A complete guide to types of Entrepreneurs. Everything you need to know about the types of entrepreneurs. Entrepreneur is the most important factor in the process of economic development.
The Entrepreneur occupies the central place in the growth process because he initiates development in a society and carries it forward. As a change agent, the entrepreneur is the first and foremost a catalyst for change.
The function that is specific to entrepreneur is the ability to take the factors of production-land, labour and capital and use them to produce new goods or services.
The entrepreneur perceives opportunities. He works as an originator of a new business venture and also tries to improve an organization unit by initiating productive changes.
Clarence Danhof had classified the entrepreneurs into four categories:- 1. Innovative Entrepreneurs 2. Imitative Entrepreneurs 3. Fabian Entrepreneurs 4. Drone Entrepreneurs.
Arthur H. Cole had divided the history of American entrepreneurship into three stages of entrepreneurial thought process:- 1. Empirical Stage 2. Rational Stage 3. Cognitive Stage.
The various types of entrepreneur are classified as under:
1. According to the Type of Business 2. According to Motivation 3. According to the Use of Technology 4. According to Stages of Development 5. According to Capital Ownership 6. According to Gender and Age 7. According to Area 8. According to Scale 9. Others.
Different categories of entrepreneurs are:-
1. On the Basis of the Kind of Business – (i) Industrial Entrepreneurs (ii) Agricultural Entrepreneurs (iii) Trading Entrepreneurs (iv) Corporate Entrepreneurs
2. Based on Utilization of Technology – (i) Technical Entrepreneurs (ii) Non-Technical Entrepreneurs
3. On the Basis of the Level of Motivation – (i) Pure Entrepreneurs (ii) Induced Entrepreneurs (iii) Spontaneous Entrepreneurs
4. On the Basis of Profession – (i) Professional Entrepreneurs (ii) Forced Entrepreneurs (iii) Individual Entrepreneurs
5. On the Basis of Experience – (i) Entrepreneurs by Inheritance (ii) First Generation Entrepreneurs.
The various types of entrepreneurs may be also classified as:-
1. Socio-Cultural Classification – i. Immigrant Entrepreneur ii. Ethnic Entrepreneur iii. Minority Entrepreneur iv. Women Entrepreneur 2. Motivational Classification – i. First-Generation Entrepreneur ii. Family-Business Entrepreneur 3. Entrepreneurial Experience Classification – i. Novice Entrepreneurs ii. Habitual Entrepreneurs 4. Technical Experience Classification – i. The “Research” Technical Entrepreneur ii. The “Producer” Technical Entrepreneur iii. The “User” Technical Entrepreneur iv. The “Opportunist” Technical Entrepreneur.
Additionally, some other types of entrepreneurs are:-
1. Solo Operators 2. Active Partners 3. Inventors 4. Buyers 5. Life Timers 6. Trading Entrepreneur 7. Second Generation Entrepreneurs 8. Classical Entrepreneur 9. Private Entrepreneur 10. State Entrepreneur 11. Joint Entrepreneur 12. Man entrepreneur 13. Young Entrepreneur 14. Old Entrepreneur 15. Middle-Aged Entrepreneur 16. Urban Entrepreneur 17. Rural Entrepreneur 18. Large Scale Industry Entrepreneur 19. Medium Scale Industry Entrepreneur 20. Small Scale Industry Entrepreneur 21. Tiny Industry Entrepreneur 22. Spiritual Entrepreneur 23. Social Entrepreneurs 24. The Edupreneurs 25. Event Entrepreneur 26. The Knowledge Entrepreneur.
A complete Guide to Types and Classification of Entrepreneurs
The importance and necessity of entrepreneurs in different sectors of the economy is undisputed. There has been an endeavour to classify the entrepreneurs on various grounds. There are different classifications.
Clarence Dahof’s Classification:
Clarence Danhof had classified the entrepreneurs into four categories:
i. Innovative Entrepreneurs:
This category of entrepreneurs is characterized by innovativeness. Innovative entrepreneurs refer to those who introduce new combinations of factors of production. This category of entrepreneurs visualizes the opportunity and introduces novel ideas, combinations into the production process. They may develop new ideas, concepts, application of new technology, and find new markets.
ii. Imitative Entrepreneurs:
This set of entrepreneurs adopts and imitate the innovations and business policies introduced by the innovative entrepreneurs. They are also referred to as adoptive entrepreneurs. These types of entrepreneurs imitate the entrepreneurs and follow similar entrepreneurial pursuit.
