Entrepreneurs are essential for the growth of any country. They usually set up something new on their own and create many jobs for others. They also play an important role in the economy. However, to choose the right path in entrepreneurship, we need to know about different types of entrepreneurs. Each type has its responsibilities, roles, functions, and more. In this article, we are discussing different types of entrepreneurs and their definitions.
Entrepreneurs are categorized into different types and these types usually vary depending on the country, region, and even sector. Here there are six categories of various entrepreneurs:
BASED ON BUSINESS:
TRADING ENTREPRENEUR: A trading entrepreneur refers to a person who undertakes business-related activities through trading. These types of entrepreneurs usually buy finished goods in bulk quantity from manufacturers with some discount and then they sell those products directly or with the help of retailers or vendors with profits. A trading entrepreneur usually acts as a mediator between manufacturers and customers. These trading entrepreneurs mostly be as wholesalers, retailers, dealers, etc.
MANUFACTURING ENTREPRENEUR: This type of entrepreneurs plays a main role in manufacturing products. Manufacturing entrepreneurs analyze market needs or customer needs and manufacture products to meet such needs using various resources or technologies. In simple words, manufacturing entrepreneurs transform raw materials into finished products according to the customer’s needs. Manufacturing entrepreneurs basically be in fields of manufacturing textile products, food products, industrial machinery and equipment etc..
AGRICULTURE ENTREPRENEUR: Agricultural entrepreneurs refer to the types of entrepreneurs who primarily practices with agricultural works. They are also called “Agric-entrepreneurs”. These entrepreneurs be within the agricultural sector who are engaged in the cultivation, production and marketing of agricultural products.
BASED ON TECHNOLOGY:
TECHNICAL ENTREPRENEUR: These are the entrepreneurs who used to start and continue industries primarily based on science and technology. These entrepreneurs develop new ideas and turn those ideas into technology-based inventions. They always work to create new methods of production in the fields of technology and science. Besides, they also manufacture products that can help ordinary citizens and other non-technical entrepreneurs for their enterprises. Example personalities of technical entrepreneurs are Jeff Bezos, Elon Musk, Bill Gates etc..
NON-TECHNICAL ENTREPRENEUR: These are the entrepreneurs who do not set up and run enterprises based on science and technology. In short, non-tech entrepreneurs are those who work for innovations using traditional methods. They typically use alternative and exemplary marketing methods and follow non-technical delivery strategies to engage directly with customers. Example personalities of non-technical entrepreneurs are Starbucks fame Howard Schultz, Reliance fame Dhirubhai Ambani etc..
BASED ON OWNERSHIP:
PRIVATE ENTREPRENEUR: When an entrepreneur starts something personal of his or her own, such as setting up an enterprise, he/she is called a private entrepreneur. A private entrepreneur is the only person who plays the sole proprietor role for a business venture and bears the risk associated with it. Examples of private entrepreneurship are Tesla, hospitals etc..
STATE ENTREPRENEUR: When a state or government does a business or industrial undertaking, it is referred to as a ‘state entrepreneur’. In this case, the government is the sole owner of the enterprise and will bear all the profits and losses involved with it.
JOINT ENTREPRENEUR: When a business or industrial undertaking is established and operated jointly by the private entrepreneur and the government, it is called joint entrepreneurship. The parties involved are called joint entrepreneurs. In this case, risk and profits are shared by both parties. However, the sharing percentages generally depend on the type of business and the agreement between the two parties. Examples of joint ventures are ONGC, BHEL etc…
BASED ON SIZE OF THE ENTREPRENEUR:
SMALL SCALE ENTREPRENEUR: If an entrepreneur has invested up to a maximum of one crore in starting an enterprise, including plant and machinery, such entrepreneur is called Small Scale Entrepreneur.
MEDIUM SCALE ENTREPRENEUR: If an entrepreneur has invested a minimum of 1 crore to a maximum of 5 crores in starting an enterprise, including plant and machinery, then such entrepreneur is called Medium Scale Entrepreneur.
LARGE SCALE ENTREPRENEUR: If an entrepreneur has invested more than 5 crores in starting an enterprise, including plant and machinery, such an entrepreneur is called a large-scale entrepreneur. This includes any investment above 5 crores.
BASED ON SPECIFIC CHARACTERISTICS:
IMITATIVE ENTREPRENUERS: Imitative entrepreneurs are the one who mainly follow and adopt the innovative entrepreneurs’ who are in existing successful enterprise system. They do nothing new of their own. Imitative entrepreneurs apply strategy from other enterprises in a manner where all core fundamentals of the original business model are replicated, and all efficiencies are retained. These entrepreneurs help improve any product, production process or suggest the use of improved technology addressed by other enterprises. Imitative entrepreneurs are also called as Adoptive entrepreneurs.
SOCIAL ENTREPRENEUR: These type of entrepreneurs recognize the problems in society and try to reduce those problems by applying some entrepreneurial skills. Most of the social entrepreneurs don’t seek for profits they solely work on the controlling social problems.
FABIAN ENTREPRENEUR: Fabian entrepreneurs are defined as an entrepreneurs who generally do not seek to implement changes in their enterprise techniques. They are very careful in applying any approach and cautious in exercising any change. These entrepreneurs are known for not making sudden decisions. They imitate the change in their strategy only when they know that enterprise surely results in profit making.
DRONE ENTREPRENEUR: Drone entrepreneurs are defined as entrepreneurs who do not like to adopt any changes in their enterprise techniques. They strictly follow their traditional strategies or methods for development, production or marketing. These entrepreneurs feel or experience pride and tradition in the old ways of doing business. This is why drone entrepreneurs sometimes suffer losses, yet they do not adopt changes in their current methods.
ECO ENTREPRENEUR: Eco entrepreneurs are the one who spot the opportunities in the environment to start business which support sustainability. The innovations of eco entrepreneur are considered as green business innovations.
So, Guys I have tried my best to explain the various kinds of entrepreneurs. Now it’s your turn to let me know what type of entrepreneurial character you have in the above listed types through your comments.