Choosing the correct type of entrepreneurship is crucial when starting a business. There are ten main types of entrepreneurship: small business, scalable startup, intrapreneurship, large company, imitative, innovative, buyer, researcher, hustler, and social entrepreneurship. Each has its characteristics, popularity, and ease of starting up.

Entrepreneurship refers to creating, launching and running a new business, which is often initially a small business. It involves identifying opportunities, developing ideas, and taking on financial risks in the hopes of profit. According to a study by the Global Entrepreneurship Monitor, the most common types of entrepreneurship globally are small business entrepreneurship (69% of entrepreneurs) and intrapreneurship within existing organisations (21%). For women specifically, a 2019 study found that the most popular types were small business (61%), social (22%), and innovative entrepreneurship (17%).

Choosing the optimal type of entrepreneurship is vital, as it shapes your business model, target market, funding needs, and growth potential. Key factors include your skills, interests, resources, and the market demand for your offering. Getting guidance from a business coach can provide valuable perspective on aligning your strengths with the right entrepreneurial path.

1. Small business entrepreneurship

Small business entrepreneurship involves starting and running your own business, often with a small team or as a solo founder. Key characteristics include serving a local market, requiring lower startup capital, and offering a product or service based on an established market need. Many choose this type for its autonomy, flexibility, and ability to pursue a passion. Small businesses represent the vast majority of companies, though many stay small. Founders are responsible for all aspects of the business. Starting up requires developing a solid business plan, securing funding, and wearing many hats.

2. Scalable startup entrepreneurship

Scalable startups aim to increase and disrupt an industry. They are designed to scale and require significant capital to fuel growth. Founders choose this path when they have an innovative, technology-driven idea with high growth potential. Scalable startups are a small portion of entrepreneurial ventures but attract considerable investment. Founders need strong business acumen and the ability to pitch and raise sizable funding. Starting up requires extensive market research, infrastructure, and a team to enable exponential growth.

3. Intrapreneurship

Intrapreneurship is acting like an entrepreneur within an established company. Intrapreneurs are tasked with developing new products, services or processes to create value and generate revenue. This type leverages the resources and security of an existing business while allowing for entrepreneurial creativity. It has grown as companies seek to foster innovation. Intrapreneurs are responsible for convincing leadership and bringing ideas to fruition. The ease of starting up depends on the receptiveness of one's organisation but offers a good bridge for aspiring entrepreneurs.

4. Large company entrepreneurship

Large company entrepreneurship is starting a new business division within a large corporation to enter a new market or develop a new product. It combines a startup's agility with an established company's resources. Popularised by tech giants like Google, this type allows companies to stay competitive by constantly innovating. A large company entrepreneur needs to navigate bureaucracy while moving fast. Starting up requires significant planning and buy-in but benefits from internal resources.

5. Imitative entrepreneurship

Imitative entrepreneurship entails copying an existing business idea but improving on it or bringing it to a new market. Rather than inventing something new, it capitalises on proven demand. This type is prevalent, especially for everyday local businesses. Imitative entrepreneurs tweak and refine a model based on competitor analysis. Starting up with an established blueprint is relatively straightforward, though differentiating is critical.

6. Innovative entrepreneurship

Innovative entrepreneurship involves developing a unique invention or offering that disrupts the market. It's defined by new technologies, products, services or processes that meet a need in a novel way. An inventive spirit and curiosity drive innovative entrepreneurs. This type is admired but rarer, given the challenge of true innovation. Founders need ingenuity, persistence and often specialised skills. Starting up requires extensive R&D and patience for adoption but offers outsized financial and social impact potential.

7. Buyer entrepreneurship

In buyer entrepreneurship, one purchases an existing business rather than starting from scratch. It allows entrepreneurs to become their boss and benefit from an established brand, customer base, and cash flow. Buyers may look for undervalued businesses they can optimise. It's increasingly popular as an accessible path to ownership, especially as more baby boomers retire. Responsibilities include assessing a business's health, transferring ownership, and implementing growth strategies. The ease of starting up depends on financing and the availability of viable companies to purchase.

8. Researcher entrepreneurship

Researcher entrepreneurship refers to commercialising new knowledge and inventions developed through scientific research. It's practised at universities, institutes, and research and development companies. Researchers may start a business to bring their innovations to market. Fueled by technology transfer and incubators, this type aims to translate discoveries into societal impact. Researchers face the challenge of becoming business-savvy. Starting involves validating commercial potential, prototyping, and bridging the lab and industry.

9. Hustler entrepreneurship

Hustler entrepreneurs spot timely market opportunities and launch lean businesses to capitalise on them. They are defined by their speed, agility and ability to pivot. Hustlers often juggle multiple projects, start things as side hustles, and are fearless in experiments. With the rise of the gig economy and online businesses, hustling has become a popular way to be one's boss without significant overheads. Starting up requires a minimum viable product or service and the drive to test and iterate.

10. Social entrepreneurship

Social entrepreneurship uses business principles to develop solutions to social, cultural, and environmental challenges. Social entrepreneurs build organisations prioritising impact over profit, often innovating new change models. This type has surged in popularity, representing 22% of women-owned ventures. Social entrepreneurs must balance the social and financial components of their ventures. Starting up takes passion for a cause, creativity to address it sustainably, and often a collaborative approach with stakeholders.

