ENTREPRENEURSHIP

The reasons for classification of entrepreneurs.

- To segment then into small and manageable sizes.

- To differentiate one type of entrepreneur from the other
in terms
of roles, functions and characteristics.
- To develop relevant strategies for each group.
- To enable the Government to frame suitable policies.
For example, to promote a self employment scheme,
giving
subsidies or incentives, etc.

CLASSIFICATION ACCORGING TO DYNAMISM :

Innovative Entrepreneurs : An innovative
entrepreneur is
one who introduces new goods, introduces new
methods of
production, discovers new markets and reorganizes the

- Imitative or Adaptive Entrepreneurs :

Imitative entrepreneurs do not innovate changes

themselves. They only imitate techniques and
technology innovated by others. However they
have to adapt and adjust such technologies to
suit their specific conditions.

Fabian Entrepreneurs : Fabian entrepreneurs

are characterized by great caution and skepticism
in experimenting any change in their enterprises.
Their dealings are determined by custom,
religion, and tradition and past practices.

Drone Entrepreneurs : They are

characterized by their refusal to utilize
opportunities to make changes in
production or marketing. They are
laggards because they continue their
business in the traditional way and their
products lose the marketability. Ultimately,
their operations become uneconomical and
they are pushed out of the market.

CLASSIFICATION ACCORDING TO TYPE OF BUSINESS

Business Entrepreneur : They conceive an idea for a

new product or service and then create a business to
convert their idea into reality. The may set up a medium
establishment or a small business unit. Some
entrepreneurs do not have scope to start the business
alone, so they start with two or more partners who are
called active partners on a joint venture. We also find
sleeping partners who only invest capital, but do not
actively participate in the functioning of the business
enterprise.

Trading Entrepreneur : Trading entrepreneur is one

who undertakes trading activities and is not concerned
with any manufacturing activity. He identifies potential
markets, stimulates demand for his product line and
creates a desire and interest among buyers to go in for
his products.

essentially a manufacturer who identifies the potential

needs of customers and manufactures a product or
service to meet the market needs. He is a product oriented person who starts an industrial unit for making a
new product.

Corporate Entrepreneur : Corporate entrepreneur is a

person who demonstrates his innovative skill in
organizing and managing corporate undertakings. A
corporate entrepreneur is thus an individual who plans,
develops and manages a corporate body.

Agricultural Entrepreneur : Agricultural entrepreneurs

are those entrepreneurs who undertake agricultural
activities as raising and marketing of crops, fertilizers and
other inputs of agriculture. They are motivated to raise
agricultural production through mechanisation, irrigation
and application of technologies for dry land agriculture
products.

Retail Entrepreneurs : Like trading entrepreneur, they

do not undertake manufacturing activities. Traders or
Manufacturers give their products to wholesalers who in
turn supply it to retail entrepreneurs who finally reach
individual as well as organizational customers. In India,
we have a huge network of small and big retail traders
spread all over the country. They provide a wide choice to
the customers. For example, medical shops, provision
shops. vegetable and fruit shops, etc.

Service Entrepreneur : These entrepreneurs take up a

social issue or a cause. The Objective is not to make profit
like business entrepreneurs but to serve the society. For
example, Mr. Nirmal, founder entrepreneur of Exnora, Mr.
S. Vidyakar Founder of Udavum Karangal (It is an
organization providing home to 500 orphan children).

CLASSIFICATION ACCORDING TO TECHNOLOGY

Technical Entrepreneurs : They are also called technocrats. A

technical entrepreneur can be compared to a craftsman. He
develops high quality goods because of his craftsmanship. He
concentrates more on production than marketing. He demonstrates
his innovative capabilities in matters relating to production.

Non-technical Entrepreneurs : Non-Technical entrepreneurs are

those who are not concerned with the technical aspects of the
product in which they deal. The are concerned only with developing
alternative marketing and distribution strategies to promote their
business.
Professional Entrepreneurs : Professional entrepreneur is a person
who is interested in establishing a business but does not have an
interest in managing or operating it after its establishment. A
professional entrepreneur sells out the running business and starts
another venture with the sale proceeds. Such an entrepreneur is
dynamic, who keeps on conceiving new ideas to develop alternative e
projects.


Pure Entrepreneurs : A pure entrepreneur is an individual who is
motivated by psychological and economic rewards. He undertakes an
entrepreneurial activity for his personal satisfaction in work, ego or
status or economic benefits.

Induced Entrepreneurs : An induced entrepreneur is one who is

induced to take up an entrepreneurial task due to the policy matters
of the Government. It may be in the form of subsidy, incentives,
concessions and necessary capital or venture support
Motivated Entrepreneurs : New entrepreneurs are motivated by
the desire for self fulfillment. If the product is developed upto a
saleable stage, the entrepreneur is further motivated by reward in
terms of profit.

Spontaneous Entrepreneur : These entrepreneurs start their

business because of their natural talent. They are very bold persons
with initiative, and have enormous confidence in their abilities which
motivate them to undertake entrepreneurial activity. Such
entrepreneurs have strong conviction. They are also called
challengers.

Types of Entrepreneurs- Contd..

Based on Timing of Venture Creation:

Early starters
Experienced
Mature
Based on Socio-cultural Variables:
1st generation entrepreneurs
From Business families
Minority entrepreneurs
Women Entrepreneurs

Project Life Cycle

Like product life cycle, projects also have a life cycle.

A project life Cycle consists of three main stages :

The Pre-investment phase : It is the first phase which

consistaof demand forecasting, evaluation of input,
projections of the financial profile, objective formulation,
selection of strategy, cost-benefit analysis and preinvestment appraisal. The project idea is develops into
an investment proposition during this phase.

The construction phase : This phase begins after the

investment decision is taken. Resources are invested in
acquiring the assets - like land, building, plant,
machinery, communication services, marketing
organization, manpower resources. PERT and CPM
techniques are used in this phase of the project