Everything you need to know about the types of entrepreneurs. By defining entrepreneur, we know that he is the person who dreams about his business and after seeing the dreams, it becomes true. This is related with economic development of the country.
For more developed countries an entrepreneur has to be more innovative, enthusiastic, realistic, and dynamic.
Entrepreneurship is the practice of starting new organizations, mature organizations, and particularly new business generally in response to identified opportunities.
In economic analysis, entrepreneurial functions are supposed to be directed towards the materialistic objective of maximisation though its foundations may be of a high order such as spiritual, patriotic, social, psychological or ethnic.
Some of the types of entrepreneur are:-
1. Business Entrepreneur 2. Trading Entrepreneur 3. Industrial Entrepreneur 4. Corporate Entrepreneur 5. Agricultural Entrepreneur 6. Technical Entrepreneur 7. Non-Technical Entrepreneur
8. Professional Entrepreneur 9. Pure Entrepreneur 10. Induced Entrepreneur 11. Motivated Entrepreneur 12. Spontaneous Entrepreneur 13. First-Generation Entrepreneur 14. Modern Entrepreneur
15. Classical Entrepreneur 16. Innovating Entrepreneurs 17. Imitative Entrepreneurs 18. Fabian Entrepreneurs 19. Drone Entrepreneurship 20. Aspiring Entrepreneurs and a Few Others.
Types of Entrepreneurs: Business Entrepreneur, Industrial Entrepreneur, Agricultural Entrepreneur and a Few Others
Types of Entrepreneur – 10 Important Types: Innovative, Imitative, Fabian, Drone, Solo, Active Partners, Challengers, Life Timers, Buyers and Inventors
This is related with economic development of the country.
For more developed countries an entrepreneur has to be more innovative, enthusiastic, realistic, and dynamic, on the basis of the above requirement, an entrepreneur can be classified as discussed below –
1. Innovative – He is one who introduces for the first time new goods, provides new method of production, discovers new market and re-establishes the enterprise. However, there are some limitations, as they require some initial set up already existing and willingness of people to accept the changes.
2. Imitative – They must be ready to adopt successful innovations already put forward by the first type. They do not innovate the changes themselves, however, they initiate techniques and technology already innovated by others. This type is generally suiting for under developed countries.
3. Fabian – They are not ready to take any risks in organisation. However, they may imitate only when it becomes quite clear that there are no chances of any failure, thereby chances of loss is negligible.
4. Drone – This type of entrepreneur refuses to adopt opportunities for a change in production line, even at the severely reduced returns compared with other producers of the same item. They may accept the losses to incur but are not ready to change in their production methods.
5. Solo – They prefer to work alone, they seldom believe in their employees. It may be accepted in the beginning stages.
6. Active Partners – They work in joint venture, all of them actively participate in the enterprise. Those who only contribute in funds but do not take active part in other activities of enterprise are known as simply “Partners”. Sometimes, there are some sleeping partners also, who neither take part in any activities of the enterprise nor takes share in profit. They wish to be partner for a namesake.
7. Challengers – They only take part when enterprise faces some challenge. If the challenges are over, they begin to hunt for new challenges.
8. Life Timers – They accept the business as an integral part of their life. Usually, family enterprise with personal skill fall in this type.
9. Buyers – This type do not wish to take any risk. Hence, they believe in purchasing the finished goods from some enterprise and sell it in the market. In economics they are called “Traders”.
10. Inventors – Their basic interest lies in research and innovative activities. They are mostly successful and useful in later part of an enterprise.
In economic analysis, entrepreneurial functions are supposed to be directed towards the materialistic objective of maximisation though its foundations may be of a high order such as spiritual, patriotic, social, psychological or ethnic. Entrepreneurial activity is a form-giving activity-giving form to the wishes of the society, to ideas, to the efforts of factors and to the raw material to be processed through.
J. S. Mill has listed three entrepreneurial functions:
2. Control, and
J. B. Say has stated that it is function of the entrepreneur to rationally combine the forces of production into a new producing organisation. J. S. Mill lists superintendence, control and direction as entrepreneurial functions. Superintendence, to assemble the means, turn out maximum at minimum cost and to supervise the work. Control – the flow of goods, use of finance, utilisation of machinery and the activities of the subordinates.
