Types of Entrepreneur – Based on Circumstances
Habitual Entrepreneurs
Habitual entrepreneurs are individuals who hold or have held an ownership stake in two or more businesses. We can divide habitual entrepreneurs into two categories: serial entrepreneurs and portfolio entrepreneurs. For more information on the comparison between these two categories, see Westhead and Wright. (Source: Paul Westhead & Mike Wright, The Habitual Entrepreneur (2017)).
Serial Entrepreneurs
Serial entrepreneurs have sold or closed a business and started another. Serial entrepreneurs are fun clients as I always found it interesting to see what they would be up to next.
Portfolio Entrepreneurs
Portfolio entrepreneurs have ownership interests or stakes in more than one business at the same time. One can see why the term “portfolio” is used.
Entrepreneurs by Necessity
Some individuals have difficulty finding a job or have the time to work as an employee for a company. For example, millions of Americans are without jobs due to COVID-19. Once the pandemic subsides, some will be able to regain employment, however, some will not be so fortunate. It is likely that many individuals over age 50 will have more difficulty in securing full-time employment once the pandemic is over. Women who predominately carry the family care-giving load may not be able to manage family obligations and a full-time job. No matter the reason, some people will be forced to start their own business out of necessity. Entrepreneurs by necessity may become independent contractors like freelance work, start a nonemployer company (one that does hire employees) or start an employer company (one that hires employees).
💡Think about the different needs that an entrepreneur by necessity may have as compared to habitual entrepreneurs. Also give some thought as to which types of entrepreneurs you think you’d like to represent, and be prepared to disclose why you made this choice.