Entrepreneur views broadly classified into three groups,namely

1.Risk-bearer

2. Organizer

3. Innovator

Entrepreneur as Risk-Bearer

Knight(1965) also described entrepreneur to be a specialized group of persons who bear uncertainty.
Uncertainty is defined as a risk which cannot be insured against and is incalculable.

Entrepreneur as Organizer or Coordinator

Jean-Baptiste Say(1827)the French political economist. His definition associates entrepreneur with
the functions of coordination, organization and supervision.

According to say, an entrepreneur is one who combines the land of one, the labour of another and
the capital of yet another, and thus produces a product.

By selling the produce in the market he pays interest on capital,rend on land,wagesto labourers, and
what remains is his/her profit.

There are 3 more implicit factors are deemed to be essential,these are:

1.Morale qualities for work- judgment, perseverance and knowledge about the business world,

2.Command over sufficient capital and

3. Uncertainty of profits.

Entrepreneur as Innovator

The innovation i.e. introduction of new combination of factors of production, according to him, may
occur in any one of the following five forms:

i.Introduction of a new product;

ii. Introduction of a new method of production;

iii. Opening of a new market;

iv. Discovery of a new source of supply of raw materials; and

v. Carrying out of the new form of organization of any industry.

Schumpeter also made a distinction between an inventor and an innovator. An inventor is one who
discovers new metods and new materials. And an innovator utilizes inventions and discoveries in
order to make new combinations.

Schumpeter argued that the entrepreneur may or may not be the inventor, and similarly, the
entrepreneur may or may not be the supplier of capital.

In a sense, innovation is an invention that is replicated and commercially used at large-scale to solve
a particular problem.
Characteristics of an entrepreneur

1.Hardwork

2.Desire for High Achievemen

3.Highly optimistic

4.Independence

5.Foresight

6.Good organizer

7.Innovative

8.Perseverance

9.Team Spirit

Hardwork

Willingness to work hard distinguishes a successful entrepreneur from unsuccessful one.

While delivering the convocation speech at the Entrepreneurship the well-known

entrepreneur SHRI HARI SHANKAR SIGNHANIA exhorted the budding entrepreneurs that “I have
always followed the dictum that success come only with 10% inspiration and 90%perspiration.
There is no substitute for hardwork. One must have a focus to achieve his/her vision. If one waits
for ideal situation, the time will never come.”

Desire for High Achievement:

The entrepreneurs have a strong desire to achieve high goals in business. This high achievement
motive strengthens them to surmount the obstacles, suppress anxieties, repair misfortunes, and
devise expedients and set up and run a successful business.

Ex: sunil mittal

Highly optimistic

The successful entrepreneurs have a positive approach toward things.

They do not get disturbed by the present problems faced by them. They become optimistic for
future that the situations will become favourable to business in future.

Eg.In 1914,Thomas A.Adison, at the age of 67 lost his factory to fire.

Independence: one of the common qualities of the successful entrepreneurs has been that they do
not like to be guided by others and to follow their rules. They like to be independent in the matters
of their business.

Foresight:

The entrepreneurs have a good foresight to know about future business environment. In other
words, they well visualize the likely changes to take place in market, consumer attitude and taste,
technological developments,etc. and take necessary and timely actions accordingly.

Good organizer:
Various resources required for production are owned by different owners. Then, It is the ability of
the entrepreneur who brings together all required resources for setting up an enterprise and then
produces goods.

Innovative:

Production is meant to meet the customer’s requirements. The entrepreneurs initiate research and
innovative activities to produce goods to satify the customers’ changing requirements and demands
for the products. The research centres/institutes established by Tata,birla,Kirloskar,etc., are
examples of the innovative activities taken by the the entrepreneurs in our country.

Perseverance:

One of the qualities of successful entrepreneurs is that they possess and exhibit tremendous in their
pursuits.

Example: Miss Fenny hust, a writer.

Team Spirit: The word TEAM refers to T for Together,E for Everyone,A for Achieves and M for More.

