What is entrepreneurship?
According to the Cambridge Dictionary, this is the official definition of entrepreneurship:
Skill in starting new businesses, especially when this involves seeing new opportunities.
With this definition in mind, anybody could technically become an entrepreneur if they are willing to seek out opportunities and start a business. However, there are certain characteristics and habits that will make you more likely to succeed as an entrepreneur.
I’ve created a comprehensive guide with all the steps you need to become an entrepreneur.
What are the different types of entrepreneurship?
Entrepreneurs come from all walks of life, and just like the businesses they run, each one is unique. These are the top 50 entrepreneurs I’m currently following, and each one is different from the next.
They do, however, fit into one of the following categories. Each entrepreneur tends to have their own preference, or they may even switch between the three at different stages of their career.
A solopreneur is an entrepreneur who owns and runs their business alone. They’re often called a ‘jack of all traits’ or described as wearing many hats, as they take care of all aspects of their business – and in return take all of the profit.
Common characteristics of a solopreneur:
Examples of a solopreneur:
The business owner
A business owner is somebody who owns and runs their own business. Although being a solopreneur is also owning a business, we are specifically talking about businesses with a team of people in this category.
These are the founders who grow an organization into something bigger than themselves. They provide jobs for other people, and in return, their output is usually larger than what they could achieve alone.
Common characteristics of a business owner:
- Natural leaders
Examples of a business owner:
- Start-up founders
- Online businesses
- Bricks and mortar businesses
The serial founder
Many of us know a ‘serial founder’, they are the people who are always on the hunt for their next business opportunity and take entrepreneurship to another level. They may start new businesses after selling up, or choose to run them side by side.
Serial founders are often striving towards creating passive income. However, instead of using that passive income to make money in their sleep, they prefer to get started on their next venture.
Common characteristics of a serial founder:
Examples of a serial founder:
- Sells their business at a chosen exit point
- Sells shares of their business
- Invests in other businesses
The pros & cons of entrepreneurship
Just like anything in life, entrepreneurship comes with pros and cons. For true entrepreneurs, the pros far outweigh the cons of any other career path, making them feel even more drawn to this way of life.
However, it’s still important to consider both sides of the entrepreneurship coin and decide if this is the right option for you.
Pros of entrepreneurship
- The sky is the limit. The only boundaries to your success are set by you, so there is nothing you cannot achieve.
- More freedom. Whether it’s the freedom to spend more time with your family and friends once you have become successful or to choose when you retire, entrepreneurship equals a lot more choice.
- You get to work on your passion every day. You’re not reliant on a boss or anybody else to dictate how you spend your time.
Cons to becoming an entrepreneur
- Giving up some short-term luxuries. It’s common to have your finances, social life, and even your health be impacted by your entrepreneurship journey.
- Entrepreneurship comes with risk. Not everyone becomes a success story, and you are likely to face failures along the way.
- You don’t have a safety net. Unlike your employed peers, if things go wrong you don’t have a boss to pick up the pieces or continue paying your comfortable salary. The buck starts and ends with you.