Different Types of Entrepreneur

An entrepreneur is someone who creates new products or services and markets them. They are generally seen as being separate from the product or service creation and often use their personal assets to finance their ventures. Most entrepreneurs start with a small business idea that combines either a talent or a skill with a technology or process that is unique. Once they have honed their skills or developed a winning business idea, they usually look for funding sources to capitalize on their ideas. Successful entrepreneurs seek venture capital, debt, and/or staff investment.

Many young people today are pursuing entrepreneurial careers, often because it is a more interesting way to get a job and earn an income. While others are forced to take courses at night to earn an education that would have been unavailable to them otherwise, others are able to start their own businesses with very little startup money. In some cases, entrepreneurship may be necessary to ensure one’s survival in the event that there is a sudden or unforeseen disaster. Because most new businesses fail within the first two years, it is important that the young entrepreneur has a business plan and the determination to succeed. The entrepreneurial spirit comes through strong leadership and the willingness to explore new ways of doing things and increasing customer service levels.

Often, an entrepreneur will use their own talents or abilities to help develop new ideas. They can do this by acquiring new knowledge through field research or studying a related industry. For instance, an engineer may discover a problem or possibility that can be solved by developing a better system. Technicians or scientists may find ways to do something differently than their competitors. Entrepreneurs can also discover new business opportunities that they could not have imagined before, using resources such as the Internet and networked partners.

The entrepreneurial spirit also encourages new business venture leaders to think big. In fact, most entrepreneurs work toward some type of financial or personal independence. This is especially true of those who have built successful networks of contacts and customers. While it may be tempting to give up on long-term goals, many entrepreneurs work to make their dreams become reality.

As they work toward making their ideas a reality, entrepreneurs will meet with various venture capitalists. Venture capitalists are people who have capital to invest in new business ventures. They often work with small businesses that lack the experience or cash flow to obtain a loan from regular banks or credit unions. (Venture capitalists typically provide seed money for a business startup.) As they review potential business ventures, venture capitalists will evaluate entrepreneurs’ strengths and determine if they have the right combination of skills and resources to generate large profits.

Entrepreneurship encompasses a range of different types of people. Some entrepreneurs work in the service or product markets, building their networks of clients through marketing or public relations efforts. Others build businesses in the social entrepreneurship space, working with groups of people who have similar values as their own. Still others specialize in technology entrepreneurship, working with software developers or designers on the forefront of new applications. Regardless of the area of entrepreneurship you choose, it’s important to understand that you are part of a dynamic group of people who are all contributing to the entrepreneurial explosion.