Choose and describe two of the four broad categories of entrepreneurs that differ from the traditional path.

Question

What will be an ideal response?

Answer 1

There are many paths to entrepreneurship. Four broad categories that differ from the traditional path include the home-based entrepreneur, the serial entrepreneur, the nonprofit entrepreneur, and the corporate entrepreneur. Students may choose any two of these categories to describe.The Home-Based Entrepreneur. Technology has made it possible to do business from virtually anywhere, so entrepreneurs don't have to work in traditional office spaces to start or run businesses. Moreover, home-based business owners can tap into more resources than ever before from their desktops or mobile devices to locate help for any problem they may be facing. Many entrepreneurs with aspirations to grow their businesses start from home to save on overhead and reduce the risk of startup. Once the concept has proved itself, they often move out to acquire facilities and other resources that will support the growth of the company and the addition of employees.The Serial or Portfolio Entrepreneur. An entrepreneur who starts one business and then moves on to start another is called a serial entrepreneur. Often these entrepreneurs start another business that builds on the experience from the first venture or builds on a specific expertise that an entrepreneur possesses or has acquired through a previous venture. An entrepreneur who owns a minority or majority stake in several ventures is called a portfolio entrepreneur. Portfolio entrepreneurs often create a lot of churn in their portfolios as they seek out new business opportunities that link to their existing businesses. They tend to be constantly on the hunt for new opportunities.The Nonprofit Entrepreneur. Nonprofit, socially responsible businesses typically focus on educational, religious, or charitable goods. They generally seek tax-exempt status so that they can attract donations from companies and individuals who believe in their mission. Contrary to popular belief, nonprofit businesses can and should make a profit, but that profit must stay within the company rather than be distributed to the owners.The Corporate Entrepreneur. Entrepreneurship can also occur inside an existing organization. Known as corporate entrepreneurship, this phenomenon is now regularly studied by the research community, and increasingly, large organizations are finding it necessary to provide for entrepreneurial activity to remain competitive. Corporate ventures are distinct from other types of projects that large firms take on. For one thing, they generally involve innovation and activities that are typically new to the company, so the risk of failure is high. There is also a high degree of uncertainty around such projects, so they are often managed separately from core business activities. Those who choose the corporate entrepreneurship path will need to align with key decision makers in the organization; work with only the best, most motivated people; and do any job needed to make the project work.