Different Types of Small Business Owners

While the actual categorization of business organizations as ‘Small Businesses’ depends on a large number of factors, the term is generally used for privately owned companies, sole-proprietorships and partnerships. Despite of a large number of small businesses that deal in varied forms of businesses, the business owners often share several characteristics, irrespective of the nature of the business. According to recent surveys and studies various factors like goals, challenges, ownership and resources play a vital role in the functioning of a business and most business owners can easily be categorized according to their reaction to the various factors. Listed below are a few common types of small business owners that you can easily identify in the market.

1. Freedom Seekers

The freedom seekers are becoming highly popular among the new age business owners. These are simply the type of people who have started a business to become their own bosses. It is common with employees to become wary of their superiors and finally take a decision to start their own business and take charge of all the decision making and work environment. Their main goal is to reduce the time required for a particular task to reduce the amount of time they have to work. This makes them rather easy going bosses and employees usually enjoy a much friendly work environment. Nevertheless, these types of business owners are usually found working solo with few or no employees.

Different Types of Small Business Owners
2. The Passionate Risk Takers

These are the people who chose to own a business to become a businessman. These people are often self-driven and highly passionate about work and ethics. They take adequate risks to ensure maximum profits and are always aimed at taking their small companies to new heights. They can be a bit probing as bosses and hardly go easy on their employees when it comes to work and performance. Nevertheless, these business owners are visionaries who become seasoned as time progresses. They usually start a business to make a difference and love their work as they chose to do it.

3. Family Inheritance

These are the traditional business owners who have inherited their place as the head of the family business. The companies they own are usually long standing and the ownership has been passed on since generations. They are usually aimed at the sustainability of the business rather than its growth. Nevertheless, they are also known for their specialty and exclusiveness of products or services which have made their business, survive through generations. These owners are usually without a college degree and are more practical in their approach than taking big risks. They usually make difficult bosses with their larger than life expectation from their employees due to lack of experience in the business.

4. Strugglers

These types of business owners are less common as they do not survive for long. They can come from any of the above mentioned classifications and are generally the ones who jumped into business without knowing the risks involved. They usually start as visionaries who sought on capitalizing on an opportunity but made a few wrong turns. They would often make statements like ‘corporate jobs are more secure than owning a business and usually end up closing their businesses due to lack of enthusiasm and profits.

Setting up and owning a business is subject to several factors and mentioned above are the most commonly found owner types in the market. Everyone has their reasons for starting a business and these reasons often become responsible for the success or failure of a business. Planning to start your own business? What kind of business owner are you looking forward to become?

About the author: Luke Peters likes to read books and other material related to business, finance, marketing and management and is also the current contributor for mediagrouplondon.com which is the top London Marketing Agency. He has written several articles on various websites and blogs and likes to stay up to date with the latest developments in the market.

One thought on “Different Types of Small Business Owners

  1. Thank you for this wonderful definition of all small-businesses. I guess it can be useful for a beginners, who just start own business. The person must make a business-plan to understand what type he or she is going to have, and which one will correspond the best. The other good recommendation can be an online service that provides money same day via Internet. It is very helpful for people who have no initial capital, but who have a great idea how to start a new business.

Leave a Reply

Your email address will not be published. Required fields are marked *