WATCH: The 3 types of entrepreneurs explained
On this week’s episode of Small Biz MBA, Yasmeen Alli, academy manager at Raizcorp, identifies three different types of entrepreneurs and how they run their businesses.
The survivalist/subsistence entrepreneur
Alli says survivalist entrepreneurs are the Dodo’s of entrepreneurs, because like the bird, they’re just happy to be just getting by. “They don’t have a set product or value proposition. They will sell what people want today. They will quite simply go with the demand and they will sell this at whatever price they can sell it at.”
These entrepreneurs are also referred to as parrots because they’re all about being seen and heard and copy what everyone else is doing. “They tend to be all about what it looks like, they tend to be about what it sounds like. They want to grow their businesses but not too far outside their own personal comfort zones. In fact they prefer keeping it at levels where they are in complete control,” says Alli.
The downside of such entrepreneurs is that they cannot grow their businesses beyond their own personal capacity, she says. This means if they don’t work, they don’t earn any money.
The growth entrepreneur/Eagle
These entrepreneurs are adept at spotting interesting opportunities. Eagles are willing to forgo the short-term rewards for long-term gains, says Alli.
“They also see themselves as experts at what the company does rather than what they do. And each component of their business needs to be looked after. They’re much more interested in functions that grow the business than the technicalities of day-to-day life.”
She says that neither of these types of entrepreneurs is better than the other and often entrepreneurs will adopt all three types in the journey to grow their business.
In part two, Alli chats to founder and director of Setsmo, Solly Molefe Sechoaro, who has been all three types of entrepreneurs and now sees his business in a growth phase.
• Small Biz MBA airs on Business Day TV channel 412