Types of Entrepreneurs and Their Key Differences

If you are looking at the world of business in India and worldwide, you will find that there are different types of entrepreneurs. While some entrepreneurs are visionaries who transform the entire industry, others are innovators, and a few defy all odds and emerge triumphant.

As a business owner or an aspiring entrepreneur, having a good understanding of the mindset of the best type of entrepreneurs will help you do well in your own business. In this blog, we discuss the different types of entrepreneurs and the key differences between them. But first, let us understand who an entrepreneur is.

Who is an entrepreneur?

In simple words, an entrepreneur is an individual who starts and runs his own business, takes care of the daily operations, and is responsible for the business’ profits and losses. Generally, the business idea is their own, or they are inspired by someone else, which they leverage with their own unique ideas and creativity.

Entrepreneurs are essential to the growth of the economy as they are one of the key providers of employment and contributors to the exchequer.

Types of entrepreneurs

The different types of entrepreneurs can be broadly classified into four types vis-à-vis

• Innovating entrepreneur
• Fabian entrepreneur
• Imitative entrepreneur
• Drone entrepreneur

Innovating entrepreneur

Innovative entrepreneurs are the best type of entrepreneurs mainly because of their distinctive mindset. They have the innate and unique ability to think out of the box and come up with fresh ideas that are also original concepts and introduce the world to their idea.

They also have an inherent quality of influencing people, and they are always highly self-motivated to see things differently and offer non-traditional solutions to challenges. These entrepreneurs generally do not succumb to anything, and they remain unfazed by challenges.

Their passionate energy is always focused on innovation, trying something new in their business, and offering their customers the best goods and services. Another hallmark of innovative entrepreneurs is that they are always open to embracing change and innovations in their line of business, and they come up with different strategies to be the changemakers in the industry and society at large.

Fabian entrepreneur

Fabian entrepreneurs are also termed as ‘slow and steady’ entrepreneurs. They believe in growing their enterprise slowly and steadily. Unlike innovative entrepreneurs, they tend to be a little more sceptical about taking risks, focusing more on laying a strong foundation for their business and working towards sustainability and stability.

They cautiously assess the market environment and new prospects and make thoughtful and prudent decisions. One of the key characteristics of this type of entrepreneur is patience; they take all the necessary precautions before implementing any new idea, tool or technology in their business to ensure that their regular operations remain unaffected.

Fabian entrepreneurs generally adhere to the traditional methods in their business, and most family-owned business enterprises follow their model.

Imitative entrepreneurs

When you talk about entrepreneurial skills, it is gender neutral. There are no different types of women entrepreneurs. Today, the women-owned businesses are equally or more successful than the enterprises run by men. In the current highly competitive business environment, the playing field is equal for both men and women.

As the term itself says, imitative entrepreneurs are individuals who leverage the successful models and strategies of other businesses and implement the same in their own business with a bit of their own twist and creativity. Generally, imitative entrepreneurs are known to be more reluctant to take risks and embrace innovations.

These entrepreneurs hesitate to try new things and rely on conducting business using tried and tested strategies and methods or ideas that have worked well. They rely more on borrowing ideas instead of generating their own new idea. Although this entrepreneurship model has less creativity, it plays an important role in the economy by making the existing idea available to a wider audience.

Drone entrepreneurs

Drone entrepreneurs have a very distinctive characteristic; they are individuals who depend on the efforts of others. They are known to discard new opportunities that come there or duplicate a successful model and remain traditional in their processes. Another unique feature of drone entrepreneurs is that they are quite stubborn and resist change; they feel comfortable being in their own community and surroundings.

This type of entrepreneurship model tends to underperform even if it is detrimental to their business. In a nutshell, drone entrepreneurs do not evolve even when the market is evolving.

If you want to understand types of entrepreneurship, for example, let us know about classic drone entrepreneurship. During the late 20^th century, most typewriter manufacturers in India resisted shifting to manufacturing computers even when the demand for typewriters declined sharply. Their stubbornness to resist change led to the eventual decline of the typewriter business.

Conclusion

So, now that you know the different types of entrepreneurs, their mindsets, and their ways of doing business, which one do you resonate with? No matter what type of entrepreneur you are, the key to success is to have strong financial credentials and invest regularly in your business to leverage the growth opportunities.

And if you lack the necessary funds, you can rely on Udyog Plus, part of Aditya Birla Finance Limited, to get the best business loan solution. It is one of the leading NBFCs in India, and it has a reputation for offering business loans at the most competitive interest rate, with flexible repayment terms and extended tenure.

You can visit the Udyog Plus website to know more about the loan and apply online!