An entrepreneur is an individual who conceives an idea for a new product or service, then finds some way of raising capital to form a business to produce that product or service. There are many types of entrepreneurs.
Types of Entrepreneurs
To facilitate study, the types of entrepreneurs can be stated as follows, on the basis of different activities:
1. Innovative Entrepreneurs
innovating entrepreneurs are those persons who take an interest in innovative activities.
In other words, when an entrepreneur propounds or uses any new commodity, a new method of production, a new organizational system, and a new market, etc. Then he is called the innovator.
Innovating entrepreneur introduces the improvement in the method of production or works for bringing a revolution in that, by executing some new invention.
Such an entrepreneur formulates new combinations enthusiastically, collects the necessary information and new facts, remains highly enthusiastic to carry out experiments and implement the conclusions of research and inventions and enforces the creative changes with full efficiency.
Related: 20 Types of Entrepreneurship (Explained with Examples).
If the entrepreneur performs any of the following functions, he is regarded as an innovating entrepreneur:
- To produce any new commodity.
- To use the new method of production.
- To develop new markets.
- To identify new resources of raw materials, semi-finished products, and energy.
- To direct the new Organisation in any industry.
- To do any other likewise activities of innovation.
The innovative entrepreneurs are mostly in prosperous and developed Nations because sufficient opportunities of research and inventions remain available in these Nations, pressure for changes and innovations persists, intensity of competition, consistent availability of sufficient capital and other resources for introducing innovations, and the consumers also have no shortage of purchasing power for purchasing new commodities.
Therefore, in such a country, the development of an innovative entrepreneur is encouraged as there is sufficient availability of sources of production.
Related: 15 Roles of Entrepreneur as Innovator (Explained).
2. Imitative Entrepreneur
Imitative entrepreneurs are those who run their enterprises by imitating the successful innovations applied by innovative entrepreneurs.
In other words, they do not have an interest in innovative activities, the same as that innovative entrepreneurs.
Rather, they copy the successful innovations of innovative entrepreneurs, like products, raw material, and technique, etc.
Hence, they also called copying entrepreneurs.
Following are the characteristic or imitative or copying entrepreneurs:
- They have no major orientation towards unsuccessful innovations.
- They imitate the successful works of the innovative entrepreneur in their activities.
- Due to limited resources, they themselves do not carry or spend money on research, inventions, and experiments. They make efforts to gain profit by imitating the successes of others.
- These entrepreneurs take relatively lower risks.
Most of the entrepreneurs of developing nations have the tendency to imitate the successful innovations of the entrepreneurs of the advanced countries.
However, the role of imitative entrepreneurs is also important in the development of these countries.
“Not only the innovators but also the imitative entrepreneur plays an important role.”
3. Fabian Entrepreneurs
Fabian Entrepreneurs are those who do imitate the successful innovations, but with required caution.
In other words, when an entrepreneur copies the successful innovation also with great caution or has the tendency to avoid the experiment of imitations, he is called a Fabian entrepreneur.
The Fabian entrepreneur is also known as ‘waiting for the opportunity’, entrepreneur because such an entrepreneur is also imitative, but he waits for favorable opportunities to implement them and he does not implement the innovations, till he is sure that there is no disadvantage in applying innovations.
Thus, the following characteristics may be observed in Fabian entrepreneurs:
- As far as possible search entrepreneurs like to work with old methods only.
- He does not want to take any type of risk by adopting new things.
- Such an entrepreneur takes advantage of imitating successful investors when he is assured that the use of innovations and new techniques will be really profitable.
- Such an entrepreneur is always in the position of skepticism.
- He remains in the position of skepticism regarding his activities, schemes, and programs till the last moment and normally takes decisions in the last moments.
Related: 37 Essential Qualities of a Successful Entrepreneur (Must Know).
4. Drone Entrepreneurs
A drone entrepreneur is who does not want to accept any type of innovation or change.
In other words, when the entrepreneur becomes indifferent towards innovations and wants to lead a comfortable living alone, then he is called a drone or inactive entrepreneur.
Following characteristics may be visualized in drone entrepreneurs:
- He remains indifferent to bring down the costs of production through innovations and adopting new methods of production.
- He operates his industry or business only in a traditional and routine way.
- In the course of time, he starts feeling tired in entrepreneurial activities.
- Such entrepreneurs are interested only to continue their business anyway.
- He remains away from innovations, although it may be much advantageous to him.
