Who is an Entrepreneur? 

People who create and operate their own businesses on a risky basis are called Entrepreneurs. They are inspired by originality, creativity, and the desire to realise their own ideas. To solve challenges and generate value for their clients, they are frequently prepared to take chances and think creatively. Entrepreneurs have no fear of failure because they see it as a chance to grow and achieve later. They are essential to the economy because they provide jobs and support expansion. They are continuously looking for chances and trying to come up with better and newer things. Entrepreneurs are able to realise their goals and have a big effect because of their persistence and dedication.

Entrepreneurs have a strong feeling of purpose and passion for what they do in addition to their vision and drive. They are devoted to the prosperity of their company and will go to any effort to fulfill their goal. Although entrepreneurship is not for the weak of the heart, individuals who are ready to take on the challenge may gain great rewards on a personal and financial level. They not only add value to the economy but also leave a lasting legacy and benefit society.

Types of Entrepreneurs

Entrepreneurs mostly don’t have the same abilities. After examining American agriculture, Clarence H. became aware of this fact and divided entrepreneurs into four types. These four types of entrepreneurs are as follows:

1. Innovating Entrepreneurs:

Entrepreneurs that are innovative have the capacity to think beyond the box and introduce fresh, original concepts to the market. They are motivated by a desire to have a good influence and come up with original, non-traditional solutions to challenges. Innovative businessmen are not scared to question the existing system and take chances in order to realise their vision. They are constantly looking for methods to enhance their goods and services since they are passionate about developing something better and fresh. They are always trying and improving, embracing change, and utilising new tools and strategies. These businessmen frequently develop new markets and make disruptive changes to their businesses as a consequence of their inventive attitude.

Simply put, these are the innovators who constantly push themselves to think creatively and attempt to challenge the market. They innovate by launching new goods, devising innovative production techniques, discovering fresh markets, or re-designing the business. Innovative business owners use strategic thinking to place themselves in a competitive sector. The capacity to plan is essential for creative business entrepreneurs. To succeed, an entrepreneur must operate logically and realistically. Original ideas come from strategic thinkers. In order to put their ideas into action, they develop an implementation strategy that contains the necessary tools. The ability to see how their ideas fit into a bigger perspective is a characteristic of innovative entrepreneurs. Due to the fact that these entrepreneurs can only function if a particular level of growth has been accomplished in a country and people desire modifications and improvements to their present goods and services, innovating entrepreneurship is expected in developed countries.

Example: Elon Musk

• Tesla: Revolutionized the electric vehicle market by making electric cars appealing to the mass market.
• SpaceX: Pioneered private space travel and reusable rockets, drastically reducing the cost of space missions.
• Neuralink and The Boring Company: Innovating in neural technology and tunneling technologies.

2. Imitative Entrepreneurs:

Imitative entrepreneurs are those who follow the successful models and strategies of other successful businesses. Rather than taking risks and innovating, they look to what has worked in the past and try to replicate it in their own business. They may copy a product, a business model, a marketing strategy, or a combination of these elements. Imitative entrepreneurs often focus on improving the efficiency and scalability of existing ideas rather than generating new ones. While they may not have the same level of creativity or risk-taking as innovative entrepreneurs, they still play an important role in the economy by taking existing ideas and making them accessible to a wider audience. Additionally, they may bring a new perspective and make modifications that improve upon the original idea. While not as groundbreaking as innovative entrepreneurship, imitative entrepreneurship can still be a valuable and viable path for those looking to start a business.

Such entrepreneurs are typically found in developing countries where they mimic innovation in terms of production elements that are already widespread in developed nations. Compared to innovative entrepreneurs, these entrepreneurs experience less potential risks. 

Example: Sam Walton

• Walmart: Though not the first to open a discount store, Sam Walton improved the business model with a focus on rural areas, superior logistics, and supply chain management. His ability to imitate and enhance existing retail strategies led to Walmart becoming a global retail giant.