They imitate the technology and methods that are found successful. Usually in developing economies and LDCs, this class of entrepreneurs is very useful as because the entrepreneurs of these countries find it difficult to bear the high cost involved in the process of innovation. Imitative entrepreneurs significantly contribute in the growth of enterprise in developing countries.
iii. Fabian Entrepreneurs:
These categories of entrepreneurs usually imitate other innovations only when they are certain that failure to do so would be detrimental for their business. They are very much doubtful and skeptic in their approach towards adopting new technology or trade. This set of entrepreneurs is not dynamic and adaptive. They are often cautious about their moves.
iv. Drone Entrepreneurs:
Drone entrepreneurs refer to the type of entrepreneurs who are very traditional, orthodox and conservative in outlook. They are very keen in retaining their traditional business and traditional machinery or systems of the business. They are contented with their existing technology of production despite of changes in the business environment and society. Drone entrepreneurs are usually reluctant to adopt the changes.
Arthur Harrison. Cole Classification:
Actually, Arthur H. Cole had divided the history of American entrepreneurship into three stages of entrepreneurial thought process – Empirical stage (from scratch to 1860), Rational stage (1860-1890) and Cognitive stage (from 1890 onwards).
Accordingly, entrepreneurs can be classified into three broad categories:
(a) Empirical – This category of entrepreneurs rarely introduce anything radical, innovative or revolutionary. They are guided by the principle of rule of thumb.
(b) Rational – The rational entrepreneurs have the information and are aware about the business environment. They understand the prevailing economic conditions and are ready to introduce modifications when necessary.
(c) Cognitive – Cognitive entrepreneurs are sophisticated. They have experts to advise them and acts upon accordingly. They introduce changes whenever necessary .These changes may completely break from the existing scheme of enterprise.
There have been efforts to classify entrepreneurs on different grounds. There are various types of entrepreneurs which have been classified on the grounds like type of enterprise, application of technology, gender, place of origin, etc.
Different Categories of Entrepreneurs:
Now, let us try to enlist the different categories of entrepreneurs:
1. On the Basis of the Kind of Business:
(i) Industrial Entrepreneurs:
These entrepreneurs are associated with the manufacturing process and industrial activities. These entrepreneurs may be involved in any large scale, medium scale or small scale industries.
(ii) Agricultural Entrepreneurs:
Agricultural entrepreneurs are the entrepreneurs involved in agricultural and allied activities. They can also be engaged in horticulture, floriculture, sericulture, apiculture, animal husbandry, dairy farming etc.
(iii) Trading Entrepreneurs:
These entrepreneurs are associated only with trading activities. They do not engage themselves with the manufacturing work. They undertake wholesale or retail trading activities.
(iv) Corporate Entrepreneurs:
These entrepreneurs promote and establish corporate empires. They are successful at initiating and running corporate companies.
2. Based on Utilization of Technology:
(i) Technical Entrepreneurs:
These entrepreneurs are technically sound and trained. They use their technical skills in establishing manufacturing units and improving the manufacturing units with latest level of technology. They highly influence the production technique in vogue.
(ii) Non-Technical Entrepreneurs:
These entrepreneurs are remotely concerned with the technical aspects of the entrepreneurship. They focus on evolving alternative strategies of marketing and distribution in order to promote their business.
3. On the Basis of the Level of Motivation:
(i) Pure Entrepreneurs:
They are guided by the profit motive. The economic goals drive these entrepreneurs to undertake business activities. They have faith in their own performance.
(ii) Induced Entrepreneurs:
These entrepreneurs are induced to pursue entrepreneurial pursuits. There are various government agencies or NGOs who induce people to undertake entrepreneurial activities. The government also provides incentives, subsides, tax exemptions, financial and technical assistance in order to induce persons to become entrepreneurs. Skill training and EDPs are conducted to generate entrepreneurial spirit among the persons.
(iii) Spontaneous Entrepreneurs:
Spontaneous entrepreneurs have the inherent urge and aptitude to become entrepreneurs. They have intrinsic passion to set up their own enterprises and pursue their entrepreneurial pursuits.
