TYPES OF ENTREPRENEURS

Based on Clarence Danhof Classification, there are 4 types of entrepreneurs

based on economic development, depending upon the level of willingness to
create innovative ideas:

1. Innovating Entrepreneurs:
Innovating entrepreneurs are one who introduces new goods, inaugurates new
method of production, discover a new market, and reorganize the enterprise. It is
important to note that such entrepreneurs can work only when a certain level of
development is already achieved, and people look forward to changing and
improving. They are business leaders and contributors to the economic
development of a country, as they are very much helpful to their country because
they bring about a transformation in lifestyle.

2. Imitative Entrepreneurs:
These are characterized by a readiness to adopt successful innovations
inaugurated by innovating entrepreneurs. Imitative entrepreneurs do not innovate
the changes themselves, they only imitate techniques and technology innovated
by others. These entrepreneurs face lesser risks and uncertainty than
innovative entrepreneurs. While innovative entrepreneurs are creative,
imitative entrepreneurs are adoptive. They imitate innovative entrepreneurs
because the environment in which they operate is such that it does not permit
them to have creative and innovative ideas on their own. Such types of
entrepreneurs are particularly suitable for underdeveloped/developing regions for
bringing a mushroom drive of imitation of new combinations of factors of
products already available in developed regions. Imitative entrepreneurs help to
transform the system of those countries with the limited resources available.
3. Fabian Entrepreneurs:

The dictionary meaning of the term ‘fabian’ is a person seeking victory by delay
rather than by a decisive battle’. This kind of entrepreneur is characterized by
very great caution and skepticism in experimenting with any change in their
enterprises. This type of entrepreneur is not interested in introducing new
changes or desiring to adopt new methods of production innovated by most
entrepreneurs. They are very much skeptical in their approach to adopting or
innovating new technology in their enterprise and they love to remain in the
existing business with the age-old techniques of production. 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. Usually, they are a second-generation
entrepreneur in a business family enterprise.

4. Drone Entrepreneurs:
These are characterized by a refusal to adopt opportunities to make changes in
production formulae even at the cost of severely reduced returns relative to other
producers. Drone entrepreneurs refuse to copy or use opportunities that come on
their way. In fact, these entrepreneurs are very conservative; they always feel
comfortable with their old-fashioned technology of production even though
the environment, as well as the society, have undergone considerable changes
and they are even ready to suffer the loss of their business. They are laggards
as they continue to operate in their traditional way and resist changes.
On the Basis of the Kind of Business –
1. Industrial Entrepreneurs :
These entrepreneurs are associated with the manufacturing process and industrial
activities. These entrepreneurs may be involved in any large-scale, medium scale
or small-scale industries. Industrial entrepreneurs mobilize resources of various
types and create an entity to manufacture products or services. They add utility
to products rolled out by them which is termed value addition.
2. Agricultural Entrepreneurs:
Agricultural entrepreneurs are the entrepreneurs involved in agricultural and
allied activities. They can also be engaged in horticulture, floriculture, sericulture,
apiculture, animal husbandry, dairy farming etc.
3. Trading Entrepreneurs:
These entrepreneurs are associated only with trading activities. They do not
engage themselves with the manufacturing work. They undertake wholesale or
retail trading activities. They restrict themselves to buying and selling finished
goods. They may be engaged in domestic and international trade. Their core
strength lies in distribution and marketing. They get their income by way of
commission and marketing.
4. Corporate Entrepreneurs:
These entrepreneurs promote and establish an entity under a corporate format.
The corporate entrepreneur is called a promoter. They are successful at initiating
and running corporate companies. In the corporate form of organization,
ownership and management are separated. Corporate entities are registered under
the Companies Act or under the Trust Act. Corporate entrepreneurs install a team
of experts to manage the entity on a day-to-day basis.
5. Business Entrepreneur:
A business entrepreneur is called a solo entrepreneur. He/she is the one who
conceives an idea for a new product/service and establishes a business enterprise
to translate his idea into reality. He/she may establish a small or large enterprise
to commercially exploit his/he idea. He/she takes up production, and operations
and pursues marketing activities.

Based on Utilization of Technology –

1. Technical Entrepreneurs:
These entrepreneurs are technically sound and trained. They use their technical
skills in establishing manufacturing units and improving the manufacturing units
with the latest level of technology. They highly influence the production
technique in vogue.
2. Non-Technical Entrepreneurs:
These entrepreneurs are remotely concerned with the technical aspects of
entrepreneurship. They focus on evolving alternative strategies of marketing and
distribution in order to promote their business.