Classification of

Entrepreneurs

Based on nature of operations

1. Trading Entrepreneurs (Buying-Selling)

2. Manufacturing Entrepreneurs (Production)

3. Agricultural Entrepreneur (Cultivation)

4. Services Entrepreneur ( Intangible)

Based on Ownership

1. Sole Trader (Single Owner Entity)

2. Partnership ( Two or More Owned Entity)

3. Private Entrepreneur: ( Self Capital Investor)

4. State Entrepreneur: (SOE :State Owned Entity)

5. Joint Entrepreneur: PPP (Public & Private

Partnership : Companies Act-1952)

Based on Gender

1. Men Entrepreneurs:

2. Women Entrepreneurs:– Investment = more than 50%– Employment to women more than 50%– Management, Decision Making by Women

Based on the Size

1. Small scale : Investment from 25 Lakh up to

1 crore on plant and machinery

2. Medium Scale: above 1crore to below 5 crore

3. Large Scale: anything above 5 crore

Based on the Size

Table 5.1 Bases of Defining small business in various countries

Criterion Countries

1. Investment in plant and machinery2. Employment3. Investment and employment4. Production/sales turnover5. Employment and sales turnover6. Investment and sales turnover

India, Pakistan, IndonesiaUSA and UKJapan, Korea and PhillipinesChina, UK (commercial)Korea (commerce)Malayasia

Based on participation in business operations

1. Full-time Entrepreneur (Active)

2. Part-time Entrepreneur (Passive)

1. Active Entrepreneur

2. Passive Entrepreneur

Based on Environment of business

1. Internal Entrepreneur: Intra-preneur

2. External Entrepreneur: Entrepreneur

Intra-preneur is an entrepreneur within an already

established organization.

Eg: Dr. Radhakrishnan Chairman of ISRO, all

the top level employees, management

Based on Clarence Danhof classification

1. Innovating Entrepreneurs:

2. Imitative Entrepreneurs:

3. Fabian Entrepreneurs:

4. Drone Entrepreneurs:

Clarence Danhof Classification (Cont….)

1. Innovating Entrepreneur:• Innovators are the people who introduce new

product or service or initiate a new system in the economy or the environment. They are very positive about what they create which can or not exist in the market as demanded. These entrepreneurs are usually aggressive in nature and present their product or service with zeal and devotion.

• Example: Hennery Ford wanted to replace the petrol fuel or the diesel engine with the Kerosene fuel system.

Clarence Danhof Classification (Cont….)

2. Imitative Entrepreneurs:• These are the people that iterate a certain feature or

innovation in a particular product to make it more appealing and have a competitive edge over the current market. They are looks for short cut to penetrate market and develop a quick and usable product. This type of entrepreneur is much preferred in the underdeveloped countries as there are very few risk takers, the population is not well educated and there is lack of awareness.

• Example: China is a growing economy that provides large opportunity to its citizens. Among them the cellular market is growing through adaptation and modification of the innovative product by the Innovative Companies.

Clarence Danhof Classification (Cont….)

3. Fabian Entrepreneurs:• They are the second generation Entrepreneur and they are

very skeptic about taking a step unless and until they are definite, it would be a loss, if not steps are not taken in time. They only imitate if they see fit and have a clear and broad picture of things. They are do not prefer to take risk, are very rigid and fundamental in there thinking to take risks. They mostly follow the traditional method and do not prefer to change.

• Example: Fabian are more applicable in the Indian rural agriculture environment, where traditional acquired land is passed down to their successors, the new Landlord try to run their business in a pre-historic manner with traditional methods of book keeping and less changes.

Clarence Danhof Classification (Cont….)

4. Drone Entrepreneurs:• They are stubborn to the changes, even if they have

to bear a certain amount of decrease in the profits. They prefer to run the enterprise the way it is regardless of the change in demand and the trend in the market.

• Example: There is a “Beeree” (Old fashion tobacco making process) producer Co-operative that uses employee to make the tobacco by hand. Even though it is a dying industry but it does not stop them.

Entrepreneurship as a Process

Difference b/n Entrepreneurship and Entrepreneur

Entrepreneurship can be described as a process of setting up an enterprise.

Entrepreneurship is a creative activity. Entrepreneurship is the attitude of mind to seek

opportunities, take calculated risks and derive benefits by setting up a venture.

Entrepreneur is a person who starts an enterprise. The process of creation is called

entrepreneurship. The entrepreneur is the actor and

entrepreneurship is the act. The outcome of the actor and the act is called the

enterprise.

Idea Generation

Availability of raw materials and Technology

Corpus fund Creation (Capital )

Purchase of Machinery

Registration of Enterprise

Obtaining of No Objection Certificate

Entrepreneurship is a process

Entrepreneurship as a process

Characteristics, Qualities and Skills

of

Entrepreneurs

Characteristics of a successful entrepreneur

1. Hard Work

2. Desire for achievement

3. Highly optimistic

4. Independence

5. Foresight

6. Good organizer

7. Innovative

8. Perseverance

9. Team Spirit

10. Energetic

11. Health Conscious

12. Ambitious

13. Self - Confident

14. Alertness

15. Single Minded

16. Eager to possess wealth

17. Good Tempered

18. Assume Responsibilities

skills and qualities ofEntrepreneur

1. Imagination and creativity

2. Need for achievement

3. Risk Taking Propensity

4. Leadership

5. Communication Skills

6. Interpersonal Skills

7. Social Responsibility

Key skills of an Entrepreneur

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