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Types of Entrepreneurs

When we say an entrepreneur, most of us think that  it is a person involved in industrial business. But the word entrepreneur is not limited to industrial businesses, it also represents people involved in agricultural and commercial activities. Clarence Danhof has devided entrepreneurs in verious types on the basis of his study of the American agriculture.
The types of Entrepreneurs is classified by Danhof into following categories:
1. Innovating entrepreneurs:
 The entrepreneurs who bring new ideas for the success of their business are called innovative entrepreneurs. These entrepreneurs come out with new ideas, new technologies and working environment, which not only helps them to bring more business but also helps the country as they bring a transformation in the lifestyle.
2. Adoptive or Imitative Entrepreneurs:
 The entrepreneurs who copy the existing entrepreneurs and establish their own business are called adoptive or imitative entrepreneurs. These types of entrepreneurs are not at all innovativeThey copy everything from methods to technologies that are used in the business and apply them in their own businesses. They are helpful for under developed countries because with the use of existing technologies, they help in increasing the job opportunities and thus, they contribute to the economic growth of a country.
3. Fabian Entrepreneurs:
The entrepreneurs who are very doubtful in adopting or innovating new technologies in their enterprises are called fabian entrepreneurs.They can not easily adopt a changing environment and prefer to remain in the same environment. They adopt new technologies only when their is an emergency or when they realise that their system is failing.
4. Drone Entrepreneurs: The entrepreneurs who are conservative in attitude are called the Drone Entrepreneurs.They use old machineries and work in the old environment. They feel comfortable with the new ways of working or using the new technologies they are very lethargic in working and are setisfied with the old working method.
5. New types of Entrepreneur: Entrepreneurs are further divided into verious categories with its growing importance.Following are the some more types of entrepreneurs:

  • Solo operators: The entrepreneurs who like to set up a business on their own and do not prefer the involvement of anyone else are called the solo operation. such entrepreneurs invest their own capital, set their own business, rules take decision on their own. Of course they have employs for performing the jobs.
  • Active Partners: The Entrepreneurs who do not set up a business independently, but involve more people with them are called the active partners. There are usually more than one person involved in the Enterprise where all the members contribute together in the business activities such as capital investment, decision taking and performing jobs. The profit gained by the enterprise is also generally distributed among the partners as decided by them.
  • Inventors:  The entrepreneurs who are involved in research and development (R &D) activities are called inventors. Such entrepreneurs are very creative and they are satisfied with their job only when are able to invent new things such as product methods or technology.
6. Challengers: The entrepreneurs who take up business as a challenge are called the challengers. Such entrepreneurs are always looking forward for new business challenges. They take up these challenges in a positive way and they always look forward for introducing new ideas and technologies in the business so as to gain profit. For them business with out challenges is of no fun. They are also always ready for taking business risks and face any kind of problems positively.
7. Buyers: The entrepreneurs who acquire a running business are called buyers. They do not start their enterprise from scratch but they believe in turning a non-profit business into a profitable one. By using their skills, experience and hard work they achieve this goal.
8. Life Timer: The entrepreneurs who take up business as an important part of their life are called the life timers. They see their own failure and success in life as the failure and success of their enterprise. They identify their own self with the enterprise and dedicate solely to it's success.

Other types of entrepreneurs:
        Based on their age, gender, types of business and the technologies they use, entrepreneurs are also classified in the following way:
(1) Industrial Entrepreneurs: The entrepreneurs who are involved in the large-scale,  medium-scale and small -scale enterprises and who manufacture  and sell products are called the industrial entrepreneurs. 

(2) Service Entrepreneurs : The entrepreneurs who are involved in various service providing activities are called the service entrepreneurs. The entrepreneurs have engineering workshops, maintenance and repair service centers and beauty parlors etc.  These entrepreneurs require a lot of specific skill and training for having proficiency in their work. 

(3) Business entrepreneurs : The entrepreneurs who are not involved in the manufacturing activities are called the business entrepreneurs. They only undertake trading as their enterprise or business. Such entrepreneurs first research for the possible market opportunities and then convert those into profitable business concerns so as to instigate demand for their in the market. Enterprise like stationery store, medicine shop, cloth store etc. Are examples of such type of enterprises. 

