Page 24 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 2: Classifications and Models of Entrepreneurship

totally determined. They do not need any external stimulus but are self-driven. Their Notes
characteristics can be termed as achievement personified. They can rightly be called go-getters.
This personality often will cause them to build their business around their own personal brand.
These entrepreneurs have dreams and dare to fulfill their dreams.

Example: Narayan Murthy, who had a settled life and was working, quit his job and
ventured out on his own to start Infosys.
The Induced Entrepreneur: These types of entrepreneurs are induced by some external factors to
start a business. The external factors could be like supporting government policies, unemployment,
family support, facilitating institutional support, etc. These types of entrepreneur turn out to be
more realistic in their approach. For instance, when the government announced subsidies, tax
rebates and financial support to small scale industries, several entrepreneurs started their business
as SSIs.

The Idea Generator: These kinds of entrepreneurs are highly creative people who are always in
search of innovative ideas for setting up new business ventures. They have the ability to sense
the demand much ahead of others.

Notes Idea generator entrepreneurs enjoy the First Movers’ Advantage and are able to
skim higher profits from the market. They can rightly be given the title of ‘Essence of
Entrepreneurship’. Like Bill Gates of Microsoft, who began the manufacturing of
microcomputer softwares.

The Real Manager: The real managers run the business in a systematic manner. They analyze
business situations, assess the demands of future, both in terms of opportunities and threats and
then take actions based on the above assessments. They believe in incremental changes rather
than radical transformations.

The Real Achievers: The real achievers are full of life. They are looking for the achievement of
not even their own goals but also of people associated with themselves like employees, suppliers
and distributors.

2.1.3 Classification based on the Type of Business

Industrial Entrepreneur: Industrial entrepreneur is an entrepreneur who is into manufacturing
of a product. He identifies the needs and wants of customers and accordingly manufactures
products to satisfy these needs and wants. It would include all the entrepreneurs essentially into
manufacturing.

Trading Entrepreneurs: Trading entrepreneur is one who undertakes trading activities (buying
and selling of goods and services) and is not concerned with the manufacturing of products. He
identifies potential markets, stimulates demands and generates interests among buyers to
purchase a product.
Corporate Entrepreneur: Corporate entrepreneur is a person who demonstrates his innovative
skill in organizing and managing a corporate undertaking (which is registered under some
statute or act that gives it a separate legal entity).

Agricultural Entrepreneur: Agricultural entrepreneurs are those entrepreneurs who undertake
business related to agricultural activities. Like farm equipments, fertilizers and other inputs of
agriculture. They provide supportive products that can increase the agricultural production
through biotechnologies, mechanization and improvement in agricultural yield.

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