An entrepreneur is an enterprising person who combines various factor of production, processes and converts the raw material into finished product and creates utility in the product and sell the product in the market of earning profits. Entrepreneur is the most important input in economic development of a region or country as a whole. Every economy is witnessed by the presence of a large number of entrepreneur. Entrepreneur can be classified on the various basis. Some of most important types of entrepreneurs are being explained here.
Classification Based on the Types of Business
(1) Industrial Entrepreneur – Industrial entrepreneurs are essentially considered as manufactures. He identifies the needs and wants of the customer and manufactures product according to their need and expectation. He is generally a product-oriented man. He is found in any industrial unit such as electronic industry, textile units, machine tool and the like.
(2) Trading Entrepreneur – Trading entrepreneur is one who undertakes trading activities (buying and selling of goods and services). He is not engaged in manufacturing. These entrepreneurs identify market opportunities and stimulate demand for their product. Trading may be national or international.
(3) Corporate Entrepreneur – A Corporate undertaking is a form of business enterprise which is registered under some state or act which gives it a separate legal entity. A corporate entrepreneur is one who promotes corporation. He is a person who demonstrates his innovative skill in organising and managing a corporate undertaking.
(4) Agricultural Entrepreneur – Agricultural entrepreneurs are those who undertake business related agricultural activities. For example, farm equipments, fertilizers and other agricultural inputs. They provide supportive products that can increase the agricultural production through biotechnology and improvement in agricultural yield. In a way, they are engaged in allied agricultural activities.
CLASSIFICATION BASED ON THE USE OF TECHNOLOGY
The use of new technology in various sector of the economy has become an important requirement for its growth. Technology is becoming an important part of every business irrespective of its size and nature. The entrepreneur on the basis of technology usage can be stated as under:
(1) Technical Entrepreneur – A technical entrepreneur is generally compared to ‘Craftsman’. He mainly concentrates more on production area than marketing. He demonstrates his innovative capabilities in the matter of production of goods or services. Their main assets is technical expertise. Due to his expertise, he develops new and improved quality of goods and attempt to succeed in their business.
(2) Non-Technical Entrepreneur – Non-technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They do not target or concentrate to change the production technique but to increase the demand for the he product by alternative course of actions.
(3) Professional Entrepreneur – Professional entrepreneur is a person who is interested in establishing a business but does not have interest in managing or operating it once it is established. He sells out his running business and then starts a new venture with the sale proceeds of the old one. They are considered to be dynamic and keep on conceiving new ideas to develop alternate projects.
Classification Based on the Motivation
(1) Pure Entrepreneur – A pure entrepreneur is one who undertakes any activity to satisfy his ego. He is motivated to achieve or prove his excellence. He undertakes an entrepreneurial activity for his personal satisfaction in work or status. He is generally a status conscious person.
(2) Induced Entrepreneur – He is the entrepreneur who prepares his sound project and wants to start business but needs support in some forms or other. Most of the induced entrepreneurs enter into business due to financial, technical and several other facilities provided to them by the state agencies to promote entrepreneurship. He is the person who is induced to take the entrepreneurial task due to the policy measures of the government that provides assistance, incentives, concessions and necessary overhead facilities to start a venture.
(3) Motivated Entrepreneurs – This is a special class of entrepreneurs. They are motivated by the desire for self- fulfillment. They come into existence because of the possibility of making and marketing some new product for the use of consumers. Their level of motivation becomes more high when their idea provides them a satisfactory amount of profit.
(4) Spontaneous Entrepreneur – These are the entrepreneur which has the basic qualities of entrepreneur in him. They are such types of persons who have qualities like boldness, confidence, determination, initiatives etc. They commence their business due to their confidence and talent. They need not to be induced by any other due to their strong conviction.
Classification on the Basis of Ownership
(1) Founders Entrepreneur – The word founder itself explains the meaning of this category. They are those individuals who are founder of the business. They are those who conceptualise a business plan and put all their efforts to make the plan successful.
(2) Family owned business or second generation operator – They are those entrepreneurs who have inherited the business from their fathers or forefathers. Like Mukesh Ambani and Anil Ambani, sons of Dheerubhai Ambani of Reliance Group.
(3) Franchises – ‘Franchises’ has been derived from a French word which means free. It is a technique of doing business where in the parent owner (The Franchiser) licenses his trademark, tried, tested and proven method of doing business to a franchisee in exchange for a recurring payment. Here the franchisee has not conceptualised the business but has invested his money and time in the business. These days, this concept is gaining more and more popularity.
(4) Owner Manager – When a person buys a business from the founder and then invests his time and resources in it he is called the owner manager.
Classification on the Basis of Stage of Development
(1) First generation Entrepreneur – A first generation entrepreneur is one who starts an individual unit by means of an innovative skill. He is essentially an innovator combining different technologies to produce a marketable product or service.
(2) Modern Entrepreneur – A modern entrepreneur is one who undertakes business to satisfy the contemporary demand of the market. He is who undertakes those ventures which suit the current marketing needs.
(3) Classical Entrepreneur – A classical entrepreneur is called starve type entrepreneur. He aims to maximise the economic return at a level consistent with the survival of the firm, with or without the element of growth.
Classification of the Basis of Growth
(1) Growth Entrepreneur – Growth entrepreneur are those who necessarily take up a high growth industry. These entrepreneur choose such type of industry which has substantial growth prospects.
(2) Super Growth Entrepreneur – These are those entrepreneurs who have shown extraordinary growth in the performance of their venture. The growth or performance is measured on the basis of various parameters like liquidity, solvency, profitability.