What Are the Different Types of Entrepreneurship?

If you want to be your own boss, follow your passions or work outside of a traditional corporate environment, entrepreneurship offers many opportunities.

Whether you’re looking to create a local business, launch a tech start-up or champion a cause, understanding the different types of entrepreneurship can guide you toward the right fit.

What is Entrepreneurship?

Entrepreneurship can be hard to define because it can take many forms.

“Entrepreneurship can mean anything from what many of us lovingly refer to as our side hustle, to small businesses, to high-growth start-ups attracting millions in venture capital, and everywhere in between,” said Dr. Karl Kammerer, MBA, an associate dean of business at Southern New Hampshire University (SNHU). 

According to the Center for American Entrepreneurship (CAE), entrepreneurship is the process by which an individual or group of people bring a new product or service to the market or improve upon an existing offer.

Kammerer, who worked as a biotech entrepreneur before entering the world of higher education, said he’s seen the definition of entrepreneurship change a lot over the years. But the ultimate aim of entrepreneurship has remained constant, he said.

“Entrepreneurship is about solving problems for people efficiently, effectively and consistently,” said Kammerer.

With the expansion of new technology making it easier for entrepreneurs to reach national and global markets, the work to solve consumer problems has grown significantly in recent years. According to the U.S. Department of The Treasury, in 2024, the United States averaged 430,000 new business applications per month — a 50% increase compared to 2019.

And these businesses can have a profound effect on the national economy. According to the Small Business Administration (SBA), small companies generated 12.9 million jobs between 1996 and 2021, accounting for 66% of all employment growth in the U.S. (SBA 2022 PDF Source).

As an entrepreneur, you could have a part in this critical economic impact, whether you want to start a small business or a fast-growing start-up.

What Are the 4 Main Types of Entrepreneurship?

Entrepreneurship can be defined in many different ways, said Kammerer. But most commonly, new business ventures are classified based on their industry, such as finance or retail, and on their size and growth rate, such as a small business or start-up, he said.

Some of the most common types of entrepreneurship include:

Small Business Entrepreneurship

According to the SBA, a small business is one with fewer than 500 employees (SBA 2021 PDF source). Small business entrepreneurship is what many people picture when they think of becoming a business owner.

Small business owners may work with a very small team. A psychologist who opens a therapy group practice is an example of this type of business owner. Or, they may have a few hundred employees, such as a small chain of coffee shops across a few towns or states.

Large Business Entrepreneurship

A large business entrepreneur may be the founder of a large corporation with potentially thousands of employees.

Large business entrepreneurship can also involve established companies offering new products and services or expanding into a new market sector based on consumer demands. Companies like Google, Apple and Microsoft are good examples of this kind of constantly-evolving business.

Start-Up Entrepreneurship

Start-ups are businesses that aim to disrupt established industries and bring a unique product or service to market, according to a 2024 article from Forbes. Start-up entrepreneurs typically dream of creating a large-scale operation that will make a profound impact on the world, often seeking investments to grow their businesses quickly.

According to Forbes, some of the most familiar start-up entrepreneurs come from the technology field, including founders of social media networks and software companies. But the start-up model can be applied to virtually any industry.

Social Entrepreneurship

Social entrepreneurs typically get into business to solve community-based problems and other social issues, according to the U.S. Chamber of Commerce. Examples of social entrepreneurship can include:

• Companies that donate a percentage of their profits to support a specific cause or charity
• Financial institutions that seek to support underserved communities and individuals
• Organizations that donate some of their products or services to individuals who may otherwise not have access

How to Become an Entrepreneur 

Your journey to entrepreneurship could look very different depending on the type of business you want to create, said Kammerer.

Like many careers, one of the first steps toward becoming an entrepreneur is higher education. However, the type of education you pursue on the path to business ownership can vary significantly, according to Kammerer.

A degree in entrepreneurship, for example, could give you key business skills and help you develop soft skills like communication and analytical thinking. At SNHU, a bachelor’s degree in entrepreneurship includes courses such as:

• Business law
• Business plan preparation
• Entrepreneurship
• Small business management

Depending on your preferences, you might choose to major in entrepreneurship on a traditional college campus or specialize in the subject in an online program.

Still, Kammerer said that a degree alone — whether in entrepreneurship or another field — is typically not enough to become a successful entrepreneur.

Instead, successful entrepreneurs combine education and real-world experience to start a business — building a network, working in your chosen field and learning more about entrepreneurship all at the same time.

This approach gives you the greatest chance of success when starting a business, according to Kammerer.

Kammerer said a degree is not required to start a business, but that education and experience can help you develop motivation, persistence, collaboration skills and more.

“You do need a growth mindset and a willingness to learn whatever you need to learn to achieve your goals," he said. "Business is often competitive, and start-ups have a high rate of failure. It takes focus and determination along with skills and resources.”

Is Entrepreneurship a Good Career Path? 

Many different types of entrepreneurs face challenges on their way to business success. With the ups and downs of the economy and the consistent advancement of technology, it’s not uncommon for new businesses to spend time adapting and evolving.

Still, Kammerer said that for persistent individuals with a goal, the time is always right to be entrepreneurial.

“The right opportunity is the one that fits the entrepreneur,” he said. “It is less about guessing correctly about the next big thing and more about a disciplined and unwavering pursuit. We start from where we are and leverage what we have today to achieve our vision for tomorrow.”

So, what is the difference between a high-earning business owner and a struggling entrepreneur? According to Kammerer, the key to success in entrepreneurship comes down to taking action.

“You have to dedicate a lot of focused time and energy to it, and it has to be systematic,” he said. “Week in and out. We have to build it into our weekly schedules and routines... What three things are you going to do this week to test or advance your entrepreneurial dream?”

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

Danielle Gagnon is a freelance writer focused on higher education. She started her career working as an education reporter for a daily newspaper in New Hampshire, where she reported on local schools and education policy. Gagnon served as the communications manager for a private school in Boston, MA before later starting her freelance writing career. Today, she continues to share her passion for education as a writer for Southern New Hampshire University. Connect with her on LinkedIn.