Types of Entrepreneurs
An entrepreneur builds and operates his own enterprise. Entrepreneurs will differ in mindsets and their approaches. Various types of entrepreneurs are possible. They originate from
- Various backgrounds
- Various industries
- Various perspectives.
And also their characteristics, strengths, challenges and motivations will vary.
Entrepreneurs are categorized into distinct types. The categorization is based on their
- Goals
- Motivations
- Innovative thinking
- Approaches
- Risk-taking capabilities.
A thorough analysis of these differences is essential for categorization.
An entrepreneur has to withstand the industrial competition. For this purpose, entrepreneurs always have to think the innovative ways. They think about the introduction and production of
- New products
- Technology
Entrepreneurs foster innovation. All types of entrepreneurs play an important role in the economic growth of any country. They provide good job opportunities to the society.
The Basic Characteristics of entrepreneurship
Getting Well Profits in a Business
All types of entrepreneurs aim for making good profits. They run their firms with the sole aim of making profits. They are very particular about the reward. They feel it is a recognition for their
- Efforts,
- Hard work
Risk- bearing capability
They are ready to withstand calculated risks. And also they face the challenges that come up with implementing new ideas. The capacity to take a risk with a new idea is highly appreciable.
Inclination Towards Creativity and innovation
Some types of entrepreneurs have adaptability towards creation and innovation. They want to achieve substantial profits. For this purpose, they want to implement new and creative ideas in their business. And also they are very particular about cost reduction and sufficient production.
Types of Entrepreneur classification can be done on the basis of
- Ownership
- Business Type
- Technology
- Enterprise size
- Clarence Danhof study
Entrepreneurs classification based on Ownership
Private Entrepreneur
Private entrepreneur starts his or her own enterprise. These types of entrepreneurs bear the risk associated with it on his own.
State Entrepreneur
State entrepreneur is a government entrepreneur. It is an business or industrial undertaking. Here the government holds the full authority. It is the sole owner. The government will manage all the profits and losses involved with it.
Joint Entrepreneurs
Joint entrepreneur is an joint entrepreneurship. Private entrepreneur and the government jointly form this joint entrepreneurship. They are called as joint entrepreneurs. The joint entrepreneurs share the risk and profits. The sharing process will be done on the basis of their agreement and understanding. The percentages of their sharing will depend on their agreement.
Entrepreneurs classification based on Business Type
Trading Entrepreneur
Trading entrepreneur undertakes business-related activities. They source finished products in bulk from the manufacturers with reasonable discounts. Then they market it directly. And also they approach the help of retailers or vendors with profits. These type of entrepreneur operate as middleman. And they work between manufacturers and customers. Some of the examples of this category
- The wholesalers
- Retailers
- Dealers, etc…
Manufacturing Entrepreneur
Manufacturing entrepreneur manufacture products directly. They do proper research work. They focus on market needs. And their production will meet such needs using various resources or technologies. They take proper care in manufacturing perfect finished products for customer satisfaction.
Agricultural Entrepreneur
Agricultural entrepreneur prefers to do agricultural work. They concentrate on various kinds of agricultural activities. They involve themselves in
- Irrigation,
- Agricultural produce
- Farming
- Mechanization
- Technology, etc.
Entrepreneurs classification based on Technology
Technical Entrepreneur
The Technical entrepreneur starts industries based on science and technology. They find out recent technology-based innovations and inventions. And they apply technology-based innovations and inventions. Their focus is on new methods of production in the fields of technology and science.
Non-Technical Entrepreneur
The Non-technical entrepreneur never bothers to have a technology based industry. And they prefer old traditional methods and never bother for recent ones. They try to find innovations in traditional methods. Alternative and exemplary marketing methods followed. And they prefer non-technical delivery strategies. They engage themselves directly with customers.
They depend on directly with customers. It is essential for their survival. And also for the growth of their business in a competitive market. They retain best relationships to meet their customer needs.
Entrepreneurs Classification Based on the Enterprise Size
Small Scale Entrepreneur
Small scale entrepreneur category contains Owners of small, local businesses. The customer loyalty, and stability are their best characteristics. The examples of small scale entreprenuer are as below
- Retail shops
- Local hairdressers
- Grocery shops
- Milk booths
- Small boutiques
- Restaurants
These types of entrepreneur focus on community. Their major strengths are on personalized service, adaptability, and local market knowledge. Their main competitors are larger businesses with limited resources.
Medium Scale Entrepreneur
Medium scale entrepreneur invests a minimum of 1 crore to a maximum of 5 crores in starting an enterprise. It includes both plant and machinery.Â
Large Scale Entrepreneur
Large scale entrepreneur invests more than 5 crores in starting an enterprise. They are capable enough to spend good amount of money on plant and machinery.
Entrepreneurs Classification Based on Clarence Danhof Study
- Innovative Entrepreneurs
- Imitative Entrepreneurs
- Fabian Entrepreneurs
- Drone entrepreneurs
Innovative Entrepreneurs
Innovative entrepreneur is an entrepreneur with new ideas or innovations. They come forward to create new products. And they find new production methods. They create new markets. And they restructure the total business.
These types of entrepreneurs are always willing and try to innovate methods. And they allocate proper time schedule and budget in research and development. Their ability to think
- In a creative manner,
- take calculated risks
and disrupt traditional business models are great.
Imitative Entrepreneurs
Imitative entrepreneur follows and adopts the existing successful enterprise system of innovative entrepreneurs. They are often called ‘copy cats’ and do nothing new of their own. They adopt strategy from other enterprises. And they replicate all core fundamentals of the original business model. And they retain all efficiencies. They appreciate the use of improved technology addressed by other enterprises.
They identify and duplicate successful business models in different markets or contexts.
Fabian Entrepreneurs
Fabian entrepreneurs are not very much interested to seek for the changes. They won’t implement changes in their enterprise techniques. They are always very careful in applying any approach. And also very cautious in implementing any change. They will not make quick decisions. These types of entrepreneurs always check for 100% assurance of success. Mainly before imitating the change in their strategy.
Fabian entrepreneurs always proceed gradually in their business. They make calculated decisions and mitigate risks as they progress in their business. They give more importance for stability and long-term sustainability over rapid growth. They are always very cautious about the market conditions. They mainly focus on customer demands, and resource availability before making strategic moves.
Drone Entrepreneurs
Drone entrepreneur will not opt for any changes in their enterprise techniques. They used to their traditional strategies. They follow the methods for
- Development
- Production
They feel proud about following traditional old ways of doing business.
Eventhough they sometimes suffer losses they will not opt for any changes. And they do not adopt changes in their traditional old methods. They resist to embrace new opportunities and always adhere to conventional methods.
Conclusion
- Entrepreneurs evolve from one type to another throughout their entrepreneurial journey.
- Entrepreneurs can evolve in their progress. And they gain experience, encounter new opportunities, and refine their focus.
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