Direction – he is a goal-oriented person; he has to keep the organisation constantly on the path of his objective. His is an activity of producing in present what the future will demand. Mill emphasises managerial and administrative functions. Organisation and superintendence are major functions of an entrepreneur. Organisation building capacity is the most critical skill expected of an entrepreneur.
Kirzener viewed the entrepreneur as a dis-equilibrating force. It is the alertness to unnoticed opportunities which creates a tendency of the ever-circular flow of equilibrium. Harvey Leibenstein states, “Entrepreneur is an individual or group of individuals with four major characteristics. He connects different markets; he is capable of making market deficiencies (gap-filling); he is input completer and he creates or expands time-binding, input-transforming entities (firms).”
To Joseph, A. Schumpeter, innovation is the sole function of an entrepreneur. It cavers the introduction of new goods, a new method of production, a new market, a new source of supply of raw materials or half-manufactured goods and a new organisation of any industry for the creation of a monopoly position or breaking it. The function of the entrepreneur is to reform or revise the pattern of production.
So, Schumpeter has given a social context to the activity, a psychological objective to be attained and a functionality spearheading development of the community. Lazarfeld has also Meier and Baldwin concur with Schumpeter.
Frederick Fritz Enumerates Four Functions:
The undertaking or managing of risks and handling of economic uncertainty; planning and innovation; coordination, administration and control and routine supervision. Ability to build an organisation is, perhaps, Harbinson adds, the most precious of all entrepreneurial skills.
Redlich’s threefold division of function is – (i) Capitalist — employing the factors and buying raw material, setting up the organisation; (ii) Managerial — innovation, supervision and coordination of productive activities and (iii) Entrepreneurial — decision-making. Benjamin Higgins lists seeing opportunities for introduction of new techniques, new products and exploitation of new resources and organising factors of production into an enterprise to take advantage of these opportunities as essential for economic development.
According to B. F. Hoselitz, “The primary function of entrepreneurship is the investment of time, capital and energy in economically significant pursuits; the emphasis is on decision-making on its various aspects.”
Another economist Harbinson enumerates four functions: in entrepreneurship the undertaking or managing of risk and handling of economic uncertainty; planning and innovation; coordination, administration and control, routine supervision. Ability to build organisation is, perhaps, Harbinson adds, the most precious of all entrepreneurial skills.
Redlich’s threefold division of functions are:
(i) Capitalist — employing the factors and buying raw material, setting up the organisation;
(ii) Managerial — innovation, supervision and coordination of productive activities; and
(iii) Entrepreneurial — decision-making.
Benjamin Higgins lists seeing opportunities for introduction of new techniques, new products and exploitation of new resource and organising factors of production into an enterprise to avail of these opportunities as they are essential for economic development.
B. C. Tandon discusses the functions of an entrepreneur in a developing economy in the context of economic, legal, political and cultural environment. Accordingly, the entrepreneur must possess – (i) Capacity to risk and have self-confidence; (ii) Technological knowledge, alertness to take existing opportunities, willingness to accept change and ability to initiate; (iii) Ability to Marshall Resources; and (iv) Ability of organisation and administration.
He has to have tact, patience, and sagacity, power of observation and ability of discriminating. He should have perseverance to overcome obstruction and fear, have the capacity to pick and choose associates and subordinates and wisely delegate authority to inspire loyalty. He must be able to develop “himself” effectively. Tandon describes entrepreneur as an “ideal-type” rather than as “social-type.” Knight is said to have identified entrepreneurship with control and responsibility.
Economic functions described above isolate the entrepreneur from the economic environ, social milieu and political ethos in which he functions. Maximisation is taken as the pole star in his voyage. It seems to be conveniently assumed that he is abundantly provided with all the resources and the market readily absorbs what he puts into it.
Reality is, however, full of bottlenecks and hurdles which are ignored in the above-mentioned works. Small industry is a natural habitat of the entrepreneur where his role is like that of a stoker who keeps the fire burning.
