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4 Types of Entrepreneurs and Their Features

News & Blog

There are four types of entrepreneurs which are described below: small business, scalable, large, and social. These four types of entrepreneurs may have different approaches to business, but they all have similar things in common: resilience, agility, tenacity, and passion.

Small Business Entrepreneur

A small business entrepreneur operates a gas station, a restaurant, a laundromat, or other similar single entity business venture. It is small scale and often owned as a sole proprietor or limited partnership.

Scalable Startup Entrepreneur

Scalability is related to how a business grows over time. A scalable business might start as a single individual operating an office that eventually leads to offering similar services in multiple offices across a region. Tax preparation is an example of a scalable business model. You start with one tax preparer filing tax returns for a certain number of clients. Eventually that person gets busy enough where other locations are opened and a staff is trained to manage the work flow of those tax offices. There is typically a single primary location where the most important elements of the business are completed, such as data storage and human resource management. This business is typically operated as a Limited Liability Corporation (LLC).

Large Company Entrepreneur

Large company entrepreneurship is about risk taking and disruptive innovation within a large corporation. Just because a large company like Volkswagen has an established customer base and has the ability to throw millions of dollars into advertising doesn’t mean the company will exist in a generation or two. There are a number of large companies that no longer exist, such as Blockbuster Video, Toys R Us, Circuit City, Montgomery Ward, Pan Am, Standard Oil, DeLorean Motor Company, and Washington Mutual. Even large companies have to innovate and sometimes change directions to remain competitive. Apple Inc under the direction of Steve Jobs dominated the consumer electronics market. Under its new leadership, Apple is not a consistent innovator like it was. Large companies are often operated as a C-corporation.

Social Entrepreneur

The social entrepreneur is more interested in transforming lives than making money. These types of businesses range in size from very small to very large. The common focus is helping people. The business can be operated as a for profit corporation or a non-profit organization. Some examples of social focused businesses include: Make a Wish Foundation, Ronald McDonald House, St Jude Medical Center, Disney Corp, Facebook, and Chick Fil-A. 1040TaxBiz offers entrepreneurs an opportunity to start and operate a tax preparation office. Contact them for more information. https://www.1040taxbiz.com/contact-us/

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