Classification of Entrepreneurs

Classification of Entrepreneurs
• Craftsmen – attempt to make a living by
privately selling their trade or the product they
produce
– income oriented: just to secure steady income
– expansion oriented: want more than just steady income
• Opportunist Entrepreneurs – interested in
maximising their return from short-term deals
– growth-oriented: pursue opportunities to maximise the
potential of the ventures
– independence-oriented: main ambition was to work for
themselves – preferred stability to growth
 Classification of Entrepreneurs
• The Cantillon Entrepreneur (classic type) - brings
people, money and materials together to create an entirely
new organisation
• The Industry Maker - goes beyond merely creating a new
firm; their innovation is such important that a whole industry
is created on the back of it
• Administrative Entrepreneur (Intrapreneur) - a
manager who operates within an established firm but does so
in an entrepreneurial manner
• The Small Business Owner - an entrepreneur who takes
responsibility for owning and running their own venture.
 Landau’s Approach

True
High Gambler
Entrepreneur
Risk Bearing
Low Consolidator Dreamer
Low High

Innovativeness
 Serial Entrepreneurs
• Serial Entrepreneurs  Entrepreneurs or a group of
entrepreneurs who, having led one business success,
move on to start another
– Sequential Entrepreneurs: those who started the
business in sequence, only run one at a time.
• Example: James Dyson who started the ball-wheel-barrow business before
moving on to cyclone vacuum cleaner business
– Portfolio Entrepreneurs: those who run several
business simultaneously
• Example: Sir Richard Branson who diversified his Virgin group into a
number of different areas
 Based on Motivation
• Pure entrepreneur
– Motivated by psychological and economic rewards
• Induced entrepreneur
– Incentives, concessions, benefits offered by government for
entrepreneurs motivates him
• Motivated entrepreneur
– Motivated by desire for self-fulfillment
– Start business because of possibility of making and marketing some
new product for consumers
• Spontaneous entrepreneur
– Born entrepreneurs with inborn traits of confidence, vision, initiative
 Based on Ownership
• Founders or pure entrepreneurs
– Responsible for inception of the business
– Big risk takers
– Eg. Dhirubhai Ambani
• Second Generation operators of Family-owned
businesses
• Franchisees
– Restricted in freedom
• Owner-Managers
– Who have bought the business from the founders
 Type of Business
• Trading entrepreneur
– Undertakes trading activities; concerned with
marketing (Domestic and international level)
• Industrial entrepreneur
– Undertakes manufacturing activities only; new
product development etc (textile, electronics, etc)
• Agricultural entrepreneur
– Production and marketing of agricultural inputs
and outputs (Dairy, horticulture, forestry)
 Type of Business
• Business entrepreneur
– Convert ideas into reality; deal with both
manufacturing and trading aspect of business
(Small trading and manufacturing business)
• Corporate entrepreneur
– Interested in management part of organization;
exceptional organizing, coordinating skills to
manage a corporate undertaking (Birla, Tata
families)
 Use of Technology
• Technical Entrepreneur
– Technocrat who develops new and improved
quality of goods
– Concentrates more on production than marketing
• Non-technical Entrepreneur
– Concerned with developing alternative marketing
and distribution channels
 Innovation Adaptation
• Innovative Entrepreneurs
– Aggressive assemblage & analysis of information.
– Sees opportunity for introducing a new technique, new product or a new
market.
– Aggressive in experimentation and cleverly put attractive possibilities into
practice.
• Imitative Entrepreneurs
– Imitate technology & techniques innovated by others.
– Transform the system with the limited resources available.
– Face less risk and uncertainty.
– Organizer of factors of production than a creator.
– Important in underdeveloped nations.
– Can set in chain reaction and lead to cumulative progress.
 Innovation Adaptation
• Fabian Entrepreneurs
– Very cautious and skeptical while practicing any change.
– Neither the will to introduce new changes nor the desire to adopt new
methods.
– Shy and lazy
– Don’t take risks, follow predecessors.
– Determined by custom, religion, traditions and past practices.
– They imitate only in situations when it becomes absolutely necessary.
• Drone Entrepreneurs
– Are laggards and operate in a traditional way.
– Highly conservative
– Refuse to change and adopt new opportunities to make changes in
production methods.
 Stages in Development
• First generation entrepreneur
– Innovator, risk taker, among the firsts in family to enter
business
• Classical entrepreneur
– One who gives more importance to consistent returns
than to growth; concerned about customer and
marketing needs
• Modern entrepreneur
– Who considers feasibility of business, which can adapt
to change and dynamic market
 Based on Personality Traits
• The Personal Achiever
– Motivated by desire to excel
– Self driven, internal motivation
• Induced Entrepreneur
– Motivated by external factors like government subsidies, institutional support etc.
– Forced by external circumstances (economic, social displacement)
• Expert Idea Generator
– Creative people who want to bring idea into market
• The Real Manager
– Runs the business as an analyst, focus on fixing problems
– Brings about incremental changes, promote teamwork
• The Real Achiever
– Full of life, energy, optimism
– Look for achievement of not just own goals, but also people associated with them
– Eg. Richard Branson
 Growth
• Growth entrepreneur
– One who enters a sector with a high growth rate;
is a positive thinker
• Super growth entrepreneur
– One who enters a business and shows a quick,
steep and upward growth curve
 Others
• Area
– Rural / Urban entrepreneur
• Gender/Age
– Men and Women entrepreneur
• Scale
– Small and Large scale entrepreneur