ENTREPRENEURSHIP HANDOUT 8.

Brings social benefits to the people-

“The entrepreneur always searches for entrepreneurs pay taxes for every
change, responds to it, and exploits it as an product or services sold in the market.
opportunity” 9. Utilizes and mobilizes indigenous
– Peter Drucker
resources
Contributor Definition 10. Provides more alternatives for
Knight Having profits from consumers
bearing uncertainty The word ‘entrepreneur' is derived
and risk from the French word ‘entreprendre’
Cole Purposeful activity which means ‘to undertake’.
to initiate ad CHARACTERISTICS OF AN
develop a profit- ENTREPRENEUR
oriented business
1. Calculated Risk-taker
Casson Decision and
managements about 2. Innovator
the coordination of 3. Organizer
scarce resources 4. Creative
Hisrich and Brush Process of creating 5. Achievement Motivated
something new with 6. Technically Competent
value 7. Self-confident
Dyck and Neubert Conceiving an
8. Socially Responsible
opportunity to offer
new or improved 9. Optimistic
goods 10. Equipped with Capability to drive

CONTRIBUTIONS OF TYPES OF ENTREPRENEUR

ENTREPRENEURSHIP TO THE
ECONOMY AND SOCIETY
1. Creates employment- when
entrepreneurs put up their business,
they employ people who possess
different competencies.
2. Develops new markets –
entrepreneurs are opportunity-seekers,
creative and resourceful.
3. Introduces innovation-entrepreneurs
innovate.
4. Generates new sources of materials
–entrepreneurs are always in constant
search for better and cheaper sources
of materials they need.
5. Stimulates investment interest-
when entrepreneurs engage in new
business, it stirs curiosity for other
people to invest in the business
6. Improves the quality of life-the new
products and services developed by
the entrepreneur contribute to the
increase in the personal benefit and
convenience of people in society.
7. Serves as role models- entrepreneurs
are people to be emulated by younger
generations.
According to the Type of Business
Business entrepreneur: Business
entrepreneurs are those entrepreneurs who
conceive the idea of a new product or service
and then translate their ideas into reality.
Trading entrepreneur: As the very name
indicates trading entrepreneur is concerned
with trading activities and not
manufacturing.
Industrial entrepreneur: As the very name
indicates, an industrial entrepreneur is one
who sets up an industrial unit.
Corporate entrepreneur: Corporate
entrepreneur is the one who plans, develops
and manages a corporate body.
Agricultural entrepreneur: is the one who is
engaged in the agricultural activities.
According to Motivation
Pure entrepreneur: is the one who may or
may not possess an aptitude for
entrepreneurship but is tempted by the
monetary rewards or profits to be earned
from the business venture.
Induced entrepreneur: Induced entrepreneur is
attracted by the various incentives, subsidies and
facilities offered by the government
According to the Use of Technology
Technical entrepreneur: The strength of a
technical entrepreneur is in his skill in production
techniques. He concentrates more on production
than on marketing.
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.
Professional entrepreneur: Professional
entrepreneur means an entrepreneur who is
interested in floating a business but does not want to
manage or operate it.
According to Capital ownership
Private entrepreneur: When an individual or
a group of individuals set up an enterprise,
arrange finance, bear the risk and adopt the
latest techniques in the business with the
intention to earn profits, he or the group is
called as private entrepreneur/entrepreneurs.
State entrepreneur: As the name indicates,
state entrepreneur means the trading or
industrial venture undertaken by the state or
the government itself.
Joint entrepreneur: Joint entrepreneur
means the combination of private
entrepreneur and state entrepreneur who join
hands.

According to stages of Development According to Gender and Age

 Man entrepreneur
First generation entrepreneur: are those  Woman entrepreneur
entrepreneurs who do not possess any  Young entrepreneur
entrepreneurial background.  Old entrepreneur
Second generation entrepreneur: are those  Middle-aged entrepreneur
entrepreneurs who inherit the family business firms
and pass it from one generation to another. According to Area
Classical entrepreneur: is a stereotype entrepreneur
whose aim is to maximize his economic returns at a  Urban entrepreneur
level consistent with the survival of the unit but with  Rural entrepreneur
or without an element of growth.

According to its Classification

Innovative entrepreneur: are generally aggressive

and possess the art of cleverly putting the attractive
possibilities into practice.
Imitative entrepreneurs: are characterised by
readiness to adopt successful innovations
inaugurated by successful innovating entrepreneurs.
Fabian entrepreneur are cautions and skeptical in
experimenting
Drone entrepreneur: Drone entrepreneurs are
characterised by a refusal to adopt opportunities to
make changes in production formulae even at the
cost of severely reduced returns.