- In the long run, such entrepreneurs face business failures.
- He does not like to take any risks and to take any challenging work in the operation of his business.
5. Sole Self Employed Entrepreneurs
The sole self-employed entrepreneur is that who is self-employed by his efforts, abilities, skills, knowledge, training, and art also provides employment to others and works independently.
For example, Doctors, Engineers, Architects, Drama, Artists, etc.
6. WorkForce Builder Entrepreneurs
Workforce builders entrepreneurs are those who independently build operate workshops, computer service centers, and Engineering Service firms, etc.
7. Product Innovators
Product innovators undertake new works for products and commodities, like the production of a new commodity, use of new methods of production, development of New Markets, searching new sources of raw material or semi-finished products, etc.
By doing so, the competitive ability of entrepreneurs become strong.
Related: 21 Role and Importance of Entrepreneur (With Examples).
8. Economy Scale of Entrepreneurs
The economic scale of an entrepreneur means an entrepreneur, who undertakes the function of increasing the purchasing power of the consumers for enhancing their satisfaction, by maximizing production in his organization, at the minimum costs.
This category includes small depots, courier services, and postal business.
9. Pattern Multipliers Entrepreneurs
This types of entrepreneurs increase the patterns of various types of the product by using various formulas and sources of production.
For this purpose, companies provide special rights to the entrepreneurs for making use of the sources.
10. Unutilized Resources Exploiters
He is such an entrepreneur who makes available the materials or commodities for production activities by making exploitations of these natural resources, which have not been used until now for production.
Such an entrepreneur undertakes risky activities and for that, he has to have sufficient courage.
Related: 10 Different Concepts of Entrepreneurship (Explained).
11. Take Over Entrepreneurs
Takeover entrepreneur means an entrepreneur who manages and operates various small firms by taking over them.
Besides, the search entrepreneur operates business also by completely merging these units with his business.
12. Capital Aggregators Entrepreneurs
Capital aggregators are those entrepreneurs who perform two important functions: 1. capital aggregation and 2. active Association in setting up banks and companies like insurance companies, etc.
13. Private Entrepreneurs
These entrepreneurs undertake entrepreneurial activities and take risks with the objective of earning profits and making private assets in the private sector known as private entrepreneurs.
14. Government Entrepreneurs
When the government establishes Industries, business units, with public capital with the objective of public welfare is called government entrepreneurs.
Such entrepreneurs include government or government organization, that operates and manages the industries in public sectors.
Related: 15 Importance of Social Responsibilities of Entrepreneurs.
15. Joint Sector Entrepreneurs
Joint sector entrepreneurs are those, who establish and operate any particular industry in the mutual partnership of Government and private sectors.
16. Cooperative Entrepreneurs
Cooperative entrepreneur implies an entrepreneur who establishes and operates the enterprise with the object to safeguard the economic interest of the members of cooperative organizations and others, for promoting mature welfare.
Such types of entrepreneurs work on the principles of cooperation, and feelings of ‘one for all and all for one’.
17. Small Entrepreneurs
Small entrepreneurs are those who establish and operate a business on a small scale, by making use of local sources.
In the business of such entrepreneurs, the levels of capital, techniques, labor, raw material and skills are quite moderate.
Related: 17 Role and Importance of Small Scale Industries (Economy).
18. Medium Entrepreneurs
There are some medium category entrepreneurs that are not small or big. Also called developing entrepreneurs.
19. Large Scale Entrepreneurs
Large-scale entrepreneurs are those who have a higher capacity to bear risks, and make use of capital, technology, techniques and management skills, on large scale and also perform the function of innovations.
20. Exploitative Entrepreneurs
Exploitative entrepreneurs are those who neglect the interest and needs of society.
They are indifferent towards social responsibilities, works for their own interests and do not give any importance to social-economic activities, with the only objective of earning maximum profits.
Related: 12 Qualities of Effective Leadership in an Entrepreneur.
Thus, the entrepreneurs who are engaged in exploiting the consumers, by hook and Crook are known as exploitative entrepreneurs.
21. Ideal Entrepreneurs
The ideal Entrepreneur is one who performs the following functions, keeping various things in view:
- Full feeling of social goals through these industrial activities.
- To operate and manage his industry for social interest and advantages.
- To pay special attention to innovations, research, expansion of industrial product diversification, etc.
- To remain attentive for employment, income, high living standards and utility creation in the society.
Thus, now you know the types of entrepreneurs and their features.
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