entrepreneurs not made but born comment types of entrepreneurs

 Q. “Entrepreneurs are not made but born.” Comment on it. Explain different types of Entrepreneurs.

Ans. Entrepreneurs are the persons who takes the risk of new enterprise. It is general perception that entrepreneurs are not made but born. This statement suggests that entrepreneurial quality are inborn. It implies that business family background is considered necessary for the success of an entrepreneur. It also implies that some of the qualities are inborn or hereditary. Thus, entrepreneurs are not made but born.

However some people are of the opinion that entrepreneurs are made not born. They believe that people with adequate knowledge, skill and experience may also become successful entrepreneur. Most of the qualities can be acquired by constant effort and practice. 

In conclusion, entrepreneurs have a combination of inborn and acquired skills and abilities.

Different types of Entrepreneurs: Entrepreneurs can be of classified various basis. Some of important types of entrepreneurs are being explained here:

A. BASED ON THE TYPES OF BUSINESS: An Entrepreneur is found in every type of business. On this basis they can be of following types.

1. Industrial Entrepreneur: Industrial entrepreneurs are essentially considered as manufacturers. He  imdentifies the needs and wants of the customer and manufacturers product according to their need and expectation. He is generally a producer-oriented man. He is found in any Industrial unit such as electronic industry, textile units, machine tool and the like.

2. Trading Entrepreneur: Trading entrepreneur is one who undertakes trading activities (buying and selling of goods and services). He is not engaged in manufacturing. These entrepreneurs identify market opportunities and stimulate demand for their product. Trading may be national and international.

3. Corporate Entrepreneur: A Corporate undertaking is a form of business enterprise which is registered under some state or act which gives it a separate legal entity. A corporate enterpreneur is one who promotes corporation. He is a person who demonstrate his innovative skill in organising and managing a corporate undertaking.

4. Agricultural Entrepreneur: Agricultural entrepreneurs are those who undertake business related agricultural activities. For example, farm equipments, fertilizers and other agricultural inputs. They provide supportive products that can increase the agricultural production through biotechnology and improvement in agricultural yield. In a way, they are engaged in allied agricultural activities.

B. BASED ON THE USE OF TECHNOLOGY: Technology is becoming an important part of every business irrespective of its size and nature. The entrepreneur on the basis of technology usage can be:

1. Technical Entrepreneur: A technical entrepreneur is generally compared to ‘Craftsman’. He mainly concentrates more on production area than marketing. He demonstrates his innovative capabilities in the matter of production of goods and services. Their main asset is technical expertise. Due to his expertise, he develops new and improved quality of goods and attempt to succeed in their business.

2. Non-Technical Entrepreneur: Non-technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They do not target or concentrate to change the production technique but to increase the demand for the product by alternative course of actions.

3. Professional Entrepreneur: Professional entrepreneur is a person who is interested in establishing a business but does not have interest in managing or operating it once it is established. He sells out his running business and then starts a new venture with the sale proceeds of the old one. They are considered to be dynamic and keep on conceiving new ideas to develop alternative projects.

C. BASED ON THE MOTIVATION:

1. Pure Entrepreneur: A pure entrepreneur is one who undertakes any activity to satisfy his ego. He is motivated to achieve or prove his excellence. He undertakes an entrepreneurial activity for his personal satisfaction in work or status. He is generally a status conscious person.

2. Induced Entrepreneur: He is the entrepreneur who prepares his sound project and wants to start business but needs support in some forms or other. Most of the induced entrepreneurs enter into business due to financial, technical and several other facilities provided to them by the state agencies to promote entrepreneurship. He is the person who is induced to take the entrepreneurial task due to the policy measures of the government that provides assistance, incentives, concessions and necessary overhead facilities to start a venture.

3. Motivated Entrepreneurs: This is a special class of entrepreneurs. They are motivated by the desire for self-fulfullment. They come into existence because of the possibility of making and marketing some new product for the use of consumers. Their level of motivation becomes more high when their idea provides them a satisfactory amount of profit.

4. Spontaneous Entrepreneur: These are the entrepreneur which has the basic qualities of entrepreneur in him. They are such types of persons who have qualities like boldness, confidence, determination, initiatives etc. They commence their business due to their confidence and talent. They need not to be induced by any other due to their strong conviction.

D. BASED ON OWNERSHIP / CLASSIFICATION ON THE BASIS OF OWNERSHIP: Ownership means the legal entitlement of the business. On this basis, the entrepreneur may be of following types:

1. Founders Entrepreneurs: The word founder itself explains the meaning of this category. They are those individuals who are founder of the business. They are those who conceptualise a business plan and put all their efforts to make the plan successful.

