At present not only the economic social conditions of the countries are different, approach, thoughts, and perceptions of people towards business are also quite different. In such situations, types of entrepreneurship also certainly differ.
Types of Entrepreneurship
The types of entrepreneurship may be Classified on the following points:
1. Private Entrepreneurship
When an individual or group of individuals start a business, takes risks and initiates innovations in the private sector, it is called private entrepreneurship.
The main object of such entrepreneurs is the earn profits.
The development of such entrepreneurs has been possible, due to private enterprise.
Private Entrepreneurship is popular in England, America, Germany, Japan, and France, etc.
2. Government or Public Entrepreneurship
When the government starts business enterprises in government or public sector for public welfare and takes risks related to them, it is known as government or public entrepreneurship.
Public entrepreneurship has developed fast in India also, after independence.
3. Joint Entrepreneurship
When private and government ownership is jointly involved in any enterprise or business, it is called joint Entrepreneurship.
Following are the salient features of such Entrepreneurship:
- This is the mixed form of private and government ownership.
- This system provides opportunities for investment to the entrepreneurs of the private sector, but the main role is of the governments, meaning thereby that the government makes an investment, jointly with private entrepreneurs and public in certain preparation.
In India, joint entrepreneurship has been adopted, due to various reasons, like achieving the goals of plans, check the concentration of economic power, encouraging new entrepreneurs, and for Industrial development of backward areas, etc.
4. Cooperative Entrepreneurship
When several people collectively establish Enterprises, bear risks and carry out innovations on the Cooperative basis, it is known as Cooperative entrepreneurship.
Then the main object of such entrepreneurship is to the encourage spirit of self Independence and mutual welfare among the citizens.
In India, Several Industries like the sugar industry, textile industry, agricultural products processing units, dairy industry, small and cottage industries, etc. have been established, under corporate entrepreneurship.
5. Traditional or Evolutionary Entrepreneurship
When the production in any enterprise is on the basis of traditional methods, the pace of changes is very slow and attention is not paid on research and development activities, it is known as traditional entrepreneurship.
The main features of such types of entrepreneurship are as follows:
- The traditional entrepreneurs believe in the natural pace of development.
- They do not like to take excessive risks.
- They pay attention to innovations.
- Such entrepreneurs do not prefer having any new thing or installing new machinery etc.
- Such entrepreneurs have the tendency to enter only into existing industries.
In India, mostly these types of entrepreneurship are evident.
6. Modern or Revolutionary Entrepreneurship
In contrast to traditional entrepreneurship, when the entrepreneurs formulate schemes involving high risks, take brave decisions and use new techniques of production and expand the enterprise with fast speed, such entrepreneurship is called Revolutionary entrepreneurship.
In the modern age, most of the educated youth believe in Revolutionary entrepreneurship.
Some countries like Russia, China, and Eastern Europe, etc. have the highest level of their Industrial Development only through Revolutionary entrepreneurship.
7. Centralized Entrepreneurship
When most of the Enterprises tend to be established in one place or area.
Due to the availability of basic infrastructure facilities, like water, electricity, roads, means of transportation, communication. Favorable location and due to the establishment of earlier units at the place, etc.
Such Entrepreneurship is called centralized entrepreneurship.
In other words, when even the new entrepreneurs also prefer to establish the industries or doing some other works in the industrially developed areas, to take advantage of available facilities, this is known as centralized entrepreneurship.
From the viewpoint of economics, the profitability of centralized entrepreneurship is only up to a certain extent.
Thereafter, several problems and obstacles arise.
8. Decentralized Entrepreneurship
When the entrepreneurs establish enterprises at various places, parts, and areas of the country, that is known as decentralized entrepreneurship.
Such types of entrepreneurship aim at planned development, development of backward areas, Employment generation and equitable distribution of income and wealth.
The governments provide various facilities, subsidies, and motivations for encouraging decentralized entrepreneurship.
As a result, the overall development of society is facilitated.
9. Small Entrepreneurship
The Enterprise in which the production system is simple, capital investment, number of workers and the size of the enterprise is small, which is known as the small entrepreneurship.
Following are the features of small entrepreneurship:
- Small entrepreneurship is labour intensive.
- This is the important base of decentralization of economic power, self-reliance, employment, balanced regional development and proper use of local resources.