4. On the Basis of Profession:
(i) Professional Entrepreneurs:
These entrepreneurs have keen interest in establishing business enterprises. However, once the enterprises are established the professional entrepreneurs sell out the existing enterprises and move out to start new enterprises. They never cling to the enterprises established by them.
(ii) Forced Entrepreneurs:
(iii) Individual Entrepreneurs:
Individual entrepreneurs take up their entrepreneurial activities at individual level. They can start both large scale enterprises and small enterprises. Usually individual entrepreneurs are found in small scale sectors.
5. On the Basis of Experience:
(i) Entrepreneurs by Inheritance:
These entrepreneurs inherit their family business from the previous generation. They enjoy the accumulated experience of the previous generations.
(ii) First Generation Entrepreneurs:
These entrepreneurs had not inherited any family business. They had established their own enterprises. They are self-made and lack any previous entrepreneurial experiences.
There are other categories of entrepreneurs as well.
(a) Women Entrepreneurs:
Women entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise.
(b) Rural Entrepreneurs:
Rural entrepreneurs are that class of entrepreneurs who carry out entrepreneurial activities by establishing Industrial and business units in the rural sector of the economy.
(c) Solo Entrepreneurs:
Solo entrepreneurs establish their enterprises individually. They use their own capital, intelligence to establish and run the enterprise successfully.
These entrepreneurs are highly creative. They take the initiative of inventing new products and methods of production.
(e) Social Entrepreneurs:
These entrepreneurs are involved in bringing about development and transformation of the society. They influence various fields including health, education, human rights, and environment along with enterprise development.
Clarence Danhof classified entrepreneurs into four types on the basis of development stages – (At the initial stage of economic development, entrepreneurs have less initiative and drives and as economic development proceeds, they become more innovating and enthusiastic).
He is one who introduces new goods, inaugurates new method of production, discovers new market and reorganises the enterprise. It is important to note that such entrepreneurs can work only when a certain level of development is already achieved and people look forward to change and improvement.
There are characterised by readiness to adopt successful innovations inaugurated by innovating entrepreneurs. Imitative entrepreneurs do not innovate the changes themselves, they only imitate techniques and technology innovated by others.
Such types of entrepreneurs are particularly suitable for the under-developed regions for bringing a mushroom drive of imitation of new combinations of factors of production already available in developed regions.
They are characterised by very great caution in experimenting any change in their enterprise. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position in the enterprise.
These are characterised by a refusal to adopt opportunities to make changes in production formula even at the cost of severely reduced returns relative to other like producers. Such entrepreneurs may ever suffer losses but they are not ready to make changes in their existing production methods.
These are the entrepreneurs who essentially work alone and if needed at all, employ a few employees. In the beginning most of the entrepreneurs start their enterprises like that.
ii. Active Partners:
These are the entrepreneurs who start or carry on their enterprise as a joint venture. Entrepreneurs who only contribute funds to one enterprise but do not actively participate in business activity are called simply ‘partners’.
Such entrepreneurs with their competence invent new product. Their basic interest lies in research and innovative activities.
These are those entrepreneurs who do not like to bear much risk. Hence, in order to reduce risk involved in setting up a new enterprise, they like to buy the ongoing one.
v. Life Timers:
These entrepreneurs take business as an integral part of their life. Usually, the family enterprise and business.
Types of Entrepreneurs – Socio-Cultural, Motivational, Entrepreneurial Experience and Technical Experience Classification
The various types of entrepreneurs with four major classifications are given below:
Type # 1. Socio-Cultural Classification:
This classification of the types of entrepreneurs is based upon socio-cultural factors.
i. Immigrant Entrepreneur:
An individual who has a recent arrival in a country and starts a business as a means of economic survival is called an immigrant entrepreneur. This group may involve a migration network linking migrants, former migrants, and non-migrants with a common origin and destination. For example, Sabeer Bhatia of Hotmail(dot)com fame would fall in this category of immigrant entrepreneur, as he migrated from Bangalore to the US and started this venture there. Later, Hotmail was acquired by Microsoft and Sabeer made good money out of the deal.
ii. Ethnic Entrepreneur:
Ethnic entrepreneurs have “…a set of connections and regular patterns of interaction among people sharing common national background or migration experiences”. The Marwaris who migrated long back from their native place Marwar in Rajasthan to create businesses in West Bengal would fall in this category.