What is Entrepreneurship?

Entrepreneurship is setting up and running a business, taking on financial risks in the hope of profit. It involves identifying an opportunity, creating a product or service to seize it, and bringing together the necessary resources and people to make it a reality. The concept of entrepreneurship has a long history, with early examples dating back centuries. However, it was in the 1700s that the term began to be used to describe individuals who stimulated economic progress by finding new and better ways of doing things. Since then, entrepreneurship has driven innovation, job creation, and economic growth worldwide.

What are the most common types of entrepreneurship?

According to the Global Entrepreneurship Monitor's 2021/2022 Global Report, the most common types of entrepreneurship are:

1. Small business entrepreneurship (44% of entrepreneurs globally)
2. Intrapreneurship within existing organisations (23%)
3. Scalable startups with high growth potential (7%)

The main reason small business entrepreneurship is more popular is its accessibility. It requires less startup capital, serves an established local demand, and allows individuals to become their bosses without reinventing the wheel. Intrapreneurship is also common as it enables employees to innovate with the backing and resources of their employer.

What are the most common types of Entrepreneurship in Australia?

In Australia, a 2017 report by the Department of Industry, Innovation and Science found the most common types of entrepreneurship to be:

1. Small business entrepreneurship (60%)
2. Scalable startups with high growth potential (22%)
3. Social entrepreneurship addressing societal needs (8%)

Australia's thriving small business sector reflects its strong culture of independence and support for local enterprise. Focusing on innovation, digital technologies, and access to Asia-Pacific markets drives the relatively high rate of scalable startups.

What entrepreneurship types do women commonly choose?

Studies show that women entrepreneurs tend to gravitate towards:

1. Small business entrepreneurship (53% of women-owned ventures)
2. Social entrepreneurship (22%)
3. Innovative entrepreneurship (14%)

A 2020 report by the Women's Entrepreneurship Knowledge Hub found that women often choose small businesses because they are flexible in balancing work and family. Social entrepreneurship appeals to their desire to make a positive impact. Innovative ventures allow them to bring creative, often female-focused solutions to market.

What entrepreneurship types do moms commonly choose?

For mom entrepreneurs specifically, popular choices include:

1. Small business entrepreneurship (61%)
2. Home-based and online businesses (35%)
3. Social entrepreneurship (16%)

According to a 2019 survey by Mums & Co, moms are drawn to small and home-based businesses because they can balance earning an income with raising a family. Many monetise skills from their professional backgrounds or passions. Social entrepreneurship is also attractive as it aligns with their values and desire for meaningful work.

How to choose the best type of entrepreneurship

Choosing the best type of entrepreneurship depends on aligning your:

• Skills and strengths
• Interests and passions
• Lifestyle and family commitments
• Financial resources and risk tolerance
• Target market and competition

Researching different types of entrepreneurship can help you understand their unique characteristics, challenges, and success factors. Reaching out to other entrepreneurs, especially those with similar backgrounds, can provide invaluable insights. Taking a self-assessment to clarify your entrepreneurial profile is also worthwhile.

What is the best type of entrepreneurship for a mom?

The best type of entrepreneurship for a mom will vary based on her unique circumstances, but common considerations include:

• Flexibility to balance family responsibilities
• Ability to work from home or remotely
• Alignment with skills and experience
• Startup costs and financial risk
• Scalability and long-term growth potential
• Personal fulfilment and passion for the business

For many moms, small business and home-based entrepreneurship offer the most excellent flexibility and shortest path to getting started. Businesses that can be run online, part-time, or that tap into a mom's existing network are often a good fit. Social entrepreneurship can also be rewarding if a particular cause drives a mom. The key is choosing a type that matches your strengths and fits your family life.

Who can help you find the best type of entrepreneurship for you?

Working with a business coach can be incredibly valuable in determining the best type of entrepreneurship for you. An experienced coach can:

• Help clarify your skills, interests, and goals
• Provide personalised guidance based on your unique situation
• Share insights on market demand and trends in your target industry
• Connect you with resources and networks to support your chosen path
• Offer accountability and motivation to pursue your entrepreneurial dreams

Business coaches bring an objective perspective and a wealth of real-world knowledge. They can save you time and missteps by helping you focus on the entrepreneurship types that align with your profile and are most likely to succeed.

How does a business coach help find the type of entrepreneurship?

In practical terms, a business coach can guide your entrepreneurial journey in several ways:

• Conducting a skills and personality assessment to identify your entrepreneurial strengths
• Exploring your passions and the lifestyle you want to create through your business
• Analysing market trends and competition to determine viable business opportunities
• Stress-testing business ideas to ensure they are well-suited to your goals and resources
• Developing a clear action plan to launch and grow your chosen entrepreneurial venture

For example, suppose you're a mom with a background in education and a passion for sustainability. In that case, a coach may help you explore options like starting an eco-friendly tutoring service, selling green learning products online, or launching a non-profit to bring environmental education to schools. They can guide you through the pros and cons of each, help validate the idea with market research, and create a roadmap to bring it to life in a way that works for your family. With a coach's expert guidance, you can confidently choose the entrepreneurial path that unlocks your highest potential.

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