On the basis of Clarence Denhoff (1949) study of American agriculture, categorized entrepreneurs in the way that in the early stages of economic development, entrepreneurs have less initiative and drive and become more innovative and enthusiastic as economic growth progresses. Below we have discussed different types of entrepreneur:
• Innovating entrepreneurs: Innovating entrepreneurs are those who introduce new goods. Inauguration of new method of production, discovery of new market and restructuring of enterprise. It is important to note that such entrepreneurs can work only when a certain level of development is already attained, and people are ready for change and improvement.
• Influential Entrepreneurs: These are characterized by new entrepreneurs’ readiness to adopt successful innovations inaugurated. Influential entrepreneurs do not innovate the changes themselves, they simply emulate technology that is innovated by others. Entrepreneurs of this type are particularly well suited to underdeveloped areas to bring a mushroom drive mimicking a new combination of factors of production already available in developed regions.
• Fabian Entrepreneurs: Fabian entrepreneurs are characterized by great care and skepticism in exercising any change in their enterprises. They mimic only when it is completely clear that failure to do so will result in a loss of relative position in the enterprise.
• Drone Entrepreneurs: These are characterized by refusal to accept the possibility of changes in production policies, even at the cost of severely reduced earnings compared to others, such as manufacturers. Such entrepreneurs may also suffer losses but they are not ready to change their existing production methods.
Types of entrepreneur based on business type:
• Trading Entrepreneur: As the name itself suggests, Trading Enterprise undertakes trading activities. They purchase finished products from manufacturers and sell them directly to customers or through a retailer. They serve as middlemen as dealers, wholesalers, and retailers between manufacturers and customers.
• Manufacturing Entrepreneurs: Manufacturing entrepreneurs manufacture products. They identify customer needs and, then, explore the resources and technology used to manufacture products to meet customer needs. In other words, manufacturing entrepreneurs convert raw materials into finished products.
• Agricultural Entrepreneurs: Entrepreneurs who do agricultural work are called agricultural entrepreneurs. They cover a wide spectrum of agricultural activities such as farming, agricultural produce irrigation, mechanization, and technology.
Types of entrepreneur based on the use of technology:
• Technical Entrepreneur: Entrepreneurs who establish and run science and technology-based industries are called technical entrepreneurs. Alternatively speaking, these are entrepreneurs who use science and technology in their enterprises. As expected, they use newer and newer methods of production in their enterprises.
• Non-technical entrepreneurs: Based on the use of technology, entrepreneurs who are not technical entrepreneurs are non-technical entrepreneurs. Science and technology are not the basis of their enterprises. They are concerned with the use of alternative and exemplary methods of marketing and distribution strategies to keep their business alive and in a competitive market.
Types of entrepreneur based on ownership:
• Private entrepreneur: A private entrepreneur is one who establishes a business venture as an individual. He/she is the sole owner of the enterprise and bears the entire risk involved.
• State Entrepreneurs: When a business or industrial venture is undertaken by the State or the Government, it is called a State Entrepreneur.
• Joint Entrepreneurs: When a private entrepreneur and the government jointly runs a business, it is called joint entrepreneurs.
Types of entrepreneur based on gender:
• Male Entrepreneurs: When business ventures are owned, managed and controlled by men, they are called ‘male entrepreneurs’.
• Women Entrepreneurs: Women entrepreneurs are defined as enterprises owned and controlled by a woman or women with a minimum financial interest of 51 percent of the capital and at least 51 percent of the employment generated in the enterprise to women.
Types of entrepreneur based on the size of the enterprise:
• Small Scale Entrepreneur: An entrepreneur who has invested in plant and machinery up to Rs.100 crores is called Small Scale Industries.
• Medium-Scale Entrepreneur: An entrepreneur who has invested in plant and machinery worth more than Rs.100 crore, but less than Rs.5.00 crore is called a medium-level entrepreneur.
• Large scale entrepreneur: The entrepreneur who has invested more than Rs.500 crores in plant and machinery is called ‘large scale entrepreneur’.