Prominent Marwari entrepreneurs are the Birlas, Singhanias, Laxmi Niwas Mittal (the Steel Baron), Kishore Biyani (of Big Bazaar), etc. Similarly, the Parsi businessmen in the Western part of India originally hailed from erstwhile Persia (now Iran). Tatas are the most prominent Parsi, with their founder Jamshetji Tata as the first-generation entrepreneur.
iii. Minority Entrepreneur:
Minority entrepreneur is an entrepreneur who is not of the majority population. U.S. Federal categories include Black, person of Hispanic or Latin American ancestry, and person of Asian, Pacific Islander, American Indian, or Alaska Native descent. There are many Indian entrepreneurs in the U.S., who fall in this category. Amar Gopal Bose, a professor at MIT and the founder of immensely successful Bose Corporation (manufacturing leading-edge audio systems) would qualify to fall in this category.
iv. Women Entrepreneur:
As the name of this type of entrepreneur suggests, it involves women at the forefront of entrepreneurship. Shri Mahila Griha Udyog Lijjat Papad is one such organization. They pride themselves in being a women’s organization —of the women, by the women, and for the women. It was started in 1959 with seven lady members with a borrowed sum of Rs.80 at Girgaum in Mumbai. Another typical example of this type of entrepreneur is Kiran Majumdar Shaw, whose entrepreneurial endeavour has been detailed out in a caselet.
This classification is based upon the motivation of the entrepreneur to start a new venture. Broadly, this classification has two categories, namely first-generation entrepreneur and family-business entrepreneur.
i. First-Generation Entrepreneur:
A first-generation entrepreneur does not have any family business prior to starting his/her own business venture. Dhirubhai Ambani (Reliance), Kiran Majumdar Shaw (Biocon), N. R. Narayana Murthy (Infosys), Naresh Goyal (Jet Airways) all belong to this category.
First-generation entrepreneurs are of two types:
a. Self-Actualizer Entrepreneurs:
Self-actualizer entrepreneurs are those who started their business driven by a thirst for achievement and a sense of independence and autonomy. For example, Sunil Bharti Mittal (Airtel) is driven by self-actualization.
b. Discontented Entrepreneur:
Discontented entrepreneur is the one who is unhappy with present working conditions in the organization where he is serving and decides to move on to start his own enterprise. The erstwhile MD of Taj Hotels, Ajit Kerkar was ousted unceremoniously by Ratan Tata in 1997 due to the growing discontent between the two.
Immediately afterwards, Kerkar set up Tulip Star Hotels as an entity to manage and own properties. In a short span after he quit the Taj group in 1997, The Tulip Star either owns, manages or markets a number of properties that include the Bogmallo Beach Resort and the Nizmar Resort – in Goa, the Kumarakom Lake Resort, the Aquaserene, Siena Village in Munnar, Renaissance, Cochin which are all in Kerala.
Other properties under Tulip Star is Capitol in Bangalore, Tulip Manohar in Hyderabad, and Revival in Baroda. Out of this the company has equity participation in Tulip Star, Mumbai; and the Bogmallo Beach Resort in-Goa. It also has stakes in the Juhu Centaur, Mumbai.
ii. Family-Business Entrepreneur:
Family-business entrepreneurs are the followers of family tradition role models. A typical example is that of Aditya Vikram Birla (1944-1995), who created about 75 factories for his business group in a career span of 25 years. Aditya Birla was the son of industrialist Basant Kumar Birla (popularly known as BK). His group is now known after him (Aditya Birla Group) and managed by his son Kumar Mangalam Birla.
This classification of the types of entrepreneurs is based upon the extent of entrepreneurial experience.
There are two broad categories in this classification:
i. Novice and
ii. Habitual entrepreneurs.
i. Novice Entrepreneur:
Novice entrepreneurs can be viewed as individuals with no prior minority or majority business ownership experience, either as a business founder, an inheritor, or a purchaser of an independent business, but who currently own a minority or majority equity stake in’ an independent business that is new, purchased, or inherited. N. R. Narayana Murthy was a novice entrepreneur when he founded Infosys on July 2, 1981 along with six of his colleagues.
ii. Habitual Entrepreneurs:
Habitual entrepreneurs are most often described as persons who have experience owning at least two different firms whether temporarily (serial entrepreneurship) or simultaneously (portfolio entrepreneurship).
a. Serial Entrepreneur:
Serial entrepreneurs can be viewed as individuals who have sold/closed a business in which they had a minority or majority ownership stake, and they currently have a minority or majority ownership stake in a single independent business that is either new, purchased, or inherited.
