types of entrepreneurs. classification of entrepreneurs.

2. Common classification:
• On the basis of type of business
• Clarence Danhof classification
• Arthur H. Cole classification
• On the basis of ownership
• On the basis of scale of enterprise
• On the basis of motivation
• On the basis of stage of development
• On the basis of technical aspects

3. A. On the basis of type of business, entrepreneurs can be classified as
Business entrepreneur
Trading entrepreneur
Industrial entrepreneur
Corporate entrepreneur
Agricultural entrepreneur

5. B. Clarence Danhof classification:
Innovative
Imitative
Fabian
Drone

6. 1. INNOVATIVE/AGGRESSIVE:
• Innovative entrepreneur is the one who assembles and
synthesizes information and introduces new combinations of
factors of production.
• They are characterized by the smell of innovativeness. These
entrepreneurs sense the opportunities for introduction new
ideas new technology, new markets and creating new
organizations.
• Innovative entrepreneurs are very much helpful for their country
because they bring about a transformation in life style

7. 2. IMITATIVE/ADOPTIVE:
• Imitative entrepreneur simply adopts successful
innovation introduced by other innovators.
• These entrepreneurs imitate the existing
entrepreneurs and setup their enterprise in the
same manner.
• Instead of innovating, they just imitate the
technology and methods innovated by others.

8. 3. Fabian:
These entrepreneurs are
characterized by great caution
and skepticism in
experimenting any change in
their enterprises.
• They only adopt the new
technology when they realize
that failure to adopt will lead to
loss or collapse of the
enterprise.
4. Drone:
 These entrepreneurs are
conservative or orthodox
in outlook.
 They refuse to adopt
changes in production even
at the risk of reduced
returns.

9. C. Arthur H. Cole classification
•
Empirical
Rational
Cognitive

10. 1. Empirical: He is an entrepreneur hardly introduces
anything revolutionary and follows the principle of rule
of thumb.
2. Rational: The rational entrepreneur is well informed
about the general economic conditions and introduces
changes which look more revolutionary.
3. Cognitive: Cognitive entrepreneur is well informed,
draws upon the advice and services of experts and
introduces changes that reflect complete break from
the existing scheme of enterprise.

11. D. On the basis of ownership:
Private
Public

12. • 1.Private: Private entrepreneur is motivated by profit and it
would not enter those sectors of the economy in which prospects
of monetary rewards are not very bright.
• 2. Public: This means that the trading or industrial venture is
undertaken by the state or Central government.

13. E. On the basis of scale of enterprise:
1. Small scale: This classification is especially popular in the
underdeveloped countries. Small entrepreneurs do not posses
the necessary talents and resources to initiate large scale
production and introduce revolutionary technological changes.
2. Large scale: In the developed countries most entrepreneurs
deal with large scale enterprises. They possess the financial and
necessary enterprise initiate and introduce new technical
changes. The result is the developed countries are able to
sustain and develop a high level of technical progress.

14. F. On the basis of motivation:
PURE ENTREPRENEUR
INDUCED ENTREPRENEUR
MOTIVATED ENTREPRENEUR
SPONTANEOUS ENTREPRENEUR

15. 1. Pure entrepreneur:
• He is the one who is motivated by
psychological and economic
factors.
• Ability to handle risk, desire to
enjoy better status, desire to get
recognition in the society, thirst
for making money motivates a
person to take up entrepreneurial
activities.
2. Induced entrepreneur:
• He is the one who takes up
entrepreneurial task due to the
incentives and subsides granted by
the government.
• Generally, financial and technical
assistance provided by the
government motivates a person to
start new ventures.

16. • 3. Motivated entrepreneur:
• They are motivated by the
desire far their self-
fulfillment.
• They emerge because of
the possibility of
producing and, selling
new products. They are
also motivated by
economic factors.
• 4. Spontaneous
entrepreneur:
• A person, turns out to be an
entrepreneur, because of the
natural talent vested in him.
• These entrepreneurs have self
confidence and emerge as
challengers. They take up
entrepreneurial activity in order
to tap their talents. They have
great self confidence in their
talent and are highly
resourceful.

17. G. On the basis of stage of development:
FIRST GENERATION ENTREPRENEUR
MODERN/INNOVATIVE ENTREPRENEUR
CLASSICAL ENTREPRENEUR
INHERITED ENTREPRENEURS

19. H. On the basis of technical aspects:
Technical entrepreneur
Non - technical entrepreneur
Professional entrepreneur

20. 2. NON-TECHNICAL ENTREPRENEUR:
• A non-technical entrepreneur
concentrates more on marketing
activities.
• He tries to find out new strategies for
marketing goods.
• He also promotes his business by
employing various marketing methods.
1. TECHNICAL ENTREPRENEUR:
• A technical entrepreneur is one
who concentrates more on
production activities.
• He has got sound technical
knowledge.
• He utilizes his technical
knowledge and demonstrates his
innovative capabilities. He is also
known as technocrat.

21. 3. PROFESSIONAL ENTREPRENEUR:
• Professional entrepreneur is a person who applies
innovative ideas in setting up of a business.
• He is interested in establishing the enterprises rather than
managing it.
• Once the business is established, the entrepreneur will sell
the business to some one else.

22. Functions of Entrepreneur

23. Functions of Entrepreneur
Idea generation • Implies product selection and project identification.
Determination of
business objectives
• Formulate the business objectives.
• Clear about the nature and type of business.
Raising of funds
• Raise the fund from internal source as well as external
sources.
Procurement of
machines and
materials
• Identify and regularize the sources.

24. Functions of Entrepreneur
Market research
• Undertake market research to know the details of the
intending product.
Determining form
of enterprise
• Based on the nature of the product, volume of investment,
etc.
Recruitment of
manpower
• Requirement for short term and long term.
Implementation of
the project
• Develop schedule and action plan for the implementation of
the project within the time bound.

25. QUALITIES OF AN ENTREPRENEUR
• It is a long term educational activity conducted in a systematic manner on farmer fields to show worth
of new practice/technology.
• “Seeing is believing”, is the basic philosophy of field demonstration.
• Only proven technologies are therefore released for field demonstration to educate farmers through
results obtained in term of varieties released to diseases and pests, quality of grains and overall higher
yields

26. Difference between self employed and entrepreneur

27. Difference between self-employed & entrepreneur.
Two main things illuminate the differences between self-employment
and entrepreneurship:
1. For the self-employed, they have to go to work all the time
regardless of the amount of staff they have. If they don't, the
business will simply stop. It might not stop on that day, but if their
absence is consistent, as days roll over, there is possibility of the
business flopping.
• For an entrepreneur, it is not so. The business keeps going even
with the absence of the boss because he has those who know and
understand his vision and can run things successfully in his
absence.

28. 2. For self-employment, if the owner decides to retire, then
that is the end of the business. If the owner dies, the business
dies as well.
• For entrepreneurship, the business outruns the existence of
the owner because his/her workers are working with him,
hence, they understand the vision, mission and value of the
business but for self-employment, the workers are working
for him, hence, all they do is just to sell the products and
services - they don't understand the mind of the owner.

29. Entrepreneur v/s Manager

30. Factors Entrepreneur Manager
Decisions Strategic. Day to day.
Risk Assumes risk and uncertainty. Careful / avoid.
Rewards
Profits, which are highly uncertain and not
fixed.
Salary which is certain and fixed.
Innovation Acts as innovator / change agent.
A manager simply executes plans prepared by
an entrepreneur.
Role Start-up. Implementation.
Time-span Long term. Short or medium term.
Failures and
mistakes
Deals with them as learning experience. Strives to avoid them.
Entrepreneur v/s Manager