Class 4-classification of entrepreneurs

1. Classification
of
Entrepreneurs

2. Based on nature of operations
1.Trading Entrepreneurs (Buying-Selling)
2.Manufacturing Entrepreneurs (Production)
3.Agricultural Entrepreneur (Cultivation)
4.Services Entrepreneur ( Intangible)

3. 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)

4. Based on Gender
1.Men Entrepreneurs:
2.Women Entrepreneurs:
–Investment = more than 50%
–Employment to women more than 50%
–Management, Decision Making by Women

5. 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

6. Based on the Size
Table 5.1 Bases of Defining small business in various countries
Criterion Countries
1.Investment in plant and machinery
2.Employment
3.Investment and employment
4.Production/sales turnover
5.Employment and sales turnover
6.Investment and sales turnover
India, Pakistan, Indonesia
USA and UK
Japan, Korea and Phillipines
China, UK (commercial)
Korea (commerce)
Malayasia

7. Based on participation in
business operations
1.Full-time Entrepreneur (Active)
2.Part-time Entrepreneur (Passive)
1.Active Entrepreneur
2.Passive Entrepreneur

8. 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

9. Based on Clarence Danhof classification
1.Innovating Entrepreneurs:
2.Imitative Entrepreneurs:
3.Fabian Entrepreneurs:
4.Drone Entrepreneurs:

10. 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.

11. 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.

12. 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.

13. 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.

14. Entrepreneurship
as a Process

15. 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.

16. 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

17. Entrepreneurship as a process

18. Characteristics, Qualities
and Skills
of
Entrepreneurs

19. 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

20. skills and qualities of
Entrepreneur
1.Imagination and creativity
2.Need for achievement
3.Risk Taking Propensity
4.Leadership
5.Communication Skills
6.Interpersonal Skills
7.Social Responsibility

21. Key skills of an Entrepreneur

22. B a s e d o n t THANK YOU