According to Ryan (2000), serial entrepreneurs thrive off the psychological reward of making an impact as opposed to the wealth to be gained from operating successful ventures. These entrepreneurs are risk takers, having built sufficient wealth (relative to their comfort level); they will invest their money on new ventures that often tend to be vague visions of an unsolved problem.
They view failure as an experience, which will make them stronger and bolder to take on new risks. Some entrepreneurs seem to thrive on the grueling early stages of starting and building a business, and prefer to hand it over for others to manage while they return to the start-up process. Sunil Bharti Mittal (of Bharti Airtel) would qualify for the category of serial entrepreneur as the caselet based on him.
b. Portfolio Entrepreneur:
Portfolio entrepreneurs can be viewed as individuals who currently have minority or majority ownership stakes in two or more independent businesses that are either new, purchased, and/or inherited. Kishore Biyani can be categorized into this category of entrepreneurs, as he owns Big Bazaar, Pentaloon and Central supermarkets (all founded by him) simultaneously.
Jones-Evans (1995) came up with this classification based upon the previous occupational background of the entrepreneurs in the technology sector. A technical entrepreneur is defined as the founder and current owner-manager of a technology-based business, i.e. primarily responsible for its planning and establishment, and currently having some management control of the organization.
i. The “Research” Technical Entrepreneur:
These entrepreneurs are involved in technological research activities at an academic institution or a research laboratory prior to creating their own venture. Professor Amar Gopal Bose of Massachusetts Institute of Technology (MIT) is a typical example of this category. He was into researching acoustic systems and later, created his own corporation called Bose Corporation.
ii. The “Producer” Technical Entrepreneur:
These entrepreneurs have a history of involvement in direct commercial production or development of a product or process, usually in a large organization. A typical example for this type of entrepreneur is—Subroto Bagchi, the co-founder of MindTree Ltd. Bagchi worked as the Chief Executive of Wipro’s Global R&D before co-founding MindTree in 1999. MindTree generated revenue of Rs.12,375 million in the financial year 2008-09.
iii. The “User” Technical Entrepreneur:
Such entrepreneurs may have been involved as an end-users in the application of the specific product or technology (perhaps in support services such as technical support), but without direct involvement in the actual development of the technology.
A typical example is that of Tulsi Tanti, the founder of wind power major Suzlon. Tanti was into his family business of textiles, when power shortages prompted him to install two wind turbines as captive power. Later, buoyed by the success of this technology, he decided to switch-over from textiles to wind power generation. Hence, Suzlon Energy was born.
iv. The “Opportunist” Technical Entrepreneur:
As the name suggests, this kind of entrepreneur is an individual who has identified a technology-based opportunity and, while initiating and managing a small technology-based venture, either has little or no technical experience or whose previous occupational experience was within non-technical organizations.
For example, Azim Hasham Premji inherited Wipro from his father, who was into oil business. Later, Premji realized the potential of information technology and ventured into this business. Rest is history as Wipro is today known as one of India’s IT powerhouses.
Types of Entrepreneurs – According to the Types of Business, Motivation, Use of Technology, Stages of Development and Others
In the initial stages of economic development, entrepreneurs tend to be shy and humble but as the development process picks up speed, they tend to become more enthusiastic and confident. They help make the business environment healthy and development oriented.
Highly enthusiastic and innovative entrepreneurs exist only in developed countries as level of their economic and technological development has reached a certain level whereas in developing and under-developed countries, imitative entrepreneurs are more successful.
However, the various types or entrepreneur are classified as under:
i. Business Entrepreneur:
Business entrepreneurs are those entrepreneurs who conceive the idea of a new product or service and then translate their ideas into reality. Entrepreneur examines the various possibilities of sources of finance, supply of labour, raw-materials or finished product as the case may be.
Business entrepreneur may be undertaking the trading business or manufacturing business but initially the size of the business is very small. As the entrepreneur flourishes, he tends to expand his business.
ii. Trading Entrepreneur:
As the very name indicates trading entrepreneur is concerned with trading activities and not manufacturing. Trading means buying the finished product from the producer and selling to the customer directly or through a retailer.