Sociology is intrinsically fascinating, as most sociological research seeks to explain prevailing social behaviour patterns and how they change over time. Some could be related to sex and gender, examining issues such as, ‘Do men and women have different hiring, employment, and promotion experiences?’ A sociologist could be asked to analyse which management styles increase productivity. A family sociologist could be researching whether children of divorced parents are more likely to divorce, or to reject marriage itself.
Any social phenomenon can be examined through different sociological standpoints. You can claim to be a sociologist if you have completed a master’s level, ideally a Ph.D. too. Sociologists could be studying the causes of social problems like crime, poverty, patterns of family relationships, different living patterns in communities of varying types and sizes.
Sociologists provide insight into how people are affected by their families, schools, work. This gives professionals in the helping careers such as social workers, teachers and nurses some idea of what makes people behave the way they do.
Sociology gives you an advantage in understanding human behaviour on three levels – (i) How individuals behave in organisations, families, and communities; (ii) The ways in which these social units function as groups and (iii) The wider social, political, and economic contexts in which decisions are made and in which groups function.
Sociologists pursue diverse specialties in, families, adolescence, or children; the urban community; education; health and medicine; aging and the course of life; work and occupations; the environment, science and technology; economics, social inequality and social class; race relations, ethnicity, and minorities; sex and gender; sports; culture and the arts; politics, military, peace, and war; crime, delinquency, law, and justice; social change and movements; and any other area of human organisation.
Sociologists consider the entrepreneur as a role performer corresponding to the role expected by the society. Wishes of the society are exhibited through customs and taboos, rewards and restraints, ethnic values and child-rearing practices, nationalistic attitude and patriotic inculcations and protestant ethics. He is conditioned by the social milieu to which he belongs.
According to Peter Marris, to assemble or reassemble from what is available, very concrete kind of imagination, to see what others have missed, sensitivity to business and social environment, zest in industrial development and entrepreneurial courage are the factors that make an entrepreneur. According to Flavia Derossi, Coordination at every stage- inception, maintenance and expansion — is the function of an entrepreneur.
She feels an entrepreneur needs two qualities – (i) An optimistic outlook that there is a possibility of change, the environment can be mastered and he himself can introduce the required change. He finds difficulties challenging and stimulating; he thrives on them. (ii) In a sphere as dynamic as industry, new problems are seized upon as opportunities for testing one’s own capabilities.
According to T. C. Cochran, the entrepreneur represents society’s model personality. His performance depends upon his own attitudes towards his occupation, the role expectations of sanctioning groups and the occupational requirements of the job. Society’s values are the most important determinant of attitudes and role expectations.
Arthur, H. Cole, states that entrepreneurship should not be studied by focusing on individual entrepreneur but rather by looking at the enterprise. Special attention was often paid to the social relations within the enterprise and to the relations between the enterprise and its surroundings.
Everett, E. Hagen also concluded that entrepreneurs have emerged from certain communities and castes.
Thus, Hagen disregard the complicated institutional environment that surrounds the entrepreneur.
Among psychologists. Frank young describes an entrepreneur as a change-agent. K. L. Sharma maintains that entrepreneurs are men who exhibit qualities of leadership is solving persistent professional problems; but those persons likewise demonstrate eagerness to seize unusual opportunities. They have a business gambler’s itch. T. V. Rao and Udai Pareek describe entrepreneurship as a creative and innovative response to the environment. The entrepreneur is goal-oriented rather than means-oriented.
He must not only have a high capacity of risk-taking but must also have a high capacity of risk- sustaining which is a function of a high degree of self-confidence.
Joseph Schumpeter states that the entrepreneur is mainly motivated and driven by three things:
(i) ‘The dream and the will to found a private kingdom’;
(ii) ‘The will to conquer’;
(iii) ‘The joy of creating.’
J. Schumpeter’s formulation can be translated as:
(i) The desire for power and independence;
(ii) The will to succeed;
(iii) The satisfaction of getting things done.
According to him, money is not what ultimately motivates the entrepreneur ‘Entrepreneurs’, according to Schumpeter, ‘are certainly not economic men in the theoretical sense.’
According to David McClelland, entrepreneurship has to do with an individual’s so called need for achievement (referred to n-Achievement). He identified three features of entrepreneurs that were related to their need for achievement – (i) Desire to accept responsibility for solving problems, setting goals and reaching the goals; (ii) A willingness to accept moderate risks; (iii) A desire to know the outcomes of their decisions.
