Entrepreneurs are found in various types of the business occupation of varying sizes. We may broadly classify them as follows.
I) According to the type of Business:
1. Business Entrepreneurs: They are Entrepreneur: individuals who conceive an idea for a new product or service and then create a business to materialize theirs into reality. They tap both production and marketing resources in their search to develop a new business opportunity.
2. Trading Entrepreneurs: He undertakes trading activities and is not concerned with the manufacturing work. He identifies the potential market, stimulates demand for his product line and creates a desire and interest among buyers to go in for his product.
3. Industrial Entrepreneurs: He is essentially a manufacturer who identifies the potential needs of customers and tailors products or services to meet the marketing needs, He is a product-oriented man who starts in an industrial unit because of the possibility of making some new product.
II) According to the use of Technology:
1. Technical Entrepreneurs: He is essentially an entrepreneur of “craftsman type”. He develops a new and improved quality of goods because of his craftsmanship. He concentrates more on production rather marketing.
2. Non-Technical Entrepreneurs: Non-Technical entrepreneurs are those who are not concerned with the technical aspects of the product in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business.
3. Professional Entrepreneur: a Professional entrepreneur is a person who is interested in establishing a business but does not have an interest in managing or operating it once it is established. A professional entrepreneur sells out the running business and starts another venture with the sale proceeds. Such an entrepreneur is dynamic and he conceives new ideas to develop alternative projects.
III) According to Motivation:
1. Pure Entrepreneur: A pure entrepreneur is an individual who is motivated by psychological and economic rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego or status.
2. Induced Entrepreneur: This entrepreneur is one who is induced to take upon entrepreneurial task due to the policy measures of the government that provides assistance, incentives concession and necessary overhead facilities to start a venture.
3. Motivated Entrepreneur: New entrepreneur is motivated by the desire for self – fulfillment. They come into being because of the possibility of making and marketing some new products for the use of consumers. If the product is developed to a saleable stage, the entrepreneur is further motivated by reward in terms of profit.
4. Spontaneous Entrepreneurs: These entrepreneurs start their business out of their natural talents. They are persons with initiative boldness and confidence in their ability which motivate them to undertake entrepreneur activity. Such an entrepreneur has a strong conviction and confidence in their ability.
IV) According to growth:
1. Growth Entrepreneur: He necessarily takes up a high growth industry and chooses an industry which has sustained growth aspects.
2. Super Growth Entrepreneur: This category of entrepreneurs are those who have shown enormous growth of performance in their venture. The growth performance is identified by the liquidity of funds, profitability, and gearing .
1. Innovating Entrepreneur: This type of entrepreneurs introduces new goods, inaugurates new method enterprise. It is important to note that such entrepreneurs can work only when a certain level of development is already achieved and people look forward to change and improvement.
2. Imitative Entrepreneur: These entrepreneurs adopt the methods and techniques already successfully executed by innovating entrepreneurs. They di not innovate the changes themselves, they only imitate techniques and technology innovated by others. Such types entrepreneurs are particularly suitable for the under developed regions for bringing a mushroom drive of imitation of new combinations of factors of production already available in developed regions.
3. Fabian Entrepreneurs: These are characterized by very great caution and skepticism in an experimenting any change in their enterprises. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position in the enterprise.
4. Drone Entrepreneurs: These are characterized by a refusal to adopt opportunities to make changes in production form losses but they are not ready to make changes in their existing production methods.