module ii edp

8/7/2019 Module II Edp

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Entrepreneurial Traits andtypes


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An entrepreneur today is considered as onewho prefers to take moderate risk, start andbuild his own enterprise rather than take up a

job. In terms of motivation , he has an enduring

need to achieve and excel.

He tries to have an independent status.


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He tends to be innovative and dynamic.

He is prepared to take up personalresponsibilities.

He is determined to know the results of hisefforts.

These qualities easily distinguish him from

others.


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In order to be successful an entrepreneurshould possess some qualities and traits.

Some of the qualities are inherent but othersare mostly acquired.

Some of the qualities and traits of a successfulentrepreneur are as follows.


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1. Willingness to make scarifies and assume risks.

2. Leadership.

3.

Decisiveness4. Creative Thinking

5. Confidence in the project

6. Technical Knowledge and willingness to

change7. Ability to Marshall resources

8. Marketing oreintation.


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1. Capacity to take risk2. Capacity to work hard3. Capacity to take advantage of external situation

4. Intelligence5. Motivation6. Knowledge7. Imagination8. Initiative9. Sociability10. Inventive ability11. Vision & foresight


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1. Desire to take personal responsibility2. Creative thinking3. Leadership quality

4. Confidence in project undertaken5. Technical Knowledge6. Ability to Marshall resources7. Decisiveness8. Strong need for achievement9. High degree of ambition10. Will to conquer11. Market orientation


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Entrepreneurs are of different types

1. ON the basis of type of business

2. On the basis of use of technology

3. ON the basis of motivation


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1. Business entrepreneur : He is an individualwho discovers an idea to start a business andthen builds a business to give birth to his idea.

2. Trading entrepreneur: He is an entrepreneurwho undertakes trading activity i.e: buying andselling of manufactured goods. He does notundertake manufacturing activity.


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3. Industrial entrepreneur: He is theentrepreneur who undertakes manufacturingactivity. He identifies the needs and wants of

customers and produces goods to sit the needsand desires of consumer.

4. Corporate entrepreneur : He is a person whodemonstrates his innovative sill in organizingand managing a corporate undertaking.


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5. Agricultural entrepreneur: They areentrepreneurs who undertake agriculturalactivities such as raising and marketing of

crops ,fertilizers and other inputs ofagriculture.


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1. Technical Entrepreneur: Technicalentrepreneurs are extremely task oriented.They are of craftsman type. They develop new

and improved quality of goods because theircraftsmanship. They concentrate more onproduction than on marketing.


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2. Non Technical entrepreneur : Theseentrepreneurs are not concerned with thetechnical aspects of the product. They develop

marketing techniques and distributionstrategies to promote their business.

3.Professional entrepreneur : He isentrepreneur who stats a business unit butdoes not carry on the business for long period.He sells out the running business and startsanother venture.


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1. Pure entrepreneur : He is an entrepreneur whois motivated by psychological & economicrewards. He undertakes an entrepreneurial

activity for his personal satisfaction , ego orstatus.

2. Induced entrepreneur : He is an entrepreneurwho is an induces to take up an entrepreneurialactivity due to assistance, incentives ,subsidiesand infrastructure provide by government.


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3. Motivated entrepreneur : They are newentrepreneurs motivated by the desire for selffulfillment. They start venture because of the

possibility of producing and marketing somenew product for the use of consumers.


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1. First generation entrepreneur : he is onewho stats an industrial unit by means ofinnovative skills. He is essentially an innovator.

He applies technology and produce a productor service. He is also called new entrepreneur.

2. Modern entrepreneur : He is an entrepreneurwho under takes those ventures which suitthe modern marketing needs.


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3.Classical entrepreneurs : He is one whodevelops a self supporting venture for thesatisfaction of customers needs . He does not

undertake any innovation.


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1. Managing entrepreneurs : These areentrepreneurs whose chief goal is security.

2. Controlling entrepreneurs : These are the

entrepreneur who above all desire power.


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Clarence Danhof , on the basis of his study ofAmerican agriculture, classified entrepreneursin the manners that at the initial stage of

economic development, entrepreneurs haveless initiative and drive.

As economic development proceeds theybecome more innovating and enthusiastic.


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Under developed economy will produce shy &humble entrepreneurs.

On the other hand a developed economy will

make the innovating entrepreneurs.

On the basis of this theory , Danhof classifiedentrepreneurs in the following categories:


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Persons of this type are generally aggressive onexperimentation and celeverly put attractivepossibilities into practice.

An innovating entrepreneur introduces newgoods , inaugurates new methods ofproduction, discovers new markets andreorganizes the enterprise.


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He may raise money to launch an enterprise ,assemble the various factors, choose topexecutives and set organization going.

According Schumpeter's an innovatingentrepreneurs are commonly found indeveloped countries.

A country with little or no industrial traditioncan hardly produce innovating entrepreneurs.


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It is important to note that such entrepreneurscan work only when certain level ofdevelopment is already achieved and people

look for changes & progress.


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These entrepreneurs are ready to adoptsuccessful innovations created by innovationentrepreneurs.

Imitative entrepreneurs imitate techniques andtechnology innovated by others.

They copy and learn from the innovatingentrepreneurs.


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These entrepreneurs are most suitable forunderdeveloped countries .

Because in these countries people prefer to

imitate the technology , knowledge and skillalready available in the developed countries.

These entrepreneurs help to transform thesystem with limited resources avilable.


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These entrepreneurs face lesser risks anduncertainty as compared to innovatingentrepreneurs.

Imitative entrepreneurs are adoptive.


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These entrepreneurs are very cautious andskeptical in experimenting any change in tehirenterprise.

They have neither the will to introduce newchanges nor the desire to adopt new methodsinnovated by other entrepreneurs.

They are shy & lazy.

They are not much interested in risks


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They try to follow the footsteps of theirpredecessors.

Their dealings are determined by custom ,

religion, tradition & past practices.


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These are those who refuse to adopt and useopportunities to make changes in production .

They would not change the method of

production already introduced. They follow the traditional methods of

production.

They may even suffer losses but they are notready to make changes in their existingproduction methods.


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They are conventional because they becausethey stick on to the conventional products &ideas.


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An individual entrepreneur is one who start shis own business unit & takes decisions byhimself for his business unit.

They are dominant in the small scale sec tor. They have the advantages of flexibility ,quick

decision ,great initiative etc.

But single individual can establish and operateand enterprise up to a certain limit only.


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The business will have to acquire a number ofnew entrepreneurial skills through a corporatebody like joint stock company, co-operative

society etc. Thus joint stock companies , cooperative

organization etc are institutional entrepreneurs.


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At time s people became entrepreneurs whenthey inherit the family business .

In India there are large number of such

entrepreneurs. The ownership is passed from one generation

to another.


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These are those who are forced to becomeentrepreneurs due to the influence of certaincircumstances.

NRI and educate unemployed seeking selfemployment may be described as forcedentrepreneurs.

module ii edp

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