Answer – 1(h)

The Entrepreneur occupies the central place in the growth process because he
initiates development in a society and carries it forward. As a change agent, the
entrepreneur is the first and foremost a catalyst for change. Clarence Danhof
had classified the entrepreneurs into four categories:
1. Innovative Entrepreneurs
This category of entrepreneurs is characterized by innovativeness.
Innovative entrepreneurs refer to those who introduce new combinations
of factors of production. This category of entrepreneurs visualizes the
opportunity and introduces novel ideas, combinations into the production
process.

2. Imitative Entrepreneurs
This set of entrepreneurs adopts and imitate the innovations and business
policies introduced by the innovative entrepreneurs. They imitate the
technology and methods that are found successful. Usually in developing
economies and LDCs, this class of entrepreneurs is very useful as because
the entrepreneurs of these countries find it difficult to bear the high cost
involved in the process of innovation. They significantly contribute in the
growth of enterprise in developing countries.

3. Fabian Entrepreneurs
These categories of entrepreneurs usually imitate other innovations only
when they are certain that failure to do so would be detrimental for their
business. They are very much doubtful and skeptic in their approach
towards adopting new technology or trade. This set of entrepreneurs is
not dynamic and adaptive. They are often cautious about their moves.

4. Drone Entrepreneurs
Drone entrepreneurs refer to the type of entrepreneurs who are very
traditional, orthodox and conservative in outlook. They are very keen in
retaining their traditional business and traditional machinery or systems
of the business. They are contented with their existing technology of
production despite of changes in the business environment and society.
Drone entrepreneurs are usually reluctant to adopt the changes.