A trading entrepreneur has to be creative enough as he has to identify the market. He has to identify potential market, create demand through extensive advertisement of his product and thus inspire people to buy his product. For this is inevitable for him to find out the desires, tastes and choices of his customer in domestic as well as international market.
iii. Industrial Entrepreneur:
As the very name indicates, an industrial entrepreneur is one who sets up an industrial unit. He perceives the opportunity to set up his unit, complies with necessary formalities of getting license, power connection, pollution control clearance (if the need be) arrange initial capital, providing securities and guarantees to the financial institutions, making payment of wages and supply necessary technical know-how.
An industrial entrepreneur has the ability to convert economic resources and technology into a considerably profitable venture. Manufacturer of leather products, textiles, electronics, food items and the like are industrial entrepreneurs.
iv. Corporate Entrepreneur:
Corporate entrepreneur is the one who plans, develops and manages a corporate body. He is a promoter, an essential part of board of directors, an owner as well as an entrepreneur. He gets his corporate body registered under the requisite Act which gives his company the status of separate legal entity.
v. Agricultural Entrepreneur:
Agricultural entrepreneur is the one who is engaged in the agricultural activities. He uses latest technology to increase the productivity of agriculture and also adopts mechanisation.
i. Pure Entrepreneur:
Pure entrepreneurs are loopy and obsessed. They have a vision of the future. Pure entrepreneurship is often driven by a belief that a major shift is coming and thus it’s hard to find customers who already understand that they need the product. A pure entrepreneur is developing. He undertakes entrepreneurial activity for his personal satisfaction in Work, ego or status.
ii. Induced Entrepreneur:
Induced entrepreneur is attracted by the various incentives, subsidies and facilities offered by the government. ‘An entrepreneur is not born’—this is no doubt true as every person can be trained to become a good entrepreneur. Most of the Entrepreneurs who enter into business are induced entrepreneur as various kinds of financial, technical and managerial facilities are provided by the government to promote entrepreneurship.
An entrepreneur can develop himself much more by attending EDPs and they can make a stand in the market. Import restrictions, allocation of production quotas to SSIs, reservation of products for small industry etc., have forced many young people to set up a small industry.
Non-Resident Indians (NRIs) and educated unemployed seeking self-employment or newly married bridegrooms by taking financial support of their in-laws may be described as induced entrepreneur. This class of entrepreneur accounts for maximum number of failures because there is no proper screening of misfits.
i. Technical Entrepreneur:
The strength of a technical entrepreneur is in his skill in production techniques. He concentrates more on production than on marketing. He possesses craftsman skill in himself which he applies to develop and to improve the technical aspect of the product.
ii. Non-Technical Entrepreneur:
Unlike technical entrepreneur, non-technical entrepreneur is not concerned with the technical aspect of the product rather he spends more time in developing alternative strategies of the marketing and distribution to promote his business. His target is not to change the production technique but how to increase the demand of the product in which he is dealing.
iii. Professional Entrepreneur:
Professional entrepreneur means an entrepreneur who is interested in floating a business but does not want to manage or operate it. Once the business is established, he sells it out and catches on to float a new business.
i. First Generation Entrepreneur:
First generation entrepreneur are those entrepreneurs who do not possess any entrepreneurial background. They start an industrial unit by means of their own innovative skills.
ii. Second Generation Entrepreneur:
Second generation entrepreneur are those entrepreneurs who inherit the family business firms and pass it from one generation to another.
iii. Classical Entrepreneur:
A classical entrepreneur is a stereotype entrepreneur whose aim is to maximize his economic returns at a level consistent with the survival of the unit but with or without an element of growth.
i. Innovating Entrepreneur:
Innovative entrepreneurs are generally aggressive and possess the art of cleverly putting the attractive possibilities into practice. An innovating entrepreneur is one who introduces new goods, inaugurates new methods of production, discovers new market and re-organises the enterprise. He arranges money, launches an enterprise, assembles the various factors, chooses the competent managers and sets his enterprise go.
Schumpeter’s entrepreneur is of this type. His entrepreneur belongs to that nation which has wide industrial base, modern banking facilities, rich infrastructure, up to date technology and the like. Innovative entrepreneurs do not exist in developing economies where lack of capital, technological know-how blocks the path of innovativeness.
