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Classification According to Type of Business
Business entrepreneur is called solo entrepreneur. He/she is the one who conceives an idea for a new product/service and establishes a business enterprise to translate his idea into reality. He/she may establish small or large enterprise to commercially exploit his/he idea. He/she takes up production, operations and pursues marketing activities.
Trading entrepreneurs are those who restrict themselves to buying and selling finished goods. They may be engaged in domestic and international trade. Their core strength lies in distribution and marketing. They get their income by way of commission and marketing.
These are entrepreneurs who manufacture products to cater to the needs of consuming public after identifying the need left unfulfilled by the manufacturer hitherto. They may be small, medium and large entrepreneurs. Industrial entrepreneurs mobilise the resources of various types and create an entity to manufacture the products or service. They add utility to products rolled out by them which is termed as value addition.
Corporate entrepreneur is called promoter. He/she takes initiative necessary to start an entity under corporate format. He/she arranges to fulfil the formalities to start a corporate entity under Company law. Corporate entrepreneur assembles all the resources and put in place organisation to run the business on a day-to-day basis. In corporate form of organisation, ownership and management are separated. Corporate entities are registered under the Companies Act or under the Trust Act. Corporate entrepreneurs install a team of experts to manage the entity on a day to day basis.
Agricultural entrepreneurs are those entrepreneurs who raise farm products and market them. They use the various inputs like labour, fertilizer, insecticide, water technology etc. to raise the products and market their products either directly or through co-operative entities or through brokers or through tie up with large retailers. Those who raise allied products like poultry, meat, fish, honey, skin, agricultural implements, flower, silk, fruits, prawn etc., are called agricultural entrepreneur. In short these entrepreneurs pursue their venture in agriculture and allied sector.
Retail entrepreneurs are those who enter into venture of distributing the end-