What Are The Six Types of Startups?
Everyone who starts an organization is an entrepreneur. The entrepreneurs can be divided into six groups, based on the nature of the organization.
Large Company Startups: The first type of startup is the Large company startup, which was established for innovation or evaporation. Large companies have finite life cycles. A life cycle starts with a need for innovation, in which the company will offer new products or services. The need for the change may be due to new competitors, new technologies, changes in customer tastes, legislation, or other reasons. Existing companies may do this by either acquiring innovative companies or attempting to build a disruptive product internally. Ironically, in many cases, the large company's culture and size make it difficult for a large company to establish a startup.
The entrepreneurs can be divided into six groups, based on the nature of the organization.
Small Business Startups: At the other end of the spectrum, we can find the Small Business Startups. It includes every small business that was founded. Small businesses include laundries, restaurants, grocery stores, consultants, and much more. In most cases, small business entrepreneurship is not designed for scale, but only to "feed the family."
Scalable Startups and Buyable Startups:
We can find two types of startups - Scalable Startups and Buyable Startups between the two extremes we mentioned above.
Scalable Startups: Scalable startups are established by founders who believe, from day one, that they can change the world. Those startups are born to be big. Examples of such startups may include companies such as Microsoft, Apple, Google, and much more. The founders try to create equity in a company that eventually will become publicly traded or acquired, generating a multi-million-dollar payoff.
Buyable Startups: Buyable Startups are founded for one reason only - to be sold to larger companies. E.G., Maximize the return to shareholders by selling the company to a larger company.
Lifestyle Startups and Social Startups
The last two types of startups are Lifestyle Startups and Social Startups.
Lifestyle Startups: A Lifestyle entrepreneur pursues his personal passion. He lives the life they love and works for no one but himself. For example, this could be a person who travels the world, runs a successful blog, and makes a living from advertisements on his blog.
Social Startups: The social entrepreneur has one goal - to make the world a better place. They may be organized as a nonprofit, a for-profit, or hybrid. The goal is not to increase the market share or to create wealth for the founders.