In developed countries, people are highly developed and consistently look forward for change. They want to consume such products which do not commonly exist in the world. They want progress as they have achieved high level of development. Innovating entrepreneur played a key role in the rise of modern capitalism, through their enterprising spirit, hope of making money, and ability to recognise and exploit opportunities.
ii. Imitative Entrepreneurs:
Imitative entrepreneurs are characterised by readiness to adopt successful innovations inaugurated by successful innovating entrepreneurs. Imitative entrepreneurs do not imitate the changes themselves, they only imitate techniques and technologies innovated by others. Such entrepreneurs are significant for under-developed economies because they put such economies on high rate of economic development. Entrepreneurs prefer to imitate the technology already existing somewhere in the world.
However, the talent of imitative entrepreneurs should not be under-estimated. Even imitative entrepreneurs are revolutionary and agents of change. They have ability to do things which have not been done before even though, unknown to them, the problem may have been solved in the same way by others.
Innovative entrepreneur is creative, while imitative entrepreneur is adoptive.
iii. Fabian Entrepreneur:
Fabian entrepreneurs are cautious and skeptical in experimenting change in their enterprises. Such entrepreneurs are shy, lazy and lethargic. They are imitative by nature but are not determined and also lack power. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position of the enterprise.
iv. Drone Entrepreneur:
Drone entrepreneurs are characterised by a refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns. They can suffer loss but are not ready to make changes in their existing production methods. When competition increases, they are pushed out of the market as it becomes uneconomical for them to exist and operate in a competitive market.
6. According to Capital Ownership:
i. Private Entrepreneur:
When an individual or a group of individuals set up an enterprise, arrange finance, bear the risk and adopt the latest techniques in the business with the intention to earn profits, he or the group is called as private entrepreneur/entrepreneurs.
ii. State Entrepreneur:
As the name indicates, state entrepreneur means the trading or industrial venture undertaken by the state or the government itself.
iii. Joint Entrepreneur:
Joint entrepreneur means the combination of private entrepreneur and state entrepreneur who join hands.
7. According to Gender and Age:
i. Man entrepreneur
ii. Woman entrepreneur
iii. Young entrepreneur
iv. Old entrepreneur
v. Middle-aged entrepreneur
8. According to Area:
i. Urban entrepreneur
ii. Rural entrepreneur
9. According to Scale:
i. Large scale industry entrepreneur
ii. Medium scale industry entrepreneur
iii. Small scale industry entrepreneur
iv. Tiny industry entrepreneur.
i. Spiritual Entrepreneur:
Sri Sri Ravi Shankar (SSRS) can be termed as a spiritual entrepreneur. He started his Art of Living foundation 25 years ago which now has a presence in over 140 countries with over 20 million people worldwide having taken its programs. This is an amazing entrepreneurial success.
As said by SSRS, the success of any institution is in the – (i) efficiency of the product. When the product is very useful to the people, it brings benefits; success, then is natural; and (ii) it is important to have philosophy. Those people who only ‘talk the philosophy’ but don’t ‘walk the philosophy’ have very little impact on people. But when you walk the talk, that makes a lasting impact and it helps people walk the talk.
ii. Social Entrepreneurs:
Entrepreneurs are innovative highly motivated and creative thinkers. When these attributes are combined with the drive to solve social problems, a ‘social entrepreneur’ is born. Thus, social entrepreneurs are individuals with innovative solutions to society’s most pressing and daunting social problems.
(iii) Tackling major social issues, and
(iv) Offering new ideas for wide scale change.
Common examples of social entrepreneurs are Florence Nightingale (UK) Maria Montessori (Italy) Muhammed Yunus (Bangladesh) recipient of the 2006 Nobel Peace Prize, Vinoba Bhave (India), Satyam Mishra (India).
Social entrepreneurs are pioneers of innovations that benefit humanity at large. The common element found in each of the above persons is that they are mass recruits of local change, makers of role model proving that citizens who channel their passion into action can do almost anything. “Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionalised the fishing industry (www(dot)skollfoundation(dot)org).”
iii. The Edupreneurs:
The edupreneurs are entrepreneurial minds who have made a landmark in the field of education in any of the areas like – (i) Schooling (ii) Higher Education (iii) Vocational and training (iv) Ancillary segments like admission outsourcing, Database management etc. For instance Amity University, VIT University, Manipal University, ICFAI, entry of foreign universities, Delhi Public School, National Public School etc.
