1.Salary‐substitute
firms: Small firms that afford their owner or owners a similar level of
income to what they would earn in a conventional job. Examples: dry cleaners,
convenience stores, restaurants, accounting firms, retail stores, and
hairstyling salons
2.Lifestyle
firms: Provide their owner or owners the opportunity to pursue a
particular lifestyle
and earn a living while doing so. Examples:
ski instructors, golf pros, and tour guides.
3.Entrepreneurial firms: Firms that bring new products and services to market by creating
and seizing opportunities. Google, eBay and Starbucks are well‐known, highly
successful examples of entrepreneurial firms
