Entrepreneurship – Part 2

Dr. Shilpa Sindhu

CLASSIFICATION
OF
ENTREPRENEURS
Types of Entrepreneurs
Innovative Entrepreneurs
 They introduce new goods or services or new
methods of production or discover new
markets or reorganise the enterprise.
 They are characterised by an aggressive
assemblage of information for trying out a
novel combination of factors
 They look forward to improve upon past.
 Ex: Steve Jobs-ipods, Michael Dell-Dell
computers
Imitative or Adoptive Entrepreneurs
 They don’t innovate the changes themselves, but
imitate techniques and technology innovated by
others.
 They are characterised by their readiness to adopt
successful innovation by successful entrepreneurs.
 They are most suitable for
underdeveloped/developing economies as adoption
serves costs of trial and error.
 Ex: Walton BD. has introduced its motorbikes,

refrigerators, televisions and other

electronic appliances in Bangladesh not
being the original inventor of those products.
 Fabian Entrepreneurs
 Such Entrepreneurs display great caution and
skepticism in experimenting with any change in
their enterprise.
 They change themselves only when there is an

imminent threat to the very existence of their

enterprise.
 They do not venture to take risks.

 They are rigid and fundamental in their approach.

Usually, they are second generation entrepreneurs

in a family business enterprise. They follow the
footsteps of their successors.
Fabian Entrepreneur
 Kodak, a company that happened to be the
market leaders in producing analog cameras
but they did not realise the change and the
introduction of the Digicam.
 For what they lost their leadership, having
lost the leadership they have diversified the
business in producing the Digicams instead
of producing Analog cameras.
Drone Entrepreneurs
 Such Entrepreneurs are characterized by a die-hard
conservatism and may even be prepared to suffer the
loss of business rather than changing themselves,
existing production methods.
 They refuse to copy or use opportunities that come
on their way.
 They resist changes. They may be termed as
laggards.
 Ex: Citycell Telecom Bangladesh, in spite of having
knowledge about there market fall they have not yet
changed there business policy.
 According To Motivation
• Pure entrepreneur: Motivated by psychological and
economic rewards. Undertakes an activity for his
personal satisfaction in work, ego or status.
• Induced Entrepreneur: Induced due to policy
measures of the Government.
• Motivated Entrepreneur: they come into being
because of the possibility of making and marketing
some new products for the use of consumers.
• Spontaneous Entrepreneur: have a strong
conviction and confidence in their ability. Start their
business out of their natural talents.
 According To Stages of Development
• First Generation Entrepreneur: An innovator,
starts an industrial unit by means of an
innovative skill.
• Modern Entrepreneur: undertakes those
ventures which go well along with the changing
demand in the market.
• Classical Entrepreneur: stereotype
entrepreneur, aims to maximize his economic
returns at a level consistent with the survival of
the firm with or without an element of growth.
 According To Type Of Business
• Business entrepreneur: Convert ideas into reality; deal
with both manufacturing and trading aspect of business
(Small trading and manufacturing 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)
• Corporate entrepreneur: Interested in management part
of organisation; exceptional organising, coordinating skills
to manage a corporate undertaking (Ambani, Tata families)
• Agricultural entrepreneur: Production and marketing of
agricultural inputs and outputs (Dairy, horticulture, forestry)
According To Use Of Technology
• Technical entrepreneur: Production oriented,
possesses innovative skills in manufacturing,
quality control etc.

• Non technical entrepreneur: Develops

marketing, distribution facilities and strategies

• Professional entrepreneur: Uses the proceeds

from sale of one business to start another one.
Brimming with ideas to start new ventures
Challenges for Entrepreneur (1)
 Lack of adequate credit.
 Unreliable supply of raw materials, inputs,
power, finance, labor, etc.
 High cost of raw materials and other inputs.
 Assembling a Team. (To Recruit Skilled
employees)
 Unfavorable market fluctuations.
 Complex rules, regulations and procedures
framed by the some Government
Challenges for Entrepreneur (2)

 Global competition
 Changes around the globe
 Unforeseen Challenges and Expenses
 Keeping Up With Industrial Changes and
Trends
 Balance between projects and personnel
 Delayed payments
 Time Management
Entrepreneurship & Economic
Development
 Capital formation
 Improvement in per capita income
 Generation of employment
 Balanced regional development
 Improvement in living standards
 Economic independence
 Backward and forward linkages
Entrepreneurial Skills
A skill is the ability to do something specific or to translate knowledge
into action.

Research Skills
Entrepreneurs need to identify what they need to know and use
research techniques to obtain it.

Gathering Information
Reliable and relevant sources of information may include

• books • consultants
• periodicals • professionals
• indexes and databases • schools
• Internet

15
Contd…
 Using Information
After information is acquired, it needs to be sorted into relevant data
that answers the entrepreneur’s initial questions. These questions may
lead the entrepreneur to look at new ventures.

Management Skills
Management skills for entrepreneurs involve planning, organizing,
directing, and controlling. These are then applied towards their
personal, financial, and material goals.

Planning
Entrepreneurs develop financial, production, and marketing plans that
comprise the overall business plan.

16
Contd…
Organizing
Organizing the venture is vital. The key to this is time-management.

 Directing
Entrepreneurs learn how to motivate their staff by encouraging
initiative and self-direction. This inspires a sense of shared
responsibilities to grow the business.