The main purpose of entrepreneurs is to nurture excellence and bring about the education reforms. These edupreneurs ensure that they import quality education along with profit earning. But, as compared to the international standard, Indian edupreneurs are yet to achieve academic excellence else they face the fear of extinction once the foreign universities are allowed to enter the Indian market.
iv. Event Entrepreneur:
Event Entrepreneur can be defined as the one who undertakes to contribute to an event in a unique way. For instance, Michael Fory, a designer by profession, has taken unique task at hand, i.e., designing the queen’s baton for the Common wealth Games to be held in October 2010 in New Delhi Queen’s baton in common wealth games is akin to the Olympic Torch.
The baton goes to all common wealth nations before reaching the games. Then, the queen reads out the message it carries. The baton has to be designed with materials from within the country and it had to represent the country. Folery mixed soil of different columns from different parts of India to create a pattern. The baton is a combination of traditional art and precision engineering.
v. The Knowledge Entrepreneur:
Knowledge can exist and be expressed in many forms, for example, facts, attitudes, opinions, issues, values, theories, reasons, processes, priorities, rules, relationship, risk and probabilities or their combinations.
The knowledge entrepreneur is whose practice is the acquisition, development and commercial exploitation of information knowledge and understanding.
The knowledge entrepreneur discharges many functions like:
(i) Acquire, develop, share, manage and exploit information and knowledge and understanding and the related tools,
(ii) Help end enable others to use and apply them effectively,
(iii) Communicate and share information and complex knowledge and increase understanding,
(iv) Identify and exploit market opportunities for knowledge based products and services, and
(v) Develop and launch new information and knowledge based offerings and services.
More companies have appointed chief knowledge officers (CKOs) so that they can confront the reality of the situation within their organisations.
Types of Entrepreneurs – Innovative Entrepreneurs, Imitating Entrepreneurs, Fabian Entrepreneurs and Drone Entrepreneurs
1. Innovative Entrepreneurs:
They are characterised by effective assemblage of information and the analysis of results originated from different set of combinations. According to Schumpeter, innovative entrepreneurs are those who may raise money to launch an enterprise, assemble the various factors, select top executives and set the organisation operational.
They also identify the opportunity for introducing a new technique or a new commodity or a new market. These entrepreneurs are quite aggressive in experimentation and putting attractive or viable possibilities into practice. Thus, innovative entrepreneurs are one who believe in introducing new goods, adopt new method of production, develop new market and restructure the organisation under their command.
Mostly, Innovative entrepreneurs are the product of developed nations and they are in position to adopt and implement innovative process in action. But underdeveloped nations are unable to have this type of entrepreneurs as they lack resources and expertise to invest in innovation process.
2. Imitating Entrepreneurs:
These entrepreneurs are those entrepreneurs who are unable to innovate the changes themselves but they are capable enough to imitate the techniques and technology innovated by innovating entrepreneurs. Thus, these entrepreneurs are always ready to adopt successful innovation executed by innovating entrepreneurs as there is little involvement of huge capital expenditure in this process.
Developing economies or underdeveloped economies need this type of entrepreneurs. Prospective entrepreneur of these nations prefer to imitate the technology, knowledge and skill developed by innovating entrepreneurs. By western standards, an imitative entrepreneur may be a pedestrian figure, an adopter and imitator rather than a true innovator.
3. Fabian Entrepreneurs:
These entrepreneurs are shy and lazy in their working. Their dealings are guided by the customs, religion, tradition and past practices. Actually, Fabian entrepreneurs are always conscious in their dealings and believe in skepticism in initiating any change. They do not have any will power to initiate new changes as well as lack desire to adopt new methods innovated by innovating entrepreneurs.
Thus, they always believe in tested routes of production and not interested in taking risk. Actually, they are habitual of following the paths directed by earlier entrepreneurs. They avoid in taking challenges in production system and that is why they are unable to maximise the fruits of entrepreneurial actions.
4. Drone Entrepreneurs:
These entrepreneurs are those who are not inclined to bring changes in their production system as demanded by the change in consumer preferences, technological innovation, economic and social behaviour of the prospective customers. Market always provides opportunities to the entrepreneurs but this type of entrepreneurs generally fail to use these opportunities in profitable way.
Due to this reason, they fail to earn profit or even suffer loss. They are traditional in their approaches and do not make changes in production methods. They generally risk their identity as their product loses marketability and at the end uneconomic or unviable operation pushes them out of the market.