Commerce · Ch 24 — Types of Entrepreneurs
Classification on the Basis of Motivation
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Classification on the Basis of Motivation
This basis classifies entrepreneurs according to what actually drove them to start the enterprise in the first place.
| Type | What drives them | Illustrative example |
|---|---|---|
| Pure Entrepreneur | Motivated mainly by psychological or economic rewards — the satisfaction of achievement and the prospect of profit — before the enterprise is even started | A person who starts a business purely because they enjoy building something and expect it to be profitable |
| Induced Entrepreneur | Induced to start a venture mainly because of external inducements — government subsidies, tax concessions, low-interest loans, or other facilities offered to promote enterprise | A person who sets up a small unit mainly because a government scheme offers a subsidised loan and a rebate for that category of enterprise |
| Motivated Entrepreneur | Motivated by a strong desire for self-actualisation — to put a specific skill, qualification, or piece of knowledge to productive use | A trained chef who opens a catering business specifically to apply and showcase culinary skill |
| Spontaneous Entrepreneur | Starts a business driven by natural, inborn talent or instinct, without waiting for any external inducement — enterprise almost comes naturally to them | A person from a family of traditional craftspeople who starts a workshop purely out of an inherited natural aptitude for the craft |