Classification of Entrepreneurs
Session 7: Classification of Entrepreneurs
Total Session Time: 120 minutes +2hours of Tutorial
Prerequisites
Learning Tasks
By the end of this session students are expected to be able to:
Resources Needed:
SESSION OVERVIEW
Activity/
Step Time Content
Method
1 05 minutes Presentation Introduction, Learning Tasks
Presentation
2 15 minutes Definition of Entrepreneur and Intrapreneur
Buzzing
Types of Entrepreneur
3 30 minutes Presentation
Presentation Roles of Entrepreneur
4 35 minutes
Brainstorming
Factors that Determine a Person to Become an
Presentation
5 25 minutes Entrepreneur
7 05 minutes Presentation Key Points
8 05 minutes Presentation Evaluation
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SESSION CONTENTS
STEP 1: Presentation of Session Title and Learning Tasks (5 minutes)
READ or ASK students to read the learning tasks and clarify
ASK students if they have any questions before continuing.
STEP 2: Definition of Entrepreneur and intrapreneur (15 minutes)
Activity: Buzzing (5 minutes)
ASK students to pair up and buzz on the following question for 2 minutes
ALLOW few pairs to respond and let other pairs to add on points not mentioned
WRITE their response on the flip chart/board
CLARIFY and SUMMARIZE by using the content below
o A person who explores entrepreneurial opportunities, introduces new goods and
services and explores market through organized efforts that previously had not existed
o A catalyst for economic change that uses purposeful searching, careful planning and
sound judgment when carrying out the entrepreneurial process.
o A person who is uniquely optimistic and committed, and works creatively to establish
new resources or endow old ones with a new capacity
o A person who starts entrepreneurial opportunities, introduces new goods and services
in existing organization
STEP 3: Types of entrepreneurs (30 minutes)
Classification of entrepreneurships is done on the basis of:
Depending on the type of business, entrepreneurs can be categories as:
o Business entrepreneur; convert ideas into reality, deal with both manufacturing and
trading aspect of business
o Trading entrepreneurs: undertake trading activities, concerned with marketing
o Industrial entrepreneurs: undertake manufacturing activities only, new product
development
o Corporate entrepreneurs: interested in management as part of the organization,
exceptional organizing, coordinating skills to manage a corporate undertaking
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o Agricultural entrepreneur: production and marketing of agricultural inputs and
outputs
o Technical entrepreneur: production oriented, possess innovative skills in
manufacturing, quality control etc.
o Non-technical entrepreneur: develops marketing, distribution facilities, and strategies
o Professional entrepreneur: uses the proceeds from sale of one business to start
another one. Brimming with ideas to start new venture
o Pure entrepreneur: psychological and economic rewards motivate him/her
o Induced entrepreneur: incentives, concessions, benefits offered by government for
entrepreneurs motivate him/her.
o Motivated entrepreneur: sense of achievement and fulfillment motivate him/her
o Spontaneous entrepreneur: born entrepreneur with inborn traits of confidence, vision
and initiative
o Growth entrepreneur: one who enters a sector with a high growth rate; is a positive
thinker
o Super growth entrepreneur: one who enters a business and shows quick, steep and
upward growth curve
o First generation entrepreneur: innovator, risk taker, among the first in the families to
enter business
o Modern entrepreneur: who considers feasibility of business, which can adapt to
change and dynamic market
o Classical entrepreneur: one who gives more importance to consistent returns than to
growth; concerned about customer and marketing needs
o Area: rural and urban entrepreneur
o Gender/age: men and women entrepreneur
o Scale: small and large scale entrepreneur
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STEP 4: Roles of Entrepreneur (35minutes)
Activity: Brainstorming (5 minutes)
Ask students to brainstorm on the following question:
ALLOW few students to respond
WRITE their responses on the flip chart/ board
CLARIFY and SUMMARISE by using the content below
employment, create goods and services, generate revenue impacting on the economy‘s
level of national income, and hence potential for economic growth.
o Conceptualization
All business ventures begin with the conceptualization of an idea.
