We explore five key areas: Financial Psychology, Increasing Your Income, Investing, Real Estate, and Entrepreneurship. This is referred to as double-ii FiiRE.
Today, we focus on Pillar Five: Entrepreneurship.
Pillar V | Entrepreneurship
Earlier this month, we discussed the first four pillars in our newsletter. However, it wasn't until Friday that we released our much-anticipated interview with Lori Rosenkopf, the Vice Dean of Entrepreneurship at Wharton Business School.
We have been organizing this in-person interview since early April, and following its publication last Friday, we're eager to delve into her insights.
She holds the prestigious Simon and Midge Pally Professorship at Wharton, an esteemed faculty title. Additionally, she serves as the faculty director for Venture Lab, UPenn's initiative for student entrepreneurs. Recently, she authored a book titled “Unstoppable Entrepreneurs,” where she identifies seven different paths to entrepreneurship.
Mainstream media typically emphasizes only one of these paths — The Disruptor — causing many to overlook the other six paths that might actually suit them better.
The Disruptor is characterized as an individual who raises significant capital to create massive businesses that transform entire industries, like Facebook/Meta, Uber, Lyft, and Airbnb.
However, it's important to note that there are six alternative paths that may be a better match for you. Let's break these down.
First, we have The Bootstrapper, who represents 80 percent of small businesses in the U.S. This path involves no outside investors or loans, relying solely on hard work and reinvesting profits. This truly forms the backbone of American enterprise.
Bootstrap businesses are fully self-funded, with the founder investing their own money and ideas, starting the business with some savings and maintaining a lean operation by contributing more time than financial resources.
Often, these entrepreneurs initiate their ventures part-time, alongside a regular job, reinvesting all earnings back into the business until it becomes sustainable enough for them to transition to full-time.
Such businesses tend to grow at a slower pace but achieve greater stability.
Next, we introduce The Social Entrepreneur, where ethical considerations and profit coexist.
In this case, the initial step involves securing funding, which often comes from pitch competitions, philanthropic grants, incubators and accelerators focused on social enterprises, crowdfunding platforms, or social impact investors.
(While these can also be bootstrapped, rest assured that numerous seed funding sources exist for those genuinely interested in social impact entrepreneurship.)
Following this is The Tech Commercializer, who acts as a bridge between technological advancement and profitability.
They collaborate with academics or researchers who have promising discoveries, operating in the overlap between tech innovation and business savvy.
Their focus is not on developing original concepts (R&D) but rather on the business aspect of introducing those innovations to the market. Universities possess billions in research that are never commercialized, and these entrepreneurs step in to fill that gap.
Next, we have The Funder, individuals who assemble private funds to invest in other entrepreneurs and creators.
Many entrepreneurs begin by setting up their own business and subsequently evolve into funders, not only providing capital but also offering mentorship and guidance to the next generation.
Successful bootstrappers frequently transition into this role as it provides a natural progression from building their own enterprise to aiding others in developing theirs.
Another increasingly prevalent path is The Acquirer, which has gained traction in recent years.
As more Baby Boomers retire — many of whom have children uninterested in continuing the family business — opportunities to acquire strong small businesses will continue to rise.
We explored this in detail during our comprehensive interview with Codie Sanchez (runtime: 1 hour, 40 minutes without ads). Be sure to watch for deeper insights.
Lastly, we have The Intrapreneur. This term combines “inside” and “entrepreneur,” referring to employees who generate ideas and products within an existing company.
It essentially signifies employees who think and act like entrepreneurs while fulfilling their full-time responsibilities.
This role is appealing for its creativity, innovation, and enjoyment without the intense pressure. However, it does come with limited potential for upside, and finding a suitable company that encourages this mindset is essential.
The wonderful aspect of these seven paths? There is no ranking among them.
A bootstrapper running a steady $2 million business does not experience lesser success compared to the disruptor who raises $50 million; they are simply engaged in different kinds of ventures.
The pertinent question is not which path is the “best” — it's which path is most suitable for you at this moment, considering your existing resources and goals.
You are not confined to a single path indefinitely. You can pursue whatever suits you currently and shift as your priorities and circumstances evolve.
You can also navigate two of these paths at once. Perhaps you're an Intrapreneur during your daytime job and a Bootstrapper during evenings and weekends.
You might be an Acquirer aiming to purchase a small business while also embodying the values of a Social Entrepreneur within that venture
Today, we are delving into Pillar Five: Entrepreneurship, in which Paula examines the 7 different types of entrepreneurs and the distinct methods each utilizes to generate wealth.