Page 25 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes 2.1.4 Classification based on the Stages of Development

First Generation Entrepreneur: A first-generation entrepreneur is one who starts an industrial
unit by means of an innovative skill. He is essentially an innovator combining different
technologies to produce a marketable product or service.
Modern Entrepreneur: A modern entrepreneur is one who undertakes business to satisfy the
contemporary demands of the market. They undertake those ventures which suit the current
socio-cultural trends.
Classical Entrepreneur: A classical entrepreneur a stereo-type entrepreneur is one whose aim is
to maximize the economic returns at a level consistent with the survival of the firm, with or
without element of growth.

Caselet Learn to be on your Own

urli and Mohan were the two sons of a businessman named Biswajeet–a famous
builder. Biswajeet was a self-made man, he had risen from ‘rags to riches’ and
Mhad worked hard all his life to attain his current position of being one of the
best builders in the town, both in terms of quality of construction and in public relations.
His two sons also had an inclination towards the construction business and wanted to join
their father after completing their Bachelors in Architecture and their Masters in Business
Administration. They had happily returned home and expressed their wish of joining the
family-owned business. But Biswajeet had different plans. The brothers were surprised
when Biswajeet announced at the dining table, “Murli and Mohan, I have an important
thing to discuss. As both of you know that I am a self-made man, I have gone my way and
have taken no direction from anyone. In fact, I have taken the onus of all the decisions,
good or bad. So now when both of you have armed yourself with formal education,
I would like both of you to take over from me and run the show on you own”.

“But Dad your experience will only add to our education” exclaimed Murli.
“And Dad, your vision will guide us towards greater success. Moreover, you have a good
image in market and it will take ages for us to develop the same market image all over
again”, retorted Mohan.
“Son, I want you to be on your own. I have performed all the duties of a father till now and
now I want you to take over the show. You are right that I have experience and an image
which can be built only over period of time, but remember, I have done it all by myself
and without even financial backing. Believe me, my sons, the kind of self-respect that you
would gain for yourself and the kind of business acumen you would evolve on being on
your own is not possible under my umbrella.”, replied Biswajeet.

“But Dad, how would we do it without you?” asked Murli.
“Let me correct you here again. It’s not we but I want both of you to takeup independent
charge of your fortune and hence I have decided to divide my entire property into two
equal halves and transfer it to both of you. I wish that both of you work independently for
your own good and also for a good relationship between brothers. In a way, both of you
would become business rivals but then there would be not just one but many more
business players in the field. So get yourself charged and start drawing your independent
business plans,” said Biswajeet.
Source: Lall.Madhurima, Sahai.Shikha (2008), “Entrepreneurship”. Excel Books Pvt. Ltd.

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