(4) Agricultural Entrepreneurs:The entrepreneurs who are linked with the agricultural activities such as planting crops, horticulture, poultry and fish firming are called the agricultural entrepreneurs. Such entrepreneurs use modern techniques and machineries instead of using traditional equipments for production. This helps them in increasing the profit rate for the enterprise as they can produce more with new technologies. 
(5) Corporate Entrepreneurs: The name, corporate is given to any enterprise when it is registered under a statute and possesses a legal entity.  Entrepreneurs working in such business organisations are called corporate entrepreneurs. 
(6) First generation Entrepreneurs: The entrepreneurs who do not have any family business background are called the first generation entrepreneurs. Such entrepreneurs establish their own enterprise with their skill, exposure and experience. 
(7) Classical Entrepreneurs: The entrepreneurs who always adopt the traditional ways of working are called the classical entrepreneurs. The economic gain and desire to maximize the profit motivates the classical environment. 
(8) Pure Entrepreneurs: The entrepreneurs who believe in their own performance while taking the business activities are called pure entrepreneurs. Such entrepreneurs are always trying to prove their excellence in various activities and are motivated by profit and apply business skill and their hard work to gain more profit. 
(9) Induced Entrepreneurs: The entrepreneurs who are encouraged by the promotional agencies to set up an enterprise with the help of government are called the induced entrepreneur. The government comes out with various schemes for those entrepreneurs who are willing to start their own enterprise. The government also provide subsidies and incentives of various forms such as financial assistance, lands at cheaper location and skill training to budding entrepreneurs. 
(10) Spontaneous Entrepreneurs : The entrepreneurs who start their own enterprise spontaneously are called the spontaneous entrepreneurs. Such entrepreneurs are confident and have positive attitude towards business. They have the ability to take risks and act accordingly. 
(11) Women Entrepreneurs : When a women or a group of women is involve in initiating, organising and operating an enterprise then they are defined as women entrepreneurs.  According to the government of India,  "A women entrepreneur is defined as an enterprise owned and control by a women and having minimum financial interests of 51 percent of the capital and giving at least 51 percent of the employment generated in the enterprise to women."
(12) Rural Entrepreneurs : The entrepreneurs who establish industries that are rural based are called the Rural entrepreneurs. Examples of such industries are the khadi or village industries sectors.  The khadi and Village Industry Commission (KVIC)  Act says that rural industries are those industries which are located in the area where population does not exceed 10,000 and the workers wages does not exceed 1000 rupees.  The Government of  India has modified this defination of  rural entrepreneurs and has stated it as follows-  " any industry located as village industries in rural area,  village or town with a population of  20,000 and below and an investment of Rs 3 crores in plant and machineries are classified as village industries. "
(13) Modern Entrepreneurs : The entrepreneurs who produce goods and services with the changing needs of time and adapt to changes quickly are called the modern entrepreneurs.  Such entrepreneurs are always willing to change and adapt with the changing environment. 
(14) Non -technical Entrepreneurs : The entrepreneurs who are concerned with the non-technical part of the products are called the non-technical entrepreneurs. They do not deal with the technical part of any product, that is, they do not deal in production process but helps in the product marketing and distribution. They plan strategies in such a way that the demand of the product increases. 
(15) Technical Entrepreneurs : The entrepreneurs who are technically educated and experienced are called the technical entrepreneurs.  Such entrepreneurs entrepreneurs are mainly involved in the production business. They are technically trained and they use their innovation in developing new technologies. This helps the country in the entrepreneurial development. 
(16) Individual Entrepreneurs : The entrepreneurs who are usually found in small scale organisations are called the individual entrepreneurs. Such entrepreneurs invest their own capital and use their skills and innovations to establish an enterprise. They have the advantage of quick decisions, enjoy flexible working conditions and receive favours in the form of subsidies from the government and promotional agencies.  
(17) Institutional Entrepreneurs :  The entrepreneurs who form a group of individuals to take complex decisions in a large enterprise are called the institutional entrepreneurs. Such types of entrepreneurs function in large organisations where it is dificult for a single individual to take decisions. These individuals are responsible for taking important decisions mutually, regarding the finance, investment of capital and marketing of products.
(18) Entrepreneurs by Inheritance: The entrepreneurs who do not start a new business but become an entrepreneur by inherriting their family business are called the entrepreneur by inheritance. Such entrepreneurs hold their family business through succession. For example, the business power is passed from one generation to another in case of Birla and Ambani group of industries.
(19) Forced Entrepreneurs: The entrepreneurs who are not willing to become entrepreneur but still they become entrepreneur forcefully due to lack of income for survival are called the forced entrepreneurs. Certain unemployed people or those with a low educational back ground enter into this field of entrepreneurship.
(20) Professional Entrepreneurs: The entrepreneurs who have interest in establishing new enterprises but do not stay in the business for long are called the professional entrepreneurs. After establishing a new enterprise, these entrepreneurs sell the established enterprise and start with a new one. These types of entrepreneurs are very dynamic as they are innovative in ideas and thus keep on establishing new business to show their innovations.


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