Types of Entrepreneurs

Entrepreneurs are not all alike; they can be classified in several ways.

On the basis of attitude to change and innovation (Clarence Danhof's classification)

• Innovative entrepreneurs. They introduce new products, new methods of production, new markets or new forms of organisation. They are aggressive and experiment-minded, and are usually found in developed economies. Their pioneering spirit drives major economic change.
• Imitative (adoptive) entrepreneurs. They do not innovate themselves but copy or adopt successful innovations made by others. They are important in developing economies, where they spread proven ideas at lower cost and risk.
• Fabian entrepreneurs. Cautious, shy and traditional; they change only when it is absolutely clear that not changing will harm the business. They imitate only when failure to do so would be fatal.
• Drone entrepreneurs. Rigidly conservative; they refuse to adopt new methods even at the cost of reduced returns, and may be pushed out of the market. ('Drone' refers to their resistance to change.)

On the basis of the type of business

• Business (trading) entrepreneurs — deal in buying and selling of goods and services.
• Industrial (manufacturing) entrepreneurs — set up manufacturing units that convert raw materials into finished products.
• Agricultural entrepreneurs — engaged in agriculture and allied activities such as farming, dairying and horticulture.
• Corporate entrepreneurs — promote and manage joint-stock companies and corporate undertakings.

On the basis of scale of enterprise

• Small-scale entrepreneurs and large-scale entrepreneurs, distinguished by the size of investment and operations.

On the basis of use of technology

• Technical entrepreneurs — production-oriented, strong in the technical/engineering side.
• Non-technical entrepreneurs — focused on marketing, distribution and promotion rather than technology.

Other commonly noted types

• First-generation entrepreneurs — start a venture without any prior family business background. …