Types of Entrepreneurs

Entrepreneurs can be classified into different types based on common characteristics. Below are the major classifications:

A. Clarence Danhof’s Classification

1. Innovative Entrepreneurs:

1. • Assemble and synthesize information to introduce new combinations of production factors.
   • Characterized by a high level of innovation.
   • Identify opportunities for new ideas, technologies, markets, and organizations.
   • Bring about lifestyle transformations and are instrumental in the progress of their countries.

2. Imitative (Adoptive) Entrepreneurs:

1. • Adopt successful innovations introduced by others.
   • Set up enterprises in the same manner as existing entrepreneurs.
   • Instead of innovating, they imitate technologies and methods.
   • Contribute significantly to the growth of enterprises and entrepreneurial culture in less-developed countries.

3. Fabian Entrepreneurs:

1. • Timid, cautious, and skeptical about adopting or innovating new technologies.
   • Reluctant to adapt to a changing environment, preferring age-old production techniques.
   • Adopt new technologies only when absolutely necessary to avoid business failure.

4. Drone Entrepreneurs:

1. • Conservative and orthodox in outlook.
   • Resist changes and prefer traditional business methods and technology, even at the risk of reduced returns.
   • Refuse to adopt modern innovations despite environmental and societal changes.

B. Arthur H. Cole’s Classification

1. Empirical Entrepreneurs:

1. • Rely on past experiences and trial-and-error methods.
   • Follow traditional practices and are hesitant to adopt new technologies.
   • Common in traditional industries or small-scale businesses.

2. Rational Entrepreneurs:

1. • Make calculated decisions based on economic conditions and market trends.
   • Introduce incremental and evolutionary changes and innovations.

3. Cognitive Entrepreneurs:

1. • Highly knowledgeable about their industry and market.
   • Introduce radical innovations and disruptive changes using expertise and research.
   • Often associated with high-tech industries and pioneering ventures.

C. Classification Based on Ownership

1. Private Entrepreneurs:

1. • Motivated by profit.
   • Reluctant to invest in sectors with limited monetary rewards.

2. Public Entrepreneurs:

1. • Initiatives taken by the government, especially in underdeveloped countries, to establish enterprises in key sectors.

D. Classification Based on the Scale of Enterprise

1. Small-Scale Entrepreneurs:

1. • Common in underdeveloped countries.
   • Limited resources and talents prevent large-scale production or revolutionary changes.

2. Large-Scale Entrepreneurs:

1. • Found in developed countries.
   • Possess financial resources and expertise for initiating and implementing large-scale and innovative projects.

E. Modern Classification

1. Solo Operators:

1. • Entrepreneurs who set up their business individually.

2. Active Partners:

1. • Work collaboratively by pooling resources and efforts.

3. Inventors:

1. • Focus primarily on research and development activities.
   • Known for their creativity in inventing new products, technologies, and production methods.

4. Challengers:

1. • Take on challenges to establish businesses as a mark of personal achievement.

5. Life-Timers:

1. • Consider business as an integral part of their lives, driven by ego satisfaction.