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Types of Startups

Recently the word “Startup” is taking a greater impact, and perhaps for marketing issues, or a something that is happening globally. While technology companies and social media networks like Facebook, Google, Apple or Twitter are having their good years in the market, new businesses are emerging. Startups have a fashionable  rise in recent years. However, to think that the only companies that exist are technological, this can be categorized as a mistake.

Making some online research, I found that there are different classifications for startups. In several places numbers can be found more or less types of Startups in business, but here I present some types of startups that are more representative.

Purposes of Startups

According to Professor Myles Bassell from Brooklyn College entrepreneurship is the process of creating something new and assuming the risks and
rewards. Entrepreneurship is the dynamic process of creating wealth. 

He also explains the entrepreneurial process and overall the types of startups that exist. As well, Renderforest show the 6 types of startups that exist. 

1. Big Business Startups

Created to innovate

2. Social Entrepreneurship Startups

Built To Make A Difference

3. Buyable Startups

Created to be acquired

4. Scalable Startups

Built to grow tremendously

5. Small and Medium Sized Enterprise Startups

Created to meet the founder's needs

6. Lifestyle Startups

Built to work on what you love

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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 create new revenue that large companies have to innovate in new business models that help them meet those goals. Any new business developed by some of these companies fall within the category.

2. Social Entrepreneurship Startups

There are entrepreneurs who are creating non-profit organizations, or a combination of the search profit, but especially its ultimate objective is to improve their environment. The main goal of social entrepreneurs is to make the world a better place. Not for the fact that their company or organization does not seek profitability as 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. 

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3. Buyable Startups

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 that was acquired by Facebook.

4. Scalable Startups

In this category fall the ones that we probably hear more, the Tech Startups. Technology companies have a huge potential to grow due to the nature that allows 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.

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5. Small and Medium Sized Enterprise Startups:

The description of a SMEs can be ambiguous, because these types of businesses can be classified either by their size in people or by the amount of revenure 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. The 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

For hobby lovers that work on their real passion may be listed under this type of startups. They are usually people who want to satisfy their needs by being in activities that are entirely on what they like. For example, music lovers who decide to open a music school to spend more time around this environment.

Certainly there may be more types of Startups in Business, but what is interesting is to see how entrepreneurship around the world is taking an important development role in countries.

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