The entrepreneurs falling in this category are those who set in motion a powerful sequence of development, growing, expanding and diversification oriented. It should be observed that innovative entrepreneurs initiate their action only when a certain level of development is already achieved and people anticipating a further change and improvement. Terms of Service 7. Industrial entrepreneur is an entrepreneur who is into manufacturing of a product. It is a form of business organization which is registered under some statute or act. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. Business. Here’s a Quick Way to classify a company on the basic of Liability . Lateral or allied combination: Lateral combination means that the combination where two or more business combines not for the achievement of the main objectives of the business. Like, every country has its own laws regarding number of partners in a firm. However, they are equally likely to setup innovative or imitative business ventures. Like Mukesh Ambani and Anil Ambani sons of Dhirubhai Ambani of the Reliance Group now split into two; Reliance – Reliance Industries Limited and Reliance – Anil Dhirubhai Ambani Group. If they want to introduce new things or take important decisions, they consider all factors, pros and cons and think twice before introducing a new idea or taking any decision. Another classification of entrepreneurs from the development angle has been attempted and these have been described briefly. The ordinary producers repeat the same production for years whereas innovators produce new goods in new ways and enter into new markets by undertaking new methods of organisation. Large, medium and small scale industries, generating electricity and construction work etc. Clarence Danhof 6. Example – Readymade garments, confectionaries, etc. Copyright. They raise the necessary capital and employ experts in financial, legal, marketing and other areas of business. Agricultural entrepreneurs are those entrepreneurs who undertake business related to agricultural activities. This personality often will cause them to build their business around their own personal brand. According to some studies, on the basis of their motives, entrepreneurs have been classified into three categories: i. He never explores opportunities nor prepared to take any risk. The answer to such a question will remain in controversy. These are the ones who undertake those ventures which go well along with the changing demand in the market. Privacy Policy He is the citizen of another country who sets up his unit in India. The consolidation affects a greater loss of individuality on the part of their members. The only drive that pushes them is the desire to achieve something in life the desire to make a mark in society, the desire to prove their excellence. • Basis of business classification, using examples to illustrate the classification But later on Schumpeter also gave definition based on functions of an entrepreneur. When their product marketability and operations become uneconomical they are pushed out of the market. Thus, according to his view, entrepreneurs are broadly classified into the following 4 types: An innovating entrepreneur is one who introduces new products, inaugurates new method or process of production, discovers new market and re-organises the enterprise. Type of Business 4. In some cases newly married bridegrooms start business with the financial support of their in-laws. He is essentially an innovator combining different technologies to produce a marketable product or service. These are the ones who develop new and improved quality of goods because of their craftsmanship. The economic development of an economy depends upon the nature of entrepreneur. They concentrate more on production than marketing.


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