3. Fabian Entrepreneurs:

Fabian Entrepreneurs are those that grow their companies gradually and deliberately. They concentrate on establishing a solid basis for their endeavours and moderate, steady progress. Fabian entrepreneurs place a higher priority on stability and sustainability than quick development, in contrast to creative entrepreneurs who could take risks to accomplish their goals. To make sure their firms can last and prosper in the long run, they carefully examine market circumstances, evaluate prospects, and make thoughtful decisions. Fabian entrepreneurs are commonly described as being patient and determined, having a long-term outlook, and having the readiness to put in the effort necessary to achieve their objectives.

Such entrepreneurs take considerable precautions when implementing any type of transformation in their company. These professionals lack the motivation to apply new manufacturing techniques and therefore are afraid, unproductive, and unambitious. They only replicate anything whenever they are absolutely sure failing to act would lead to financial damage. These entrepreneurs have the following characteristics:

• Accept and stick to traditional methods.
• Work for a family-owned business.
• Careful.
• Display risk-aversion.
• A clear, strict, and basic strategy.

Example: IBM

• Personal Computers: IBM was initially slow to enter the personal computer market. They waited until the market was well-established by companies like Apple before launching the IBM PC. Despite being late entrants, they eventually succeeded by leveraging their strong brand and existing business relationships.

Also Read:

What are the Different Types of Entrepreneurs?

4. Drone Entrepreneurs:

A “drone” is defined by the definition as “an individual who depends on the efforts of all others.” Drone business owners reject chances that come into a way to replicate or take advantage of them. These business owners are indeed quite traditional; they never feel uncomfortable using their outdated manufacturing methods, despite the fact that both the surroundings and community have experienced significant changes, while also being even willing to accept the likelihood of losing their company. They are underperformers because they stick to their existing norms and oppose change. These entrepreneurs will not modify their methods, even if that means losing customers. Thus, no matter what, these individuals simply would not evolve. 

The circumstances in underdeveloped countries are less beneficial for the formation of entrepreneurs, especially creative businesses, due to a lack of trained workers and an absence of suitable facilities. Non-innovative entrepreneurs, like the Imitative, Fabians, and Drones are frequently observed in emerging and underdeveloped countries. Entrepreneurs in these areas mimic the inventions created by innovative entrepreneurs in wealthy nations rather than creating their own.

Example: Kodak

• Digital Photography: Kodak was a pioneer in the early development of digital photography technology. However, they were slow to transition from film to digital photography because they were concerned about cannibalizing their film business. This resistance to change ultimately led to their decline as digital photography became the dominant technology.

Also Read:

Importance of Entrepreneurship

Entrepreneurship and its Characteristics

Difference between Entrepreneur and Entrepreneurship

Functions of an Entrepreneur

Types of Entrepreneurs – FAQs

What are the main types of entrepreneurs?

The main types of entrepreneurs are Innovating Entrepreneurs, Imitative Entrepreneurs, Fabian Entrepreneurs, and Drone Entrepreneurs.

Why is it important to understand different types of entrepreneurs?

Understanding different types of entrepreneurs helps in recognizing the diverse approaches to business and innovation. It provides insights into how different entrepreneurial strategies can impact the success and evolution of businesses and industries.

Can an entrepreneur change their type over time?

Yes, an entrepreneur can change their approach over time. For example, a Fabian entrepreneur might become more innovative if they recognize the need for significant change in their industry. Similarly, an imitative entrepreneur might develop new innovations as they gain more experience and resources.

Are there other types of entrepreneurs besides these four?

Yes, there are many ways to categorize entrepreneurs based on various criteria, such as lifestyle entrepreneurs, social entrepreneurs, serial entrepreneurs, and more. The four types mentioned are specific to their approach to innovation and change.

What skills are essential for each type of entrepreneur?

• Innovative Entrepreneurs: Creativity, risk-taking, visionary thinking, technical skills.
• Imitative Entrepreneurs: Analytical skills, market research, adaptability, operational efficiency.
• Fabian Entrepreneurs: Risk management, patience, strong business fundamentals, strategic planning.
• Drone Entrepreneurs: Traditional business skills, focus on operational consistency, customer loyalty.