THE TWO TYPES OF ENTREPRENEURSHIP
In Bill Aulet's book on entrepreneurship, he distinguishes between two types of entrepreneurship. This distinction is important because it helps to better understand the needs and objectives of entrepreneurs.
Entrepreneurship of SMEs and VSEs
This new company is usually created for a local market and as they grow, they become a small or medium-sized business. These are often family businesses. For the founder, the goal is the financial independence and control that this type of business provides. They need less capital and jobs are generally not relocatable. It is distinguished by its focus on local markets.
The entrepreneurship of innovation-based companies
This is the most risky and ambitious type of business. The entrepreneur aims at the international market or at least the national market. Entrepreneurs generally work as a team from an innovation allowing them to have a competitive advantage. Jobs are generally outsourced.
They are often slow to start, require significant capital, but they can grow exponentially. Entrepreneurs are more interested in creating wealth than in controlling the business. The innovation-based business must have rapid growth in order to serve the global market. The return on capital and job creation is slower to achieve, but the returns are higher.