Types of Entrepreneurs
Entrepreneurs can be categorized by a number of dimensions, including the size and scalability of the business, the form of business, whether a business is home-based, brick & mortar, or online, and other dimensions.
It’s tempting to believe that a successful entrepreneurial plan can be used by another entrepreneur to achieve similar success. The problem with this logic is that it assumes that all entrepreneurs are essentially the same. Clearly, that’s not the case. In working with a number of start-ups, “Entrepreneurial DNA” author Joe Abraham realized that although entrepreneurs share common traits, they have distinctly different personalities, and to be successful, the strategy has to match the person. Abraham found that entrepreneurs exhibit one of four distinct types of “entrepreneurial DNA,” each with its own strengths, weaknesses, and characteristics. In presenting his concept in a TED Talk, Abraham proposed thinking of the DNA types as “presets on your radio.” Each button is associated with a set of predisposed behaviors and decision-making matrix. And for each preset, there’s a different path to market.
Abraham translated this insight into the BOSI Framework, with four entrepreneurial DNAs:
- Builder
- Opportunist
- Specialist
- Innovator
Builders
A builder is, as one would expect, focused on scaling the business quickly. They tend to be serial entrepreneurs, perpetually building and selling businesses, often in completely unrelated industries. To a builder, success is measured in infrastructure terms—for example, office square footage and size of payroll. Builders tend to excel at attracting talent, investors, and customers, but can exhibit a Dr. Jekyll and Mr. Hyde behavior that results in high turnover. As Abraham notes, “if you look back on their history, you see a wake of dead bodies: key employees, spouses, children.”
Opportunists
An opportunist measures success in financial terms and is always looking for the next money-making opportunity. Opportunists tend to be impulsive decision makers—for better or worse.
Specialists
Specialists are experts (e.g., accountants, doctors, lawyers) who generally spend their careers in one industry. They measure success based on their personal income. With an aversion to selling, their primary weakness is demand generation.
Innovators
Innovators are the mad scientists of the world. They measure success based on impact; it’s about the mission, not the money. Innovators are often accidental entrepreneurs; their weakness is business operations. They often start businesses just for personal satisfaction and the lifestyle.
Why Does Entrepreneurial DNA Matter?
Knowing yourself—your strengths and weaknesses—is key to selecting a business, assembling a team, and developing a strategy that leverages your individual and collective (team’s) entrepreneurial DNA. Specifically, it allows you to work with your strengths and hire to cover your weaknesses.
- “About StartupNation,” https://startupnation.com, accessed February 1, 2018; Jim Morrison, “Entrepreneurs,” American Way Magazine, October 15, 2005, p. 94. ↵
- Barbara Farfan, “Amazon.com’s Mission Statement”, The Balance. April 15, 2018, https://www.thebalance.com/amazon-mission-statement-4068548. ↵
- Martha Irvine, “More 20-Somethings Are Blazing Own Paths in Business,” San Diego Union-Tribune, November 22, 2004, p. C6. ↵
- S. Levy Foods, “About Us,” https://www.sarahsfoods.com/about. ↵
- Andrew Morse, “An Entrepreneur Finds Tokyo Shares Her Passion for Bagels,” The Wall Street Journal, October 18, 2005, p. B1. ↵
- Durkin, John. “Google Review of Maruichi Bagel by John Durkin.” Google. Accessed December 27, 2022. https://goo.gl/maps/UjwG8tW3iBazVwNR9. ↵