Topline
An entrepreneur is one who creates and operates a business, and there are several different types of entrepreneurs and ways they have reached success–here’s how you can become one.
Jeff Bezos, founder of Amazon, and Bill Gates, co-founder of Microsoft, are entrepreneurs who are … [+] two of the richest Americans. (Photo credit should read STAN HONDA/AFP via Getty Images)
Key Facts
Though they can overlap, an entrepreneur and a small business owner differ in the scale of their respective businesses and financing.
Types of entrepreneurship include small business, scalable startup, large company, innovation, corporate and social, among others.
Some of the most well-known entrepreneurs are Elon Musk, the founder of Tesla and owner of Twitter, Jeff Bezos, the founder and immediate past CEO of Amazon, and Bill Gates, the founder of Microsoft, all of whom are among the top 10 wealthiest people in the world per Forbes estimates.
What Is An Entrepreneur – And How Do They Differ From Small Business Owners?
Entrepreneurs, similar to small business owners, are founding and often running their own businesses. But they differ in scale. Entrepreneurs are generally seen as those taking high-yield risks that require a lot of money, thus their financing typically comes from investors. Small business owners are generally seen as those taking smaller risks to maintain an income for themselves and their employees and, when starting, may opt for a small business loan instead of investors.
Types Of Entrepreneurship
The First Republic Bank recognizes small business, scalable startup, large company, innovation and social as the main types of entrepreneurship. Small business entrepreneurs are those who focus on running their own businesses, such as local retail stores and restaurants. Small business entrepreneurs can, though, develop into large company entrepreneurs depending on the growth of their company, such as Sara Blakely, the creator of Spanx. Others, such as the Center for Entrepreneurship at the University of Michigan, place large company entrepreneurs in the same realm as intrapreneurs or corporate entrepreneurs who create a business for the business they work for, such as the creators of Apple’s MAC and Amazon Prime. Scalable startups entrepreneurs are those looking to fill gaps in a certain industry, such as father-son duo Jeff and Walter Cruttenden, who founded round-up investment app Acorns, which Forbes estimate to be the next billion-dollar startup. Innovation entrepreneurs are those looking to create new products, such as Mark Zukerberg who founded Facebook (now Meta), which Forbes ranks as the No.10 most innovative companies in the world. Social entrepreneurs are those looking to provide a solution to an environmental or societal problem, such as Noah McQueen, a member of Forbes’ 30 Under 30 and the founder of Heirloom, a company that uses minerals to absorb carbon dioxide from the atmosphere and fight climate change.
Famous Entrepreneurs
Famous entrepreneurs include Elon Musk, Jeff Bezos and Bill Gates–the top three richest Americans. Musk co-founded six companies and, at nearly $240 billion in net worth, is the richest person in America. Bezos founded e-commerce brand Amazon, and he is estimated to be worth $151 billion. Before Musk, Bezos held the title of wealthiest American. Gates co-founded the software company Microsoft, and he is worth nearly $120 billion.
Becoming An Entrepreneur: Characteristics And How To Start
According to Vistage, a coaching and advisory organization for CEOs and business leaders, the character traits of a successful entrepreneur are confidence, decision-making, motivation, passion and vision. The U.S. Small Business Association advises those interested in becoming small business owners and/or entrepreneurs to conduct market research, write a business plan, acquire funding, choose a business location, structure and name, register for businesses to get state and federal tax IDs, apply for permits and licenses and open a business bank account.
