Six Types of Start-ups in The Business World
Recently, the word “startup” is having a greater impact, perhaps for marketing issues or something that is happening all over the world. While technology companies and social media networks like Facebook, Google, Apple, or Twitter are having their wonderful years in the market, new businesses are emerging. Startups have fashionably risen in recent years. However, to think that the only companies that exist are technological can be categorized as a mistake.
After doing some research, I found that there are different classifications or categories of startups. In this article, I present some types of startups that are more representative.
1. Big Business Startups.
Companies with large capital and presence in different markets are recognized for what they have offered for years. However, in order to be more profitable and generate new revenue, large corporations must innovate in new business models that assist them in meeting those objectives. Any new business developed by some of these companies would fall within the category.
2. Social Entrepreneurship Startups.
Social entrepreneurship is the process by which individuals, startups, and entrepreneurs develop and fund solutions that directly address social issues. A social entrepreneur, therefore, is a person who explores business opportunities that have a positive impact on their community, society, or the world.
Most social entrepreneurs solve social, cultural, or environmental problems. The phrase “social entrepreneurship” is broad and describes any privately owned organization that strives to achieve socially conscious results.
There are entrepreneurs who are creating non-profit organizations or a combination of both in search of profit, but especially if their ultimate objective is to improve their environment and impact the environment positively. The main goal of social entrepreneurs is to make the world a better place. Because of the fact that their company or organization does not seek profitability as its main goal, we shouldn’t consider them as a startup. They are also starting a path to wealth creation in order to create a better world.
3. Buyable Startups.
Buyable startups are startups made with the intention of being sold. These are very common in the tech industry. There are a lot of apps and tools that developers create only to sell to someone else.
This type of startup is most suited for serial entrepreneurs. These are people who are driven by the development of new ideas. Serial entrepreneurs are amazing at coming up with new approaches and concepts, but they quickly get bored when they start operating the business.
Sometimes entrepreneurs can launch a business and not grow it into a billion-dollar company but sell it to a larger company.
The ability of software developers is increasing, and we are seeing more apps on the market. Perhaps the creators’ aim is to generate something new but, at some point, end up being acquired by a tech giant. As an example, we have Instagram, which was acquired by Facebook.
4. Scalable Startups.
The ones we probably hear about the most fall into this category: tech startups. Technology companies have a huge potential to grow due to the nature of their access to a global market. To be scalable goes beyond technology; to be scalable is the potential of a newly established company to obtain financing from investors and grow to a worldwide presence.
5. Small and Medium Sized Enterprise Startups.
The description of an SME can be ambiguous because these types of businesses can be classified either by their size in people or by the amount of revenue they have. What they have in common is that these businesses start with the ideal of a founder or group of founders to solve one of their needs. SMEs in their founder’s phase don’t need to be very sophisticated companies to be considered startups. The traditional way of creating wealth is to start new businesses with proven business models.
6. Lifestyle Startups.
Lifestyle startups are usually moving in a different direction. These business owners are looking for a fulfilling life with more control over their time and flexibility to work from anywhere.
A lifestyle startup may or may not be a hobby turned into a reliable source of income. Some examples would be blogging, writing, photography, or teaching.
For hobby lovers, working on their real passion may be listed under this type of startup. They are usually people who want to satisfy their needs by being in activities that are entirely based on what they like. Music lovers, for example, who decide to open a music school in order to spend more time in this environment.
There may be more types of startups in business, but what is interesting is to see how entrepreneurship around the world is playing an important development role in countries.
Read Also: How to Avoid Major Mistakes Made by First-Time Startups
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