TYPES OF ENTREPRENEURS

MBS MULTITECH BUSINESS SCHOOL

TYPES OF ENTREPRENEURS

Entrepreneurship as an activity has a number of the people involved

They include the following

1. Innovative Entrepreneurs

2. Imitative Entrepreneurs

3. Opportunistic Entrepreneurs

4. Craftsman Entrepreneurs

5. Drone Entrepreneurs

6. Fabian Entrepreneurs

7. Copreneur Entrepreneurs

8. Intra corporate Entrepreneurs

9. Individual Entrepreneurs

10.Institutional Entrepreneurs

INNOVATIVE ENTREPRENEURS

These start businesses by being creative and later combine a variety of

information through assembling a range of factors so as to produce new

products and services. Such people become innovative through the

following means;

Developing a new product or introduction of a new quality of

existing product

Developing a new way of delivering the existing product; It

therefore fetches a new price tag

Developing a new way of informing the consumers about the

new [product e.g. improved ways of advertising like electronic

adverts.

New way of organizing a company e.g. from manual to capital

intensity

Advantages of Innovative Reforms

They bring very new products onto the market

Increase market efficiency i.e. customers have a lot to choose

from

It’s a competitive tool i.e. one being innovative makes him

able to beat rivals.

Creates employment i.e. leads to expansion of the business

hence more employment opportunities

Disadvantages

Destroys existing ideas i.e. some of the ideas may be left out by

being dropped yet they could be developmental with time.

Costly; thinking of a new idea and putting it into practice

involves a lot of expenses through trials and failures

Change skills required i.e. an innovative person must be with a

dynamic thinking which is rare to most people due to

conservatism.

It takes a lot of time to change from an old method to the new

one.

IMITATIVE ENTREPRENEURS

They are at times called adoptive entrepreneurs. These people

copy/adopt successful innovations created by innovative entrepreneurs.

This type of entrepreneurs imitate the technology innovated by others.

This is the most dominant category of entrepreneurs in the

underdeveloped countries.

BY AMBROSE TUBENAWE 0772467417 [email protected] 1

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Advantages

(i). They need and use cheaper techniques since they copy

everything that is already done for them.

(ii). Low costs since there are fewer expenses incurred in the

process of copying the methods and running of the

copied activities.

(iii). Limited managerial skills

(iv). For a manager to run such a business, informal

knowledge is applicable e.g. observation, experience etc

(v). It is applicable and advantageous in less developed

countries

Disadvantages

(i). Low quality products because of errors that are likely to

be made in the adopting process

(ii). High competition

(iii). They face stiff competition from those who are

innovative. This makes them remain on a standstill,

remain small and even be forced out of business.

(iv). Little or no growth

(v). This may be attributed to the stiff competition in the

market.

OPPORTUNISTIC ENTREPRENEURS

Such entrepreneurs constantly work for and exploit many opportunities

that come their way and they tend to change their operations by

changing their size i.e. from small to medium and large companies. They

are therefore dynamic.

They can be growth oriented or independent oriented

Growth oriented persue opportunities to maximise the potential of the

changing size.

Independent entrepreneurs’ main ambition is to work for them-selves.

However this is achieved through stable growth.

Advantages

(i). They exploit opportunities: When an opportunity

surfaces these people use them to start up business

projects.

(ii). Growth oriented: Most opportunistic entrepreneurs

struggle to change the scale of the operations of the

businesses.

(iii). Independence: Whenever they grow and develop,

opportunistic entrepreneurs go away with external

involvements from affecting the parties both sides.

(iv). Build large organisations: They always tend to

explore as many opportunities as possible and this

enables them to expand their businesses very fast.

Disadvantages

(i). They need to use a lot of borrowed money: At their initial

stages of exploiting opportunities small business persons need

to get external financial assistance from financiers. However

the obligations to be made by such borrow may end up blocking

the identified opportunities from being realised.