It was widely believed that a high achievement motivation has a strong likelihood of predicting entrepreneurial behaviour. Individuals with high achievement motive tend to take keen interest in situations of high risk, desire for responsibility and a desire for a concrete measure of task performance.
According to Fredrik Barth, entrepreneurship has essentially to do with connecting two spheres in the society, between which there exists a difference in value. Something which is cheap in one sphere, may be expensive in another sphere. Barth, one of the leading anthropologists of the world, states that entrepreneurial behaviour means to connect two different spheres in the society, between which there is a huge discrepancy in value.
Economists present him as a perceiver of otherwise unnoticed opportunity, organisation builder, adaptor of new profitable activity and beneficiary thereof. Sociologists present him as a personality moulded by various practices of social enforcement and values imbibed in him. Psychologically, entrepreneurship is a vigorous application of the person’s energies towards the long-cherished goals.
1. Business Entrepreneur:
Business entrepreneurs are individuals who conceive an idea for a new product or service and then create a business to materialise their idea into reality. They tap both production and marketing resources in their search to develop a new business opportunity. They may set up a big establishment or a small business unit.
They are called small business entrepreneurs when found in small business units such as printing press, textile processing house, advertising agency, readymade garments, or confectionery. In a majority of cases, entrepreneurs are found in small trading and manufacturing business and entrepreneurship flourishes when the size of the business is small.
2. Trading Entrepreneur:
Trading entrepreneur is one who undertakes trading activities and is not concerned with the manufacturing work. He identifies potential markets, stimulates-demand for his product line and creates a desire and interest among buyers to go in for his product. He is engaged in both domestic and overseas trade. Britain, due to geographical limitations, has developed trade through trading entrepreneurs. These entrepreneurs demonstrate their ability in pushing many ideas ahead to promote their business.
3. Industrial Entrepreneur:
Industrial entrepreneur is essentially a manufacturer who identifies the potential needs of customers and tailors a product or service to meet the marketing needs. He is a product-oriented man who starts in an industrial unit because of the possibility of making some new product. The entrepreneur has the ability to convert economic resources and technology into a considerably profitable venture. He is found in industrial units as the electronic industry, textile units, machine tools or video cassette tape factory and the like.
4. Corporate Entrepreneur:
Corporate entrepreneur is a person who demonstrates his innovative skill in organising and managing corporate undertaking. A corporate undertaking is a form of business organisation which is registered under some statute or Act which gives it a separate legal entity. A trust registered under the Trust Act, or a company registered under the Companies Act are example of corporate undertakings. A corporate entrepreneur is thus an individual who plans, develops and manages a corporate body.
5. Agricultural Entrepreneur:
Agricultural entrepreneurs are those entrepreneurs who undertake agricultural activities as raising and marketing of crops, fertilisers and other inputs of agriculture. They are motivated to raise agricultural products through mechanisation, irrigation and application of technologies for dry land agriculture products. They cover a broad spectrum of the agricultural sector and includes its allied occupations.
Types of Entrepreneur – On the Basis of the Use of Technology, Motivation, Stages of Development and Others
The application of new technology in various sectors of the national economy is essential for the future growth of business.
We may broadly classify these entrepreneurs on the basis of the use of technology as follows:
1. Technical Entrepreneur:
A technical entrepreneur is essentially compared to a “craftsman.” He develops improved quality of goods because of his craftsmanship. He concentrates more on production than marketing. He does not do much sales generation by and does not do various sales promotional techniques. He demonstrates his innovative capabilities in matter of production of goods and rendering of services. The greatest strength which the technical entrepreneur has is his skill in production techniques.
2. Non-Technical Entrepreneur:
Non-technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business.
3. Professional Entrepreneur:
Professional entrepreneur is a person who is interested in establishing a business but does not have interest in managing or operating it once it is established. A professional entrepreneur sells out the running business and starts another venture with the sales proceeds. Such an entrepreneur is dynamic and he conceives new ideas to develop alternative projects.
