Clarence Danhof, on the basis of his study, based on this, he classified entrepreneurs into four types:
Innovative entrepreneurs: An innovative entrepreneur is one who introduces new method of production, discovers new goods, penetrates into new markets. Hence such entrepreneurs come up with something new and avoid the already beaten track.
Imitative entrepreneurs: These entrepreneurs follow the path of innovative entrepreneurs by imitating techniques and technology innovated by others rather than developing own.
Fabian entrepreneurs: Fabian entrepreneurs are very cautious in experimenting any change in their enterprises. They adopt changes only when they feel that their survival is not possible without this change. Hence such type of entrepreneurs avoids changes till maximum possible.
Drone entrepreneurs: These entrepreneurs are not ready to make changes in their existing production methods even after suffering great losses.
Further, Entrepreneurs are classified into different types based on different classifications. Most of them are mentioned below:
Based on the Type of Business:
- Trading Entrepreneur: Trading entrepreneurs undertake the trading activities. They purchase the finished products from the manufacturers and sell them to the customers directly or through different channels. Trading entrepreneurs serve as the middlemen because of the presence of wholesalers, dealers and retailers between manufacturers and customers.
- Manufacturing Entrepreneur: The manufacturing entrepreneurs are manufacturer of products. They identify the needs of the customers and then explore the resources and technology, that is used to manufacture the products. In simple words, manufacturing entrepreneurs convert raw materials into finished products.
- Agricultural Entrepreneur: Entrepreneurs who undertake agricultural pursuits are called agricultural entrepreneurs. They cover a wide range of agricultural activities like cultivation, marketing of agricultural produce, irrigation, mechanization, and technology.
Based on the Use of Technology:
- Technical Entrepreneur: Entrepreneurs who establish and run science and technology-based industries or enterprise are technical entrepreneurs. They use new and innovative ways to produce products in their enterprises.
- Non-Technical Entrepreneur: They are concerned with the use of alternative methods of marketing and distribution strategies to make their business survive in the competitive market rather than science and technology.
Based on Ownership:
- Private Entrepreneur: One who individually set ups a business enterprise. He / she is the sole owner of the enterprise and bears the entire risk involved in it.
Based on Gender:
- Men Entrepreneurs: If an enterprise is owned, managed, and controlled by a man or men, then these men are called ‘men entrepreneurs.’
- Women Entrepreneurs: If an enterprise is owned and controlled by a woman or women having a minimum share of 51 per cent of the capital and giving at least 51 per cent of employment given women in enterprise.
Based on Size and investment of Enterprise:
- Small-Scale Entrepreneur: An entrepreneur who has made investment his enterprise up to Rs 1.00 crore are ‘small-scale entrepreneur.’
- Medium-Scale Entrepreneur: The entrepreneur who has made investment in his plant and machinery for above Rs 1.00 crore but below Rs 5.00 crore are ‘medium-scale entrepreneur.’
- Large-Scale entrepreneur: The entrepreneur who has made investment more than Rs 5.00 crore are ‘large-scale entrepreneur.’