Types of Entrepreneurs

a.Based on the Type of Business

1.Trading Entrepreneurs:

As the name itself suggests, the trading entrepreneur undertake the trading activities.

They procure the finished products from the manufacturers and sell these to the customers directly
or through a retailer.

These serve as the middlemen as wholesalers, dealers, and retailers between the manufacturers and
customers.

2. Manufacturing Entrepreneur:

The manufacturing entrepreneurs manufacture products.

They identify the needs of the customers and then explore the resources and technology to be used
to manufacture the products to satisfy the customers’ needs.

3.Agricultural entrepreneur:

The entrepreneurs who undertake agricultural pursuits are called agricultural entrepreneurs.

They cover a wide spectrum of agricultural activities like cultivation,marketing of agricultural

produce, irrigation, mechanization, and technology.

b. Based on the use of Technology

1.Technical entrepreneur: The entrepreneurs who establish and run science and technology based
industries are called ‘technical entrepreneurs’.

Expectedly, they use new and innovative methods of production in their enterprises.

2. Non-Technical Entrepreneur: Based on the use of technology, the entrepreneurs who are not
technical entrepreneurs are non-technical entrepreneurs.
They are concerned with the used of alternative and imitative methods of marketing and distribution
strategies to make their business survive and thrive in the competitive market.

c. Based on Ownership

1.Private entrepreneur: A private entrepreneur is one who as an individual sets up a business

enterprise. He/she it’s the sole owner of the enterprise and bears the entire risk involved in it.

2.State Entrepreneur: When the trading or industrial venture is undertaken by the state or the
government ,it is called ‘state entrepreneur’.

3.Joint Entrepreneur: when a private entrepreneur and the Government jointly run a business
enterprise, it is called ‘joint entrepreneurs’.

d.Based on Gender

1.Men entrepreneurs: when business enterprises are owned ,managed and controlled by men, these
are called ‘men entrepreneurs’.

2.Women Entrepreneurs: Women entrepreneurs are defined as the enterprises owned and
controlled by a woman or women having a minimum financial interest of 51 per cent of the capital
and giving at least 51 per cent of employment generated in the enterprises to women.

e.Based on the size of Enterprise

1.small –scale entrepreneur: An entrepreneur who has made investment in plant and machinery up
to 1crore is called ‘small scale entrepreneur’.

2.Medium-scale entrepreneur: The Entrepreneur who has made investment in plant and machinery
above 1crore but below 5crore is called medium scale entrepreneur.

3.Large-scale entrepreneur: the entrepreneur who has made investment in plant and machinery
more than 5crore is called large-scale entrepreneur.

Based on Clarence Danhof Classification

1.Innovating Entrepreneurs

Innovating entrepreneurs are one who introduce new goods,inaugurate new method of
production,discover new market and reorganise the enterprise.

2.Imitative Entrepreneurs

These are characterised by readiness to adopt successful innovations inaugurated by innovating

entrepreneurs.

They do not innovate the changes themselves, they only imitate techniques and technology
innovated by others.

3.Fabian Entrepreneurs

Fabian entrepreneurs are characterized by very great caution and scepticism in experimenting any
change in their enterprises.
They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the
relative position in the enterprise.

4.Drone Entrepreneurs.

These are characterised by a refusal to adopt opportunities to make changes in production formulae
even at the cost of severely reduced returns relative to other like producers.

Such entrepreneurs may even suffer from losses but they are not ready to make changes in their
existing production methods.

Other types

1.solo operators: these are the entrepreneurs who essentially work alone and if needed at all,
employ a few employees.

2.Active partners: Active partners are those entrepreneurs who start/carry on an enterprise as a
joint venture.

It is important that all of them actively participate in the operations of the business.

3.Inventors: such entrepreneurs with their competence and inventiveness invent new products.
Their basic interest lies in research and innovative activities.

4.challengers; These are the entrepreneurs who plunge into industry because of the challeges it
presents.

5.Buyers: These are those entrepreneurs who do not like to bear much risk.

6.Life-Timers: These entrepreneurs take business as an integral part of their life.