Most entrepreneurs identify a need in the market i.e. a service that is not being
provided or a product that does not exist
If the product or service already exist, then ideas to make improvements may be
conceptualized
o Research
The entrepreneur is a smart/perceptive investor and takes calculated risks
Before investing money in a business venture a market research must therefore be
done to ascertain the extent of the need for the product or service. This helps to
minimize losses
A market research involves gathering information about a potential market to help
an investor make decisions about entering that market.
o Identification of resources
If the market research is favorable the entrepreneur must identify the necessary
resources to operate business.
The resources required are land, labour and capital.
Land refers to location or place used to set up a business.
This may be bought, rented or family home.
duties.
equipment.
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o Creation of a business plan
Preparing a business plan is very important before the start of a business.
This will help the business to ascertain whether or not the business will be
profitable.
A business plan outlines the goals of a business and the strategies that will be
employed to achieve them.
Usually financial institutions require that a business plan be presented when a loan
is requested for business investment.
o Acquisition of funds
There are several ways of acquiring funds to start a business.
businesses once their business plans are deemed workable.
no repayment cost and a more flexible repayment schedule.
o Operation of a business
A business must be efficiently operated to ensure high quality goods and service.
This is important to keep existing customers and for business growth.
Many companies employ an operation manager to design and oversee its
operations.
o The central role of entrepreneur in all economic activity
It is the entrepreneur who:
Undertakes the risk of the enterprise in search of profit and
Seeks opportunities to profit by satisfying as yet unsatisfied needs
Seek disequilibrium–a gap between the wants and needs of customers and the
products and services that are currently available.
Brings together the factors of production necessary to produce, offer and sell
desired products and services.
Invest and risk their money and other people's money–to produce a product or
service that can be sold at a profit.
Are skilled at selling against the competition by creating perceptions of difference
and uniqueness in their products and services.
Continually seek out customer needs that the competition is not satisfying and
Find ways to offer their products and services in such a way that what they're
offering is more attractive than anything else available
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STEP 5: Factors that Determine a Person to Become an Entrepreneur (25
minutes)
Here are several factors that contribute to the development of entrepreneurship:
to ensure their financial security to spend more time with family and friends
as true heroes by awarding them a special status, especially because of achievements,
including material, which makes them often as models to follow
which the largest share identify business opportunities, and they contribute to the
development of entrepreneurship.
attract many people to develop business to achieve significant gains.
businesses to large company‘s competition through lower costs recorded in a small
business.
information from various areas, which contributes to increased chances of finding new
ideas for new businesses.
business, not only within the borders of a country but also beyond, significantly
increasing the chances of obtaining additional profits.
STEP 6: Key Points (5 minutes)
and explores market through organized efforts that previously had not existed
o Type of business
o Use of technology
o Motivation
o Growth
o Stages in development
o Others
o Conceptualization
o Research
o Identification of resources
o Creation of a business plan
o Acquisition of funds
o Operation of a business
o Independent lifestyle
o Successful entrepreneurs as role models
o Demographic factors
o Increasing the share of services in total GDP
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o Globalization
o Internet development
o Development of new technology
STEP 7: Evaluation (5 minutes)
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References
Buskirk, R. H (1994). The Entrepreneurs Handbook: Premier Entrepreneur Programs, Inc.
Denver, Co.
Charantimath, P. M (2006) Entrepreneurship Development Small Business Enterprises:
Delhi, India: Pearson Education,
Hisrich, R.D., Peters, M.P., & Shepherd, D.A. (2005). Entrepreneurship. (6th Ed.) Boston:
McGraw-Hill.
Kuratko, D.F., & Hodgetts, R.M. (2007). Entrepreneurship: Theory, Process & Practice. (7th
Ed.) USA: Thomson
Roy, R. (2011, 2008). Entrepreneurship. 2nd Ed. Oxford: Oxford University Press.
Stokes, D. & Wilson, N. (2002). Small Business Management and Entrepreneurship. (5th
Ed.) London: High Holborn House.
Zimmerer, T. W. & Scarborough N. M. (2008) Essentials of Entrepreneurship and Small
Business Management. (5th Ed) New Jersey: Pearson Education International
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