Controlling
Entrepreneurs need to develop budgets and keep accurate
bookkeeping and accounting records.

17
Contd…
Relationship Skills
Running a business means building good relationships with staff, suppliers,
and customers.

Staff Relationships
Employees need to feel that they are treated fairly, are rewarded for their
efforts, and have their needs met.

Supplier Relationships
Communication is the most important relationship skill required to deal with
suppliers. They act as sources of information for the new business.
Suppliers also require feedback to know how to improve their service.

Customer Relationships
In an entrepreneurial business, the customer is the “boss” and the key to
the business’ success. Therefore, the entrepreneur and his or her staff
must develop a positive relationship with the customer.

18
Process of Entrepreneurship
 1. Identify and
evaluate the Opportunity
opportunity

2. Develop Business
Plan

3. Determine and
Entrepreneur
attract resources
4. Lead and manage
required
resulting enterprise

Resources
Organisation
Factors Influencing Entrepreneurship

Individual

Economic Socio-cultural
Environment factors

Support
Systems

Political Legal Technological

Environment Environment
Environment
Factors Affecting Entrepreneurs
 Advantages of being Entrepreneur
 Bridges gap between Knowledge & application
 Converting idea into money.
 Be your own Boss.
 Better utilization of resources and skills.
 Respected by society
 Salary Potential
 Flexibility & Dynamic
 Job security (You create your own employment.)
 Self-satisfaction, personal achievement, and
recognition
 No Set Schedules
 Independence
Disadvantages of being Entrepreneur (1)

 No Regular Salary
 No Work Schedule
 Administration
 Chance of business failure
 Pressure to succeed
 Stress
 Disadvantages of being
Entrepreneur (2)
 Financial risk
 Sacrifices (family time, financial sacrifices)
 Different Responsibility
 Incompetent staff
 Time management
Examples of Entrepreneurs
1. Dunzo
 Dunzo is an all-in-one online delivery platform based out of Bengaluru. It
promises super-quick deliveries around the clock. In a recent USD40 million
funding round, Dunzo was backed by Google. Dunzo provides hyper-
localized delivery services in Bangalore, Pune, Gurgaon, Hyderabad, New
Delhi, Chennai, and Mumbai.
2. Udaan
 Udaan is renowned as India’s largest B2B eCommerce platform. The
startup is based out of Bengaluru and was founded in 2016. Udaan is
specifically designed for small and medium businesses and provides market
insights, trends, B2B trade features, products across different categories,
secure buying and selling options, and networking facilities.
3. Byju’s
 The startup recently stole headlines after it was said to become India’s most
valued startup after raising USD150 million through UBS funding. Byju’s
was incepted in 2011 in Bengaluru. It is the largest edtech platform in India
that offers world-class learning experiences to K12 class students. Byju’s
effectively inculcates AI, data analytics, and other disruptive techs in its
app. 
4. Zest Money
 It is one of the largest consumer lending fintech companies in India. Zest
money was launched in 2015 and it enables customers who do not have
credit cards to pay in affordable EMIs to online and offline stores. The
startup uses mobile technology, AI, and digital banking to make it happen.
5. Agnikul Cosmos
 Agnikul is an Indian Aerospace manufacturing startup founded in 2017 and
is based in Chennai. According to the company, its aim is to make space
affordable in India. The startup recently raised INR23.4 crores in a pre-
series A funding round. Agnikul is currently on a mission to develop a
satellite launch vehicle with a capacity of 100kg payload.
6. Cure.Fit
 Based in Bengaluru, Cure.Fit came into existence in 2016. It provides a
mobile application that offers a holistic approach towards physical, mental
health and fitness. They have different business verticals including Cult.Fit,
Mind.Fit, and Care.Fit.
7. Razorpay
 India’s first full-stack financial solutions provider, Razorpay has an extensive
product portfolio that caters to digital payment needs. The startup was
founded by IIT Roorkee graduates back in 2014. Razorpay provides
business comprehensive solutions built on a modern technology stack.
8. Qure.ai
 Mumbai-based Qure.ai was incepted in 2016. It offers affordable and
accessible diagnostics by leveraging AI and deep learning technologies.
Qure.ai claims to detect and diagnose medical conditions from the medical
images through connected devices digitally. Another solution provided by
Qure.ai is the automated generation of diagnostic reports from X-rays, CT
Scans, etc.
9. CropIN
 Based in Bengaluru, CropIn is an AI-led Agtech platform. The startup
promises future-ready farming solutions, decision-making tools, digital
insight, and data management solutions. CropIN provides simplified data
gathering through mobile apps, and analyzes them to give actionable and
intelligent insights to businesses in the agriculture sector.
10. Playment
 This Bengaluru-based tech startup is a data labeling platform. It offers a
space to build high-quality datasets for training machine learning models.
Launched in 2015, Playment works with more than 200 machine learning
teams in reputed companies. Playment’s GT Studio offers ML-assisted 2D
and 3D labeling tools, Powerful APIs for easy pipeline integration, etc.
Sarathbabu founder of
FOOD KING
 When 29-year old Sarathbabu
graduated from the Indian
Institute of Management,
Ahmedabad, he created quite
a stir by refusing a job that
offered him a huge salary. He
preferred to start his own
enterprise -- Foodking
Catering Service -- in
Ahmedabad, now widely
famous in Gujarat
“A leader is one who knows the way,
goes the way, and shows the way.”