Motivation is the force that influences the efforts of the entrepreneur to achieve his objectives. An entrepreneur is motivated to achieve or prove his excellence in job performance. He is also motivated to influence others by demonstrating his business acumen.
1. Pure Entrepreneur:
A pure entrepreneur is an individual who is motivated by psychological and economic rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego or status.
2. Induced Entrepreneur:
Induced entrepreneur is one who is induced to take up an entrepreneurial task due to the policy measures of the government that provides assistance, incentives, concessions and necessary overhead facilities to start a venture. Most of the induced entrepreneurs enter business due to financial, technical arid several other facilities provided to them by the state agencies to promote entrepreneurship.
A person with a sound project is provided package assistance to his project. Today, import restriction and allocation of production quotas to small units have induced many people to start a small-scale industry.
3. Motivated Entrepreneur:
New entrepreneurs are motivated by the desire for self-fulfillment. They come into being because of the possibility of making and marketing some new product tor the use of consumers. If the product is developed to a saleable stage, the entrepreneur is further motivated by reward in terms of profit.
4. Spontaneous Entrepreneur:
These entrepreneurs start business there by natural talents. They are persons with initiative, boldness and confidence in their ability which motivate them to undertake entrepreneurial activity. Such entrepreneurs have a strong conviction and confidence in their inborn ability.
The development of a new venture has a greater chance of success. The entrepreneurs a new and open field of business. The customer’s approval to the new product gives them psychological satisfaction and enormous profit. The industrial units are identified as units of high growth, medium growth and low growth industries and as such we have “Growth Entrepreneur” and “Super-Growth Entrepreneur.”
1. Growth Entrepreneur – Growth entrepreneurs are those who necessarily take up a high growth industry which has substantial growth prospects.
2. Super-Growth Entrepreneur – Super-growth entrepreneurs are those who have shown enormous growth of performance in their venture. The growth performance is identified by the liquidity of funds, profitability and gearing.
Entrepreneurs may also be classified as the first generation entrepreneur, modern entrepreneur and classical entrepreneur depending upon the stage of development.
They are explained below:
1. First-Generation Entrepreneur – A first-generation entrepreneur is one who starts an industrial unity by innovative skill. He is essentially an innovator, combining different technologies to produce a marketable product or service.
2. Modern Entrepreneur – A modern entrepreneur is one who undertakes those ventures which go well along with the changing demand in the market. They undertake those ventures which suit the current marketing needs.
3. Classical Entrepreneur – A classical entrepreneur is one who is concerned with the customers and marketing needs through the development of a self-supporting venture. He is a stereotype entrepreneur whose aim is to maximise his economic returns at a level consistent with the survival of the firm with or without an element of growth.
1. Innovating Entrepreneurs:
Innovating entrepreneurship is characterised by aggressive assemblage in information and analysis of results, deriving from a novel combination of factors. Men/women in this group are generally aggressive in experimentation who exhibit cleverness in putting attractive possibilities into practice. One need not invent but convert even old established products or services by changing their utility, their value, and their economic characteristics into something new, attractive and utilitarian.
Therein lies the key to their phenomenal success. Such an entrepreneur is one who sees the opportunity for introducing a new technique of production process or a new commodity or a new market or a new service or even the reorganisation of an existing enterprise.
Innovating entrepreneurs are very commonly found in developed countries. There is dearth of such entrepreneurs in underdeveloped countries. A country with little or no industrial tradition can hardly produce innovating entrepreneurs. Such entrepreneurs can emerge and work only when a certain level of development is already achieved and people look forward to change and progress.
Innovating entrepreneurs played the key role in the rise of modem capitalism through their enterprising spirit, hope of money making, ability to recognise and exploit opportunities, etc. Innovative entrepreneurs are creative and always bring in innovation in their work.
2. Imitative Entrepreneurs:
Imitative entrepreneurship is characterised by readiness to adopt successful innovations by entrepreneurs. They imitate techniques and technology innovated by others. Thy are adoptive and more flexible.
Imitative entrepreneurs are also revolutionary and important. The importance of these humbler entrepreneurs who exploit possibilities as they present themselves and mostly on a small-scale must not be underestimated. In the first place, such adaptation requires no mean ability. It often involves what has aptly been called ‘subjective innovation’, that is the ability to do things which have not been done before by the particular industrialist, even though, unknown to him, the problem may have been solved in the same way by others.
