“Entrepreneurs are people who have the ability to see and evaluate business opportunities,together with the necessary resources to take advantage of them and to intimate appropriate action to ensure success.”
-International Labor Organization
Entrepreneur searches for change,responds to it and exploits opportunities.Innovation is the specific tool of an entrepreneur.
-Peter F. Drucker
Entrepreneur is the one who is endowed with more than average capacities in the task of organizing and coordinating the various factors of production.He is pioneer and captain of industry.
Classification of Entrepreneurs
a) Based on Functional Characteristics
Classification Given by Danhof
1. Innovative Entrepreneur
An innovative entrepreneur is one who launches new products, discovers new markets, establishes new methods of production and restructures the enterprise. They focus on revolutionalisation and development.Such entrepreneurs can do well only when certain level of development has already been achieved;they look forward to improving upon the past.
2. Imitative or adoptive entrepreneur
Imitative Entrepreneurs adopt victorious innovations launched by the innovative entrepreneurs. They duplicate the technology and techniques innovated by others and they are suitable for underdeveloped countries. Imitative entrepreneurs are characterized by readiness to adopt successful innovations inaugurated by successful innovating entrepreneurs. Imitative entrepreneurs do not imitate the changes themselves, they only imitate techniques and technologies innovated by others. However, the talent of imitative entrepreneurs should not be under-estimated. Even imitative entrepreneurs are revolutionary and agents of change. They have ability to do things which have not been done before even though, unknown to them, the problem may have been solved in the same way by others. Innovative entrepreneur is creative, while imitative entrepreneur is adoptive.
3. Fabian Entrepreneurs
Fabian entrepreneurs are exemplified by great caution and skepticism in experimenting any change in the organization. They imitate only in situations where it becomes necessary to do so. Such entrepreneurs are shy, lazy and lethargic. They are imitative by nature but are not determined and also lack power. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position of the enterprise.
4. Drone Entrepreneurs
Drone Entrepreneurs suffer losses, as they refuse to make any modifications in the existing production methods. Drone entrepreneurs are characterized by a refusal to adopt opportunities to make changes in production formula even at the cost of severely reduced returns. When competition increases, they are pushed out of the market as it becomes uneconomical for them to exist and operate in a competitive market.