The word entrepreneur is derived from French and literally means, one who undertakes. With that in mind, entrepreneurs undertake a considerable amount of initiative and risk when launching a new business venture. Some are successful, but many will fail. Nonetheless, all entrepreneurs share the same driving spirit that has led them to undertake their dream of starting their own business. Though they may all have the same entrepreneurial spirit, we identify three types of individuals that embark on the startup process.
The Social Entrepreneur is motivated to transform the world into a better place to live. He/she does not accept status quo and seeks to actively improve environmental, educational, social and economic conditions. Rather than being driven by the desire for profits, social entrepreneurs are usually aimed at improving the quality of goods and services while contributing back to the community and society.
The Serial Entrepreneur continuously comes up with new ideas and starts new businesses. He/she can easily duplicate his/her previous successful business model, or follow his/her experience to realize a new idea. Serial entrepreneurs are willing to take risks in new fields and are likely to experience repeat entrepreneurial success.
The Lifestyle Entrepreneur combines their interests and expertise into a business model that allows them to make a living. Unlike other entrepreneurs who grow their businesses and aim for high return upon exiting or selling their business, lifestyle entrepreneurs are truly passionate about their professions and choose a business model that can sustain long-term development. They place their passion before profits, integrate their interests into their business and possess high expertise to yield breakthroughs in their respective fields.
People usually connect the term entrepreneur with the desire for money. However, this stereotype does not fully describe all of the forces that motivate entrepreneurs. While all entrepreneurs take risks to achieve success, their respective definitions of success differ based on their goals, personal beliefs, interests, values, etc. A business plan portrays and entrepreneurs goals while formulating a clear strategy for achieving these goals.