By western standards, an imitative entrepreneur may be a pedestrian figure, an adopter and imitator rather than a true innovator. He is more an organiser of factors of production than a creator. But in a poor country attempting to industrialise, he is nevertheless a potent change producing figure. He can set in motion the chain reaction which leads to cumulative progress. This humbler type of entrepreneur is important in undeveloped countries.
The reason for the backwardness of the underdeveloped countries lies in the fact that they are deficient in innovating and imitating entrepreneurs when they are found in abundance in developed countries. Men are needed who can imitate the technologies and products to the particular conditions prevailing in such countries.
And at times there is a need of changing and adjusting the new technologies to their special conditions. Such countries, primarily need imitators who are responsible for transforming the system with the limited resources they possess.
3. Fabian Entrepreneurs:
Fabian entrepreneurship is characterised by great caution and scepticism in practising any change. Such entrepreneurs have neither will to introduce new changes nor desire to adopt new methods innovated by the most enterprising entrepreneurs. Such entrepreneurs are shy and lazy. Their dealings are determined by customs, religion, tradition and past practices. They are not much interested in taking risk and they try to follow the footsteps of their predecessors.
4. Drone Entrepreneurship:
Drone entrepreneurship is characterised by a refusal to adopt and use opportunities to make changes in production. Such entrepreneurs may even suffer losses but they do not make changes in production methods. They are laggards because they continue in their traditional way and in fields their product loses its marketability or their operation becomes uneconomical — they are pushed out of the market.
5. Aspiring Entrepreneurs:
Aspiring entrepreneurs dream of starting a business; they hope for the chance to be their own bosses, but they have not yet made the leap from their current employment into the uncertainty of a startup.
6. Lifestyle Entrepreneurs:
Lifestyle entrepreneurs have developed an enterprise that fits their individual circumstances and style of life. Their basic intention is to earn an income for themselves and their families.
7. Growth Entrepreneurs:
Growth entrepreneurs have both the desire and ability to grow as fast and as large as possible.
8. Opportunist Entrepreneurs:
Opportunist entrepreneurs are those who have grabbed an opportunity which has come in their way.
The new electronic or e-entrepreneurs are mostly concerned with “click-through schemes and capturing eye-balls.” The e-entrepreneur comes in many modes. Young and ambitious, older and corporate based international and risk taking.
Homemaker entrepreneur is a mompreneur. Entrepreneurship is one way for women to get around corporate glass ceiling (not everyone can do an Indra Nooyi). It also gives them the flexibility to care for the home while avoiding barriers — and bosses — who come with traditional jobs, although there are bound to be other hurdles. For the 21st century women, there’s no business like own business.
Types of Entrepreneur – On the Basis of Nature of Entrepreneur, Development Momentum and Various Activities
By defining entrepreneur, we know that he is the person who dreams about his business and after seeing the dreams, it becomes true.
There are various types of entrepreneur as follows:
1. On the basis of nature of entrepreneur,
2. On the basis of development momentum,
1. On the Basis of Nature of Entrepreneur:
There are various type of entrepreneurs found in the society.
Therefore, types of entrepreneur are classified as under:
(a) Innovative Entrepreneur
(b) Imitative Entrepreneur
(c) Fabian Entrepreneur
(d) Drone Entrepreneur.
(a) Innovative Entrepreneur:
An innovative entrepreneur, who believes in following facts, is termed as an innovative entrepreneur:
(i) New changes.
(ii) New Production system.
(iii) Establish new plants and units.
(iv) Search of new market.
(v) New management system.
(vi) Emphasize on research and survey.
(vii) Introduce new resources in venture.
(viii) Revolutionary tendency.
(ix) Product diversification.
Schumpeter Says, “They use new combination in venture.”
(b) Imitative Entrepreneur:
These type of entrepreneur are imitators (followers) of successful entrepreneurs.
They have the following characteristic features in them:
(i) They don’t believe in risk taking
(ii) They don’t believe in new type of innovation
(iii) They don’t believe in research and survey programme.
