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2. Manufacturing Entrepreneur:
3. Agricultural Entrepreneur:
ADVERTISEMENTS:
2. Non-Technical Entrepreneur:
Based on Ownership:
1. Private Entrepreneur:
ADVERTISEMENTS:
2. State Entrepreneur:
When the trading or industrial venture is undertaken by the State or
the Government, it is called ‘state entrepreneur.’
3. Joint Entrepreneurs:
When a private entrepreneur and the Government jointly run a
business enterprise, it is called ‘joint entrepreneurs.’
Based on Gender:
1. Men Entrepreneurs:
2. Women Entrepreneurs:
2. Medium-Scale Entrepreneur:
3. Large-Scale entrepreneur
The entrepreneur who has made investment in plant and machinery
more than Rs 5.00 crore is called ‘large-scale entrepreneur.’
Other types :
1. Innovating Entrepreneurs:
2. Imitative Entrepreneurs:
3. Fabian Entrepreneurs:
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. Entrepreneurs who only
contribute funds to the enterprise but do not actively participate in
business activity are called simply ‘partners’.
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
challenges it presents. When one challenge seems to be met, they
begin to look for new challenges.
5. Buyers:
These are those entrepreneurs who do not like to bear much risk.
Hence, in order to reduce risk involved in setting up a new enterprise,
they like to buy the ongoing one.
6. Life-Timers:
These entrepreneurs take business as an integral part to their life.
Usually, the family enterprise and businesses which mainly depend on
exercise of personal skill fall in this type/category of entrepreneurs.
Myths of entrepreneurs
1. Entrepreneurs Are Less Stressed Than Employees
4. Entrepreneurship Is Genetic:
People think that if any of their family members is or has been in business, then starting
or running a business is in their genetics. There is no such thing as that; rather business
is a science that has to be learned. Therefore, if you are pursuing entrepreneurship out
of this notion, then I am afraid you are on the wrong path.
There is no denying the fact that the lack of capital is the major hurdle for most of the
entrepreneurs in pursuing their goal, however, the availability of capital does not mean
that you are ready to start a business. Instead of blindly investing your money into a
venture, you need to first learn about things and then decide whether an investment is
worth your capital or not.
Another charm that attracts people towards entrepreneurship is that in a venture they
are their own bosses, hence they don’t have to respond to anyone. The fact is on the
contrary, as being an entrepreneur means responding to creditors, suppliers, investors
and above all customers. Therefore, if being a boss is your only motive for
entrepreneurship, then think again.
8. It Works Well For Others:
Another factor that attracts people towards entrepreneurship, which is also a myth, is
that if it is working well for others it will work well for you as well. People think that
someone in their circle of friends seems to be enjoying entrepreneurship, so they will
also enjoy it. However, people forget that people have the tendency to lie and
exaggerate, therefore, until and unless you are not aware of reality, don’t idealize
becoming an entrepreneur just because of its charm.
Perhaps the biggest o fall reasons why people become entrepreneurs is they think that
it is their train to becoming rich. Although every business comes with the chances of
making money, however, the risk factor in business can never be ignored and the
chances of failure are as great as the chances of success. Therefore, aim for achieving
success in whatever small or big you want to do instead of becoming rich out of doing it.
People think that by becoming an entrepreneur they will be helping the society. Although
it is a good objective to have, however, it is only valid once you have made the business
a success and that success is evident in the bottom line of the business. Therefore, first
aim for making the business a success and then help society in whatever way possible
Module 2 pdf
Formalities for setting small business