyone’s cup of tea. These people soon realize the mistake. They then get out of entrepreneurship frustrated.
Unique Entrepreneur
The biggest reason everyone wants to become an entrepreneur is that they think they are unique. Most importantly, they have a unique idea, and investors will throw millions of dollars blah blah blah. I call them unique entrepreneurs because that’s what they think about themselves and their startup idea. The fact is their idea is rarely different. There is always someone out there working on the same idea as you. A unique entrepreneur lacks research and is high on overconfidence.
Some types of entrepreneurs are unique, and they do have an original idea. But, such entrepreneurs also understand the process of entrepreneurship. They are not on the bandwagon, not frustrated, not in FOMO, and not behind the glamor of entrepreneurship. It is more about mindset. Everyone who wants to be an entrepreneur should have the right mindset. Even if you fall under one of the types of entrepreneurs we have just discussed, you can become a successful businessperson by working on your approach towards entrepreneurship. I want to share some tips on establishing the right mindset for everyone wanting to be an entrepreneur.
12 types of Entrepreneurs based on characteristics
Entrepreneurship is a bit like entering a world filled with business superheroes. Each entrepreneur possesses their own set of superpowers – unique qualities that enable them to do extraordinary things in the business realm. Imagine it as being part of a fantastic superhero team, but within the world of business. So, let’s take a closer look at these 12 types of entrepreneurs based on their characteristics.
Innovative Entrepreneurs
Think of these entrepreneurs as the “Idea Makers.” They’re like the creative geniuses who conjure up entirely new concepts. It’s a bit like inventing and aiming for something that no one has ever seen before. Just like superheroes who craft incredible gadgets, consider them as the Tony Starks of the business world.
Risk-Taking Entrepreneurs
Now, let’s dive into the “Brave Adventurers.” These entrepreneurs are akin to the superheroes embarking on daring quests. They aren’t afraid to take substantial risks in the business world. Even if things go off the track, they are optimistic and willing to take risks, believe in themselves and become even better at what they do. They’re somewhat like the heroes from our favorite adventure tales.
Visionary Entrepreneurs
“Visionary Entrepreneurs” are a bit like those heroes with the ability to see into the future. They anticipate what people will want even before people themselves realize it. They create things that capture everyone’s hearts. It’s somewhat akin to being magical dream-weavers.
Adaptive Entrepreneurs
These entrepreneurs are the “Quick Changers” of the business world. They can pivot their strategies rapidly, much like heroes adapting their superpowers. They are good at quickly changing their plan according to what’s happening in the world. Picture them as the shape-shifters in the superhero world.
Persistent Entrepreneurs
“Never Give Up” entrepreneurs are the ones who keep pushing forward, just like superheroes who never give up on their missions. Even when faced with a difficult situation, they tend to keep following their path until they finally achieve their goal. Their “Never Give Up” attitude inspires their team members and keeps the hustle going.
Resourceful Entrepreneurs
“Problem Solver” entrepreneurs are like the heroes who wield their tools and gadgets to fix things. They’re brilliant at finding solutions to complex problems, much like superheroes utilizing their skills to assist others in fixing things.
Resilient Entrepreneurs
“Resilient” entrepreneurs are akin to cosmic phoenixes in the business world. They can bounce back from tough times and learn from their mistakes, much like heroes who rise again after falling.
Customer-Centric Entrepreneurs
“Customer-Centric” entrepreneurs place great importance on making people happy. Like heroes who save the lives of those in need, they produce goods and services that people genuinely love and desire. They’re thinking of ways to make people smile all the time.
Inspiring Leaders
“Team Captain” entrepreneurs are like the leaders of a superhero squad. They excel at uniting their team to work together and achieve remarkable feats, much like the leaders in our cherished superhero stories.
Financially Savvy Entrepreneurs
These entrepreneurs are like wizards when it comes to handling finances. They possess the wisdom to use money wisely and make sound decisions, much like magical wizards who hold the secrets of their craft. They ensure their superhero teams remain strong and successful.
Networkers
“Friendship Heroes” are experts at forming new friendships and building strong relationships. They bring people together to support one another, much like heroes who band together to save the day.
Passionate Entrepreneurs
“Dream Chaser” entrepreneurs follow their hearts and wholeheartedly love what they do. They resemble heroes who ardently pursue their dreams, no matter what. Their passion empowers them to achieve remarkable things and inspire others.
So, much like superheroes with their unique powers, these superhero entrepreneurs possess special skills that enable them to accomplish incredible feats in the business world. The good news is that you can be a superhero entrepreneur too by unleashing your own unique powers! It’s akin to joining an extraordinary superhero team in the exciting realm of business.
The right approach for everyone who wants to be an Entrepreneur
An entrepreneur is an entrepreneur by his state of mind and his actions. Real entrepreneurs know that entrepreneurship is a tough journey. They like to solve the real problems of society. It’s not money, fame, or respect that drives them to work hard and consistently. These people are very passionate about what they do, and they love doing their work.
Startups do not have to be unique, but they should be better. The objective behind becoming an entrepreneur should be the betterment of the world. If you love the problem, you will keep working towards fixing it. That should be the real reason for being an entrepreneur. Once you show your ability towards solving the issue, investors will automatically invest in your startup. People need to understand that money is secondary.
Conclusion
To summarize what we have just discussed, everyone who wants to be an entrepreneur needs to focus on their work. Don’t let the charming fundraising and other distractions affect your work. Even when I chose to be an entrepreneur, I did not know about the journey. The time and experience are invaluable, and you will learn a lot about yourself throughout your entrepreneurship journey. I hope your friends will enjoy this article as much as you did. Feel free to share this valuable information with your entrepreneur friends and co-founders.