classification of enterpreneurs

8/7/2019 classification of enterpreneurs

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ENTREPRENEURSHIPENTREPRENEURSHIP

DEVELOPMENTDEVELOPMENTBBABBA--V SEMV SEM


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Entrepreneur Manager

1. Motive Start a venture by setting

up

an enterprise for personal

gratification. Wants

freedom & self reliance.

To render services in an

enterprise set up by

someone else. Wants

promotion, power, salary.

2.Status Owner and is not very

status conscious

Is a worker, and conscious

about status.

3.Risk Bearing Assumes all the risks of

carrying on business.

Takes moderate risks

Does not bear risk

4. Innovation Acts as an innovator and

change agent

Simply translates and

implements the

entrepreneurs plans

5.Qualifications May not have formal

qualifications , but has

qualities like originality,foresight, risk bearing

Generally has formal

qualifications like

management degrees.


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Entrepreneur Manager

6. Rewards The profit earned by the

enterprise. It is highly

uncertain.

Salary is certain and fixed.

7. Decisions Decisive and action

oriented

Implements the owners

decisions.

8. Courage &

Destiny

Confident and see

themselves as owners of

their destiny.

They see others in charge of

their own destiny


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According to the type of business

Use of technology

MotivationGrowth

Stages of development

Area

Gender and ageScale of operation

Others


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According to the type of business1. Business Entrepreneur: They conceive an idea

for a new product or service and then create a

business to turn the idea into reality. They use

and develop both production and marketing

resources to start a business.(Small unit)

2. Trading Entrepreneur: They undertake only

trading activities and not manufacturing. They

identify potential markets, stimulate demand

and create a desire among consumers. May

be engaged in domestic or foreign trade.


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According to the type of business3. Industrial Entrepreneur: A manufacturer who

identifies the potential needs of customers

and produces a product which will satisfythose needs.(Generally large units)

4. Corporate Entrepreneur: A person who

demonstrates his innovative skills in

organising and managing a corporateundertaking. He plans, develops and manages

a corporate body such as a public limited

company or a trust. (Dhirubhai Ambani)


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According to the type of business5. Agricultural Entrepreneur: They undertake

agricultural activities such as raising and

marketing of crops, fertilizers etc. They mayuse mechanization and technology and would

include agriculture and allied occupations.


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According to use of Technology1. Technical Entrepreneurs : He develops

improved quality of goods because of his

skills and concentrates more onmanufacturing than marketing.

2. Non- Technical Entrepreneurs: They are not

concerned with the technical aspects of the

product. They only develop alternativemarketing and distribution strategies for their

products.(Baron International)

3. Professional Entrepreneurs :He is interested

in


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establishing a business , but does not have

interest in managing or operating it. They sell

their businesses and start another venturewith the proceeds.(Sabeer Bhatia of Hotmail)


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According to Motivation1. Pure Entrepreneur: They are motivated by

psychological & economic rewards

(achievement,personal satisfaction, money)2. Induced Entrepreneur: They are induced to

take up entrepreneurial activity on account

the facilities, incentives etc provided by the

govt e.g. incentives for SSIs, financial support ,facilities for exports etc

3. Spontaneous Entrepreneur: They start their

business with their natural talents.They are


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people with confidence, initiative,

boldness etc , which motivates them to

undertake entrepreneurial activity.


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According to Growth

1. Growth Entrepreneurs: are those , who

take up a high growth industry, which

has substantial growth prospects . (IT,Telecom)

2. Super Growth Entrepreneurs: Those who

have shown enormous growth ofperformance in their ventures, which is

reflected in profits, liquidity etc.(Airtel,

Zee)


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According to Stages of development

1. First Generation Entrepreneurs: are

those , who start an industrial

undertaking through innovation andcombining various resources.(J N Tata)

2. Modern Entrepreneurs: Those who

undertake ventures, which suit currentmarket needs.

3. Classical Entrepreneurs: Those who are

concerned with starting an enterprise


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According to Stages of development

aimed at satisfying the consumers

needs and maximising profits.


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According to Area

1. Rural : Entrepreneurs who set up units inrural areas. They generally pertain to

agriculture and allied industries. They requireless investment and low power consumption

2. Urban : Entrepreneurs who set up units inurban areas, such as industrial areas, SEZs etc.

They are larger undertakings employinghundreds of people.


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According to Gender and age

1. Men

2. Women

3. Young4. Old

5. Middle aged


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According to Scale of operations

1. Larger scale: large undertakings, employinglarge no. of people, with no limit on

investment.2. Small Scale: Industrial undertakings in

which there is a maximum investment of Rs 1

cr (Rs 5 cr for some categories e.g. sports

goods), employ limited no. of people and havelimited power requirements etc.


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Others: Clarence Danhof has classified

entrepreneurs on the basis of stages of

economic development:

1. Innovating Entrepreneurs: They introducenew goods, new methods of production,

discover new markets etc. They can exist only

if a certain level of development exists in the

economy.

2. Adoptive or Imitative entrepreneurs:They imitate technology and techniques used


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by others. They do not innovate. Such

entrepreneurs are suitable for

underdeveloped/ developing nations. They

may adapt the business according to localrequirements.

3. Fabian Entrepreneurs :They have atraditional outlook and do not believe in

introducing changes in the nature of businessor adopting new methods. Their work is

determined by traditions, customs, religion

etc.


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4. Drone Entrepreneurs: They also operate ina traditional way and resist any changes in the

manner of doing business/method ofproduction, even if they suffer losses. Their

purpose is to exist and not grow.


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Theories of EntrepreneurshipTheories of Entrepreneurship

1. Economic Theory2. Leibensteins X Efficiency Theory3. Dynamic Entrepreneurship Innovation Theory4. Harvard School Theory5. Theory of High Achievement6. Theory of Change7. Theory of Profit8. Theory of adjustment of price9. Theory of market

10. Theory of social change11. Theory of entrepreneurial supply12. Theory of personal resourcefulness13. Theory of Cultural Values.


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classification of enterpreneurs

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