(3) According to the Use of Technology:
(i) Technical entrepreneur
The strength of a technical entrepreneur is in his skill in production techniques. He concentrates more on production than on marketing. He possesses craftsman skill in himself which he applies to develop and to improve the technical aspect of the product.
(ii) Non-technical entrepreneur
Unlike technical entrepreneur, non-technical entrepreneur is not concerned with the technical aspect of the product rather he spends more time in developing alternative strategies of the marketing and distribution to promote his business. His target is not to change the production technique but how to increase the demand of the product in which he is dealing.
(iii) Professional entrepreneur
Professional entrepreneur means an entrepreneur who is interested in floating a business but does not want to manage or operate it . Once the business is established, he sells it out and catches on to float a new business.
(4) According to Stages of Development
(i) First generation entrepreneur
First generation entrepreneur are those entrepreneurs who do not possess any entrepreneurial background. They start an industrial unit by means of their own innovative skills.
(ii) Second generation entrepreneur
Second generation entrepreneur are those entrepreneurs who inherit the family business firms and pass it from one generation to another.
(iii) Classical entrepreneur
A classical entrepreneur is a stereotype entrepreneur whose aim is to maximize his economic returns at a level consistent with the survival of the unit but with or without an element of growth.
(5) Classification Given by Danhof :
Depending upon the level of willingness to create innovative ideas, there can be the following types of entrepreneurs:
i) Innovative entrepreneurs
These entrepreneurs have the ability to think newer, better and more economical ideas of business organization and management. They are the business leaders and contributors to the economic development of a country. An innovating entrepreneur is one who introduces new goods, inaugurates new methods of production, discovers new market and re-organizes the enterprise. He arranges money, launches an enterprise, assembles the various factors, chooses the competent managers and sets his enterprise go.
Inventions like the introduction of a small car ‘Nano’ by Ratan Tata, organized retailing by Kishore Biyani, making mobile phones available to the common may by Anil Ambani are the works of innovative entrepreneurs.
Example: Steve Jobs the founder of iPod, Michael Dell, founder of Dell Computers.