(ii). High input resources required in terms of equipment and

required raw materials.

(iii). High levels of delegation: Since most of the opportunities

are external, the entrepreneur may delegate most of the

internal activities and this may lead to poor management




(iv). Opportunities in the environment are short lived and are

accompanied by several threats that may not be easy for a

business person to counter e.g. competition and technology.

CRAFTSMAN ENTREPRENEURS

These are less interested in profit and are more concerned with earning

a stable living from their specialist skills. They also get economic benefits

through enriching such possessed unique skills they hold e.g. sportsmen,

singers, actors and actresses etc

Advantages

They are always successful workers because these people concentrate

on developing their talents. Due to high devotion of time and

commitment into such activities, craftsman entrepreneurs have a high

standard of being successful.

(i). They use personal relationship

(ii). In the process of getting economic benefits craftsman

entrepreneurs do not so much invest in their own talents

but they normally have close contacts with financially

stable people, clubs and government.

(iii). Identify wit task: This means that these people are easily

recognized with what they are doing e.g. football

playing

Disadvantages

This type of business venture is for a few people such that those without

such skills cannot venture.

Limited operations

(i). They strively perform their duties only in that field. If any

negative things happen they are likely to lose. They

therefore can’t diversify their fields.

(ii). Narrow education background: Since people devote

most of their time at developing their skills that are

identified form their infancy, they little education skills.

(iii). Such a business only live as long as the person lives and

the talent exists such that in case of death of the person

or the talent flopping it may also collapse.

DRONE ENTREPRENEURS

These entrepreneurs may not be identified as real business people

because they are not interested in taking any risks. They don’t like

change and tent to follow their predecessor’s steps.

Advantages

(i). They are very analytical i.e. they don’t act without first

assessing the effect. In this case they fear problems that come

with changes.

(ii). They are comfortable with the achievements i.e. however much

little benefits one gets, they are motivated.

Disadvantages

(i). They are conservative i.e. they resist change.

(ii). The level of closing the businesses is high since they tend to

operate without changes; they may easily be out competed.

(iii). They fear taking risks and thus lose opportunities

(iv). They tend to use backward methods of production and

management.

FABIAN ENTREPRENEURS




These are very cautious when taking any changes as regard their

business management. They are slow to act when making changes i.e.

they are highly inquisitive by acting.

Advantages

(i). They are less prone to problems or mistakes

(ii). Fewer costs are incurred since they fear mistakes

Disadvantages

(i). They tend to fail to meet time deadlines

(ii). Face stiff competition

(iii). Limited market offers

(iv). They are lazy

(v). There is slow growth in the size of business

Copreneur entrepreneurs

These co-own and manage their businesses with spouses ie the husband

and wife business.

Advantages

(i). There is mutual understanding decision making is easier

Disadvantages

(ii). Limited scale of ideas for expansion and growth

(iii). Sudden misunderstandings may erupt

INTRA-CORPORATE ENTREPRENEURS

These posses’ entereprenual skills but operate with in an organisational

setting but they don’t own it.

Advantages

(i). They enjoy he reputation of the mother firm

(ii). There are reduce costs of establishment

(iii). They are normally with the intellectual skills

Disadvantages

(i). Suffering of the mother firm may affect him so much

INDIVIDUAL ENTREPRENEURS

They start and own their own business. They therefore manage

themselves. They are termed as sole entrepreneurs.

INSTITUTIONAL ENTREPRENEURS

One stars the business alone but when he succeeds he joins hands with

other successful individual people to form institutions

Advantages

(ii). They enjoy advantages of large scale operations e.g.

widen market share profits, discount

(iii). It’s a competitive tool for survival

Disadvantages

(i). Independence is wished away




(ii). Decision making is hard

(iii). Bureaucracy is common

(iv). External hindrance emerge e.g. taxation

OTHER TYPES

Second and first generation entrepreneurs

Visionary entrepreneurs



TYPES OF ENTREPRENEURS

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