Entrepreneurs comprise a big part of the United States of America’s economic engine. These individuals are driven and inspired by different reasons.
“Whether you work for an entrepreneur, are considering taking a job for one, or are interested in investing in their business, learning about the different types and operating styles of entrepreneurs will give you insight into the future of their companies,” says Tony Zorc, author of Iconoclasm: A Survival Guide In The Post-Pandemic Economy and a tech entrepreneur.
“There are three types of entrepreneurs, and understanding each one will help you decide whether you want to get involved with them. That’s even more important when you consider the high failure rates of start-ups and the uncertainty of the post-COVID economy.”
“Analyze each type of entrepreneur and what you can expect of them in four areas: the management priority or prime directive; the customer experience; employee working conditions and culture; and management longevity,” Zorc advises.
Zorc describes the three types of entrepreneurs
The investor-driven entrepreneur is not concerned with the mission of the company and is not tied to the company emotionally. The main aim is to sell shares at a favorable price.
“The customer experience can be horrible when the entrepreneur is looking to sell quickly.”
“The investor may spend a lot of money on marketing to obtain customers quickly and without having the desire to keep them long-term,” says Zorc.
“Bringing in customers quickly can look like high growth to a potential buyer of the company. Employee turnover is usually high as they are seen as a means to a return on investment.”
“The ego of the investor entrepreneur is often the real force behind the company’s growth. Examples of these investors are Bill Gates, Warren Buffett, and Jeff Bezos,” says Zorc.
“Innovators are artists in the form of a business person. They are obsessed with their business and technology changing the world and the marketplace. Customer of innovators can be fantastic since they care about what you think about their product.”
Customers of innovator companies often form communities around product consumption to share experiences. Working for innovators is a good experience if there is shared passion.
“They don’t typically look to sell their equity in their company, unless they see it as necessary for the mass adoption of their product and achieving their vision,” Zorc says.
Innovator entrepreneurs include Henry Ford, Steve Jobs, Elon Musk and Howard Schultz.
“Their primary focus is on making things better for their customers. Return on investment is not the sole reason they went into business,” asserts Zorc.
“They adopt and drop technologies for their customers’ benefit. They care about product pricing, and want more people to experience the mission thus tend to price things low.”
“Mission-driven entrepreneurs create good work cultures because they realize having productive, happy employees is critical to the long-term happiness and loyalty of customers.”
“Mission-driven companies tend to be privately held, and the entrepreneur tends to stay with the company most of their working life like Michael Dell and Truett Cathy,” Zorc says.
“An entrepreneur can drive the vehicle any way they choose, based on the purpose behind their goals. Getting a handle on who is driving and what’s driving them is critical before you decide to become a passenger,” Zorc concludes.