TYPES OF
ENTREPRENEURS
TYPES OF ENTREPRENEURS
• ACCORDING TO THE TYPE OF BUSINESS
• ON THE BASIS OF STAGES OF DEVELOPMENT
• ON THE BASIS OF MOTIVATION
• ON THE BASIS OF TECHNOLOGY
• ON THE BASIS OF CAPITAL OWNERSHIP
• ACCORDING TO CLARENCE DANHOF
• ACCORDING TO ARTHUR H. COLE
ACCORDING TO THE TYPE OF BUSINESS
i)Business entrepreneurs:-who start business units after
developing ideas for new products/services.
ii)Trading entrepreneurs :-who undertake buying &
selling of goods, but not engage in manufacturing.
iii)Corporate entrepreneurs:-who establish and manage
corporate form of organization which have separate
legal existence.
iv)Agricultural entrepreneurs:- who undertake activities
like raising and marketing of crops, fertilizers and other
allied activities.
ON THE BASIS OF STAGES OF DEVELOPMENT
i)First generation entrepreneurs:-who do not
possess any entrepreneurial background. They
start industry by their own innovative skills.
ii)Second generation entrepreneurs:-who inherit
the family business and pass to next generation.
iii)Classical entrepreneurs:-who aims to
maximize his economic returns at a level
consistent with the survival of the unit with or
without an element of growth.
ON THE BASIS OF MOTIVATION
i)Pure entrepreneurs:-who are basically
motivated to become entrepreneurs for
their personal satisfaction, ego etc..
ii)Induced entrepreneurs:- who are
induced to take up entrepreneurial role by
the assistance and policy of government
including incentives, subsidies etc.
ON THE BASIS OF TECHNOLOGY
i)Technical entrepreneurs:- who are task
oriented and ‘craftsman type’. They prefer
doing to thinking.
ii)Non-technical entrepreneurs:- who are not
concerned with technical side, but rather with
marketing and promotion.
iii)Professional entrepreneurs:- who start a
business unit, but later sell the running
business and start a new unit later.
ON THE BASIS OF CAPITAL OWNERSHIP
i)Private entrepreneurs:- individual or
group set up enterprise, arrange finance,
share risk etc..
ii)State entrepreneurs:- means the trading
or industrial venture undertaken by the
state or the government itself.
iii)Joint entrepreneurs:- the combination of
private and government entrepreneurs.
According to Clarence Danhof
Clarence Danhof classifies entrepreneurs
into four types.
• 1. Aggressive/ Innovative.
• 2. Imitative/ Adoptive.
• 3. Fabian.
• 4. Drone
1. Aggressive/ Innovative
Innovative entrepreneur is one who assembles and
synthesis information and introduces new
combinations of factors of production.
They are characterized by the smell of innovativeness.
These entrepreneurs sense the opportunities for
introduction new ideas, new technology, new markets
and creating new organizations.
Innovative entrepreneurs are very much helpful for
their country because they bring about a
transformation in life style.
2. Imitative/ Adoptive
These categories are also known as adoptive entrepreneur.
He simply adopts successful innovation introduced by other
innovators.
These entrepreneurs imitate the existing entrepreneurs and setup
their enterprise in the same manner. Instead of innovating, they just
imitate the technology and methods innovated by others.
These entrepreneurs are very helpful in less developed countries as
they contribute significantly in the growth of enterprise and
entrepreneurial culture in these countries.
Further by adopting the technology, which is already tested, they
generate ample employment avenues for the youth and therefore
they are treated as agent of economic development.
3. Fabian
The Fabian entrepreneur is timid and cautious.
He imitates other innovations only if he is certain that failure to
do so may damage his business.
They are very much skeptical in their approach in adopting or
innovating new technology in their enterprise. They are not
adaptable to the changing environment. They love to remain in
the existing business with the age-old techniques of production.
They only adopt the new technology when they realize that
failure to adopt will lead to loss or collapse of the enterprise.
4. Drone
These entrepreneurs are conservative or orthodox in outlook.
They never like to get rid of their traditional business and
traditional machinery or systems of the business.
They always feel comfortable with their old fashioned technology
of production even though the environment as well as the society
have undergone considerable changes.
Thus, drone entrepreneurs refuse to adopt the changes. They are
laggards as they continue to operate in their traditional way and
resist changes.
His entrepreneurial activity may be restricted to just one or two
innovations. They refuse to adopt changes in production even at
the risk of reduced returns.
ACCORDING TO ARTHUR H. COLE.
1. Empirical: He is an entrepreneur hardly introduces
anything revolutionary and follows the principle of
rule of thumb.
2. Rational: The rational entrepreneur is well
informed about the general economic conditions and
introduces changes which look more revolutionary.
3. Cognitive: Cognitive entrepreneur is well informed,
draws upon the advice and services of experts and
introduces changes that reflect complete break from
the existing scheme of enterprise.
CONCLUSION
It is often said that “economy is the effect
for which entrepreneurship is the cause".
The development of economy is usually
associated with its industrial development.
An entrepreneur is a person who organises
the factors of productions-land, labour and
capital, and establish a business venture
and carries out the operations in the
business in a profitable manner.