2. Family owned business or second generation operator: They are those entrepreneurs who have inherited the business from their fathers or forefathers. Like Mukesh Ambani and Anil Ambani, sons of Dheerubhai Ambani of Reliance Group.

3. Franchises: ‘Franchises’ has been derived from a French word which means free. It is a technique of doing business where in the patent owner (The Franchiser) licenses his trademark, tried, tested and proven method of doing business to a franchisee in exchange for a recurring payment. Here the franchisee has not conceptulised the business but has invested his money and time in the business. These days, this concept is gaining more and more popularity.

4. Owner Manager: When a person buys a business from the founder and then invests his time and resources in it he is called owner manager. 

E. CLASSIFICATION ON THE BASIS OF STAGE OF DEVELOPMENT: Every business grows with the passage of time. It goes through various stages in its life. On this basis, entrepreneur can be: 

1. First generation Entrepreneur: A first generation entrepreneur is one who starts an individual unit by means of an innovative skill. He is essentially an innovator combining different technologies to produce a marketable product or service.

2. Modern Entrepreneur: A modern entrepreneur is one who undertakes business to satisfy the contemporary demand of the market. He is one who undertakes those ventures which suit the current market needs.

3. Classical Entrepreneur: A classical entrepreneur is called starve type entrepreneur. He aims to maximise the economic return at a level consistent with the survival of the firm with or without the element of growth. 

F. CLASSIFICATION ON THE BASIS OF GROWTH: In Industrial world, the industrial units on this basis are categorized as units with high growth, medium growth and low growth industries, similarly entrepreneurs are classified as under:

1. Growth Entrepreneur: Growth entrepreneurs are those who necessarily take up a high growth industry. These entrepreneur choose such type of industry which has substantial growth prospects.

2. Super Growth Entrepreneur: These are those entrepreneurs who have shown extraordinary growth in the performance of their venture. The growth or performance is measured on the basis of various parameters like liquidity, solvency, profitability. 

In addition, every economy has witnessed by the presence of large number of entrepreneurs. They are also found in social, and cultural activities. They are found among different sectors of society i.e. farmers, artisans, workers, etc. In a study of American Agriculture, Dannof has classified entrepreneurs in the following categories:

1. Innovating Entrepreneur: An entrepreneur who is able to foresee potentiality viable and profitable opportunities through innovation is considered to be an innovative entrepreneur. He is highly motivated and talented and, innovation is his key function. These types of persons are generally aggressive in experimentation and cleverly put possibilities into practice. Peter Drucker also stated that an innovating entrepreneur is one who always searches for change, responds to it and exploit it as an opportunity. Innovating entrepreneurs are very commonly found in developed countries. 

2. Imitative Adoptive Entrepreneur: Imitative entrepreneur adapts a successful adoption. They are risk aversive so they do not try any new idea. They do not innovate anything but imitative techniques and technologies adopted by others. That means an imitative entrepreneur is one who is ready to adopt the successful innovations already inaugurated by innovative entrepreneur. They simply follow the innovators after carefully observing their success and extent of attractiveness of society towards innovation. 

Imitative entrepreneurs are most suitable for the underdeveloped nations because in these nations, people prefer to imitate the technology, knowledge and skill already available in the more advance countries. These entrepreneurs also play an important role in the developing countries also. For example, Indian entrepreneurs are adopting Germany in various lines of products such as automobiles, electronics and infrastructure.

3. Fabian Entrepreneur: These entrepreneurs neither fall in innovative category nor in adoptive one. These are very cautious people. They have neither the will to introduce new changes nor the desire to adopt new methods of productions. They are considered as shy and lazy. They follow the footsteps of their predecessors. They are ready to imitate only when it becomes perfectly clear that failure to do so would result in heavy loss to them. They are dominated more by customs, religion, traditions and past practices and are not ready to take risk at all.

4. Drone Entrepreneur: Drone entrepreneurship is characterised by a refusal to adopt and use opportunities to make changes in production. They blindly follow the traditional methods of production even when there is loss to him. They are not prepared to introduce any change in his method of production, which is already in place. They are conventional in the sense that they stick to conventional products and ideas. Reasons of this attitude could be several. Such as lack of funds, lack of understanding of new development in their field of production etc. They are laggards because they continue in their traditional way and in the long run their product loses its marketability or their business becomes uneconomical so they are pushed out of the market.