(iv) They always keep a watch on the successful activities of the successful entrepreneurs and then implement in their business.
Generally, this type of entrepreneur is found in under developed countries.
According to B.F. Hoeslitz, “In a developing country or economy not only Schumpeter innovator but also imitative entrepreneur plays an important role.”
“The talent of imitative entrepreneur should not be under estimated. They are revolutionary and agents of change.”
(c) Fabian Entrepreneur:
Fabian entrepreneur, is a type of entrepreneur, who runs his business very carefully. They don’t take any type of risk in venture. They always stay in uncertain condition. They adopt successful production process, techniques and technology, successful market and products in their own business.
They are cautious and skeptical in experimenting change in their enterprises. Such entrepreneurs are shy, lazy and lethargic. They are imitative by nature and are not determined and also lack power.
(d) Drone Entrepreneur:
Drone entrepreneurs are characterized by a refusal to adopt opportunities to make changes in production formula even at the cost of severely reduced returns –
(i) They are alert towards innovation.
(ii) They believe in comfortable life.
(iii) They don’t do anything regarding risk challenges.
(iv) They always adopt old production process.
On the basis of development momentum, types of entrepreneur may be classified as under:
(a) Prime Mover
(b) Manager Type Entrepreneur
(c) Indicator Type Entrepreneur
(d) Satellite Type Entrepreneur
(e) Local trading Type Entrepreneur
(a) Prime Mover – This type of entrepreneur always gives emphasis on development process and functions. He gives more attention towards new changes, new products, new plants and machinery, introductions to advance technology, new production process or techniques and new market. They easily adopt challenges in market.
(b) Manager Type Entrepreneur – Those entrepreneurs who conduct business with full management skill and knowledge. They don’t give any contribution in unit expansion. They effectively manage on external factors of venture like suppliers, customers and investors.
(c) Indicator Type Entrepreneur – They give a rapid speed to speed-up the pace of economic development. They believe in innovation diffusion process. They adopt simple production system, ideas regarding research and survey programme, search of new product, product diversification.
(d) Satellite Type Entrepreneur – They conduct all types of subsidiary industries and business. They do their work as supplier and after some time start their self-business. Satellite type of entrepreneur includes manager, supplier and assistants.
(e) Local Trading Type Entrepreneur – The working area of local trading type entrepreneur is very limited. They believe in less production, less investment and less work. They fulfill the additional need of customers by goods and products.
On the basis of various activities there are different types of entrepreneur.
(a) Sole Self Employed Entrepreneur
(b) Work force Builders Entrepreneur
(c) Product Innovator Entrepreneur
(d) Unutilised Resource Exploiter Entrepreneur
(e) Economy Scale of Entrepreneur
(f) Model Entrepreneur
(a) Sole Self Employed Entrepreneur – This type of entrepreneur have their own business or profession. They are single policy makers, decision makers and manager of their own business. Such as sole trader, doctor, lawyer etc.
(b) Work Force Builder Entrepreneur – All the machines, computer instructor and operator, airlines and all engineering services, are included in this type of entrepreneur and those person who are involved in above activities are known as work force builders.
(c) Product Innovator Entrepreneur – They design new products, create new products. They have competitive nature and are termed as product innovator entrepreneur.
(d) Unutilized Resource Exploiter Entrepreneur – This type of entrepreneur exploit resources and provide productive structure to resources for e.g., mining prospectus, real estate developers etc.
(e) Economy Scale of Entrepreneur – They provide discount and rebates to customer or buyer. For e.g., postal business traders and speculator.
(f) Model Entrepreneur – They conduct business for social welfare and benefit. They give more emphasis on business expansion and product diversification. They generate employment to society.
Types of Entrepreneur – On the Basis of Types of Business, Technology, Motivation, Growth, Stages in Development, Areas and Other Categories of Entrepreneurs
Entrepreneurship is the practice of starting new organizations, mature organizations, and particularly new business generally in response to identified opportunities.
There are basically two types of entrepreneurship which are:
(1) Opportunity-based entrepreneurship, and
(2) Necessity-based entrepreneurship.
