Thus entrepreneurs can be classified on different basis but the fact is that the entrepreneur should be considered as an innovator helping in economic development of the economy. Such type of entrepreneur can work only when the business has already been developed. The entrepreneurs are more keen on keeping the unit running, handles the environment effectively, but does not initiate development. They can belong to rural areas, urban areas or partially rural and partially urban nature. Small enterprises outnumber the large ones in every country. Entrepreneurs by Inheritance. 1.2.1 Business activity in terms of primary, secondary and tertiary sectors: All you need to do is print out the part of the work sheet you want to use, explain and/or discuss the sub topic for no more than 5 - 10 minutes and guide the students as they work on the tasks. Classification of Different Types of Companies. Prohibited Content 3. Report a Violation 10. Failure of this type of entrepreneurs can be reduced with proper training. Entrepreneurs of this type are very cautious skeptical while practicing any change. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Sometimes, there is a need to adjust and adopt the new technologies to their special conditions. Thereafter, it becomes necessary to institutionalize entrepreneurship. a) First generation entrepreneur – He is one who starts an industrial unit by means of an innovative skill. They are conventional in the sense that they stick to conventional products and ideas. First Generation Entrepreneur 17. On the basis of nationality like national and multinational. Then it is called regional combination. Other Categories. These are the ones where the family members inherit or in a usual way accept entrepreneurship as a vocation (down the ladder from the fathers, grandfathers,…..forefathers) Entrepreneurship spreads when the joint family breaks further. Business is any activity that involves buying and selling of goods and services with a profit motive. On the basis of investments as autonomous and induced investments and linkage investment like imitator complementary and supplementary. He is also called “Laggard’, who would be pushed out of the market when the product loses its marketability. Stages of Development 5. v. Discovering the new line of distribution etc. This is because the urban entrepreneur comes from the urban place and he does not like to work in the rural place as he is not used to rural life. 21. The classification on the basis of functions and that too based on definitions is not appropriate. In India, Fabian entrepreneurs have not done any business in certain items though there was much scope and availability of natural resources. Amar Gopal Bose of Bose Corporation). Industrial Entrepreneur 13. All rights reserved. These are the ones who demonstrate their innovative skills in organising and managing a corporate undertaking. He is business’ first and most valuable human resource. The ordinary producers repeat the same production for years whereas innovators produce new goods in new ways and enter into new markets by undertaking new methods of organisation. When the entrepreneur is shy and humble the environment is underdeveloped and it is developed only when he is strong, skillful and innovative. This website and its content is subject to our Terms and Individual and Institutional Entrepreneurs: Classification of Entrepreneur – According to the Type of Business, Use of Technology, Motivation, Growth and Stages of Development, Classification of Entrepreneur –  Innovative, Adoptive, Fabian, Drone and Other Types of Classification, Classification of Entrepreneur – Innovative Entrepreneurs, Adoptive Entrepreneurs, Fabian Entrepreneurs and Drone Entrepreneurs, Learn Accounting: Notes, Procedures, Problems and Solutions, Classification of Budget | Cost Accountancy, Research Cost: Meaning and Treatment | Overheads Accounting, Current Assets: Meaning and Classification. Imitative entrepreneurs are generally found in developing countries. Moreover, the “association of different types of companies in allied lines is a circular combination.”. Schumpeter’s entrepreneur was of this type. However, these entrepreneurs face lesser risks and uncertainty then innovative entrepreneurs innovative entrepreneurs are creative, imitative entrepreneurs are adoptive. Other Types of Classifications of Entrepreneurs. The spontaneity and continuity of the process would depend on the kind of people that can be promoted and groomed in the entrepreneurial career. They change only when there is an imminent threat to the very existence of business. They raise the necessary capital and employ experts in financial, legal, marketing and other areas of business. They have neither the will to introduce new changes nor the desire to adopt new methods innovated by others. It relates to the partnership in family members and between the kith and kins. Fabian entrepreneurs always have negative attitude and, hence, modern methods and techniques of production cannot be applied because of which the costs cannot be reduced. Type of Banks on the Basis of Ownership 4. Thus they are dawdlers as they choose to continue working in their conventional way and resist changes. Such entrepreneurs are shy and lazy. The moneylenders of yesteryears enter into business due to decline of money lending business with the growth of banking and government legislation. Innovative entrepreneur is one who always looks at providing an opportunity for introducing a new technique of production process or a new commodity or a new market or arranges reorganisation. Question: Discuss the basis of business classification using examples. They are laggards as they continue to operate in their traditional way and resist changes. Partnership – Such entrepreneurs perform in groups or have partners in a business. The real achievers are full of life. This category of entrepreneurs include such groups of persons which neither accept the new trends, technologies and innovations nor leave the old customs, traditions and beliefs. Complete information on the role of technology on society and its effects. In the initial stages of development, entrepreneurs displayed less motivation and weaker drives. These entrepreneurs are mostly confined to local market, hesitant to try beyond that.