- Small entrepreneurship is used for the operation of rural and small industries. Development of rural and cottage industries in the country is facilitated by small Entrepreneurship and local people are the benefit of better employment opportunities.
10. Medium Entrepreneurship
There is a point where an entrepreneur doesn’t have too much finance for the company. Or maybe a growing company called medium entrepreneurship.
11. Large Entrepreneurship
As against small entrepreneurship, when the production system is complicated, a higher amount of capital is invested, the number of workers is more, size of the enterprise is big, production is in large quantity, modern and machinery and techniques are used and Enterprises is operated by professional manager, that is called large entrepreneurship.
In India, Tata Birla, Dalmiya, Bangar, Sarabhai, Ambani, etc. are large entrepreneurs.
Various basic of such types of entrepreneurship, like Iron and Steel Industries, engineering goods, chemical Industries, electrical appliances Industries, cement factories, coal best plants, etc.
Large entrepreneurship, on the one side, provides employment to a large number of people, but on the other side, it also encourages monopolies and other evils, which are not conducive for society and economy.
12. Routine Entrepreneurship
Routine entrepreneurship implies managerial functions, like planning, organization, direction, motivation, and control, etc. Which are essential parts of the day to day activities?
In other words, it includes successful management of the enterprise, through suitable planning, decisions, and programs, as the main functions.
Routine Entrepreneurship aims at the operation of the enterprise at the lowest cost and with the lowest risks.
13. New Type Entrepreneurship
The new types of entrepreneurship mean innovative or creative entrepreneurship.
Such types of entrepreneurship include creation and implementations of new ideas, a search for new opportunities, use of new techniques and machinery, and production of new commodities, etc.
14. Individual Entrepreneurship
In other words, the Entrepreneur who performs the following functions is called individual leadership:
- Taking all decisions regarding the production and distribution of commodities.
- Leadership and control of the enterprise are only in the hands of an individual.
Such types of entrepreneurship are only possible in small industries and not in large industries.
15. Group Entrepreneurship
Such entrepreneurs are called ‘promoters’ also. In such entrepreneurship, leadership is transferred from one individual to the organized group of experts. So it is called group entrepreneurship.
Following are the salient features of group entrepreneurship:
- Entrepreneurship is based on the ‘technical composition’ of society.
- This entrepreneurship has emerged, due to various reasons, like production in high volume, the division of labour, mechanization, modernization, etc.
- The person to whom leadership is transferred is usually not the owners of the enterprise.
Group leadership contributes to the fast pace of industrial development.
But, such entrepreneurs do not invest capital in backward areas, because they do not visualize any prospects of returns in such areas, due to lack of infrastructural facilities.
16. Innovative Entrepreneurship
Innovative entrepreneurship implies quick testing of innovations and making efforts to give practical shape to attractive possibilities.
Innovations are of various types:
- Innovations reducing costs, like the presentation of new production methods, the use of new sources of raw material, and adopting new patterns of organization.
- Innovation generating demand, like the presentation of the new commodity or improved variety of the commodity and entry into new markets.
The entrepreneur adopting aforesaid types of innovations for the first time is called as the entrepreneur with ‘innovative entrepreneurship‘.
17. Imitative Entrepreneurship
Imitative entrepreneurship is that in which the innovations adopted by successful entrepreneurs are followed.
18. Fabian Entrepreneurship
This is entrepreneurship, which waits for favorable and opportunities for implementing the innovations.
The person implements them only when he is sure that there is no loss in implementing them.
19. Drone Entrepreneurship
This is the entrepreneurship which shows no interest in changing any production techniques, etc. and in deducting any profitable innovation, etc.
Although other entrepreneurs might be subsequently gaining by adopting innovations and changes.
20. Urban and Rural Entrepreneurship
When the Development of entrepreneurship is Limited only to cities, it is known as urban entrepreneurship.
Such types of entrepreneurship cause various problems, like pollution, overcrowding, slum areas, social offenses, and housing problems, etc.
When the Entrepreneurship is developed in small villages and towns, it is known as rural entrepreneurship, which has several advantages, like poverty eradication, economic development of villages and equitable distribution of wealth, etc.
21. Systematic Entrepreneurship
Systematic entrepreneurship means such entrepreneurship where the innovative system is carried out by the Entrepreneurs and they perform the following functions:
- The search for new customers, new markets and new opportunities.
- They comply with systematic principles.
- They use systematic research technologies.
20 Types of Entrepreneurship (Explained)