(1) Opportunity-Based Entrepreneurship:
It is entirely prompted, encouraged and nurtured by positive opportunities thrown up by events, circumstances. When an entrepreneur perceives a business opportunity and chooses to pursue this as an active career choice is known as opportunity-based entrepreneurship.
(2) Necessity-Based Entrepreneurship:
It is based on ‘Necessity is the mother of invention’. As the necessity is the greatest force to be reckoned with, in all kinds of human endeavour, an entrepreneur is left with no other viable option to earn a living. It is not the choice but compulsion, which makes him/her, choose entrepreneurship as a career.
(I) On the Basis of Types of Business:
1. Business entrepreneur – Entrepreneurs who deal in manufacturing and trading aspect of any business are called business entrepreneurs. They convert ideas into reality. For example, small trading houses, manufacturing business are few of them.
2. Trading entrepreneur – Entrepreneurs who undertake trading activities and are very much concerned with marketing activities at domestic and international levels are trading entrepreneurs. For example, export and import houses.
3. Industrial entrepreneur – Entrepreneurs who undertake only manufacturing activities such as new product development like textile, electronics etc., are known as industrial entrepreneur.
4. Corporate entrepreneur – Entrepreneurs who are interested in management part of the organisation and coordinate skills to manage a corporate undertaking like Ambanis, Tatas etc., are corporate entrepreneurs.
5. Agricultural entrepreneur – Entrepreneurs who are interested in the production and marketing of agricultural inputs and outputs like dairy, horticulture, forestry etc., are known as agricultural entrepreneurs.
1. Technical entrepreneur – Entrepreneurs who are interested in the production process and possess innovative skills in manufacturing, quality control, product design etc., are known as technical entrepreneurs.
2. Non-technical entrepreneur – Entrepreneurs who are interested in the marketing, distribution and development of cheaper products are known as non-technical entrepreneurs.
3. Professional entrepreneur – Entrepreneurs who are interested in creating new ideas or technology and selling them are known as professional entrepreneurs.
1. Pure entrepreneur – Entrepreneurs who are motivated by psychological and economical rewards are known as pure entrepreneurs.
2. Induced entrepreneur – Entrepreneurs who are motivated by incentives, concessions, benefits offered by government are known as induced entrepreneurs.
3. Motivated entrepreneur – Entrepreneurs who are motivated by sense of achievement and fulfillment are known as motivated entrepreneur.
4. Spontaneous entrepreneur – Entrepreneurs with inborn traits of confidence, vision and initiative are known as spontaneous entrepreneur.
1. Growth entrepreneur – Entrepreneurs who enter a sector with a high growth rate and are positive thinkers are known as growth entrepreneurs.
2. Super growth entrepreneur – Entrepreneurs who enter a business and show a quick, steep and upward growth curve are known as super growth entrepreneur.
3. Classical entrepreneur – Entrepreneurs who give more importance to consistent returns than to growth and are concerned about customer and market needs are known as classical entrepreneurs.
1. First generation entrepreneur – Entrepreneurs who are innovators, risk takers and are among the firsts in family to enter into business are first generation entrepreneurs.
2. Modern entrepreneur – Entrepreneurs who consider feasibility of business and can adapt to changes and dynamic market are known as modern entrepreneurs.
(VI) On the Basis of Areas:
1. Rural entrepreneur – Entrepreneurs who establish their business unit in rural areas to enhance the improvement of the living condition of the rural people is known as rural entrepreneur.
2. Urban entrepreneur – Entrepreneurs who are establishing their business unit in urban and developed areas are known as urban entrepreneur.
(VII) Other Categories of Entrepreneurs:
Besides the above classification, there are some other categories of entrepreneurs.
1. Male entrepreneur – Any enterprise owned, managed and controlled by a male member is known as male entrepreneur.
2. Female entrepreneur – Any enterprise owned, managed and controlled by a female member is known as female entrepreneur.
3. Small-scale entrepreneur – An undertaking having an investment in plant and machinery of not more than Rs.1 crore is known as small-scale entrepreneur.
4. Medium-scale entrepreneur – An undertaking where people are working on the optimum size to derive maximum efficiency in production.
5. Large-scale entrepreneur – Undertakings where large number of workers are working with power driven machines are known as large scale entrepreneurs.