Commerce · Ch 24 — Types of Entrepreneurs
Classification on the Basis of Type of Business
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Classification on the Basis of Type of Business
The most commonly used classification groups entrepreneurs by the nature of the economic activity their enterprise performs.
| Type | Meaning | Illustrative example |
|---|---|---|
| Business Entrepreneur | Conceives an idea for a new product or service and creates a business around it; handles the overall setting-up of the enterprise | A person who starts a new packaged-snacks brand after spotting a gap in the local market |
| Trading Entrepreneur | Undertakes trading activities — buying finished goods and selling them — without manufacturing anything | A wholesaler who buys textiles from mills and distributes them to retailers |
| Industrial / Manufacturing Entrepreneur | Sets up an enterprise that manufactures or produces goods, converting raw materials into finished products | A person who sets up a small unit that manufactures plastic household items |
| Corporate Entrepreneur | Organises, promotes, and manages an enterprise in the corporate (company) form, working within a formal legal structure with shareholders and a board | A promoter who floats a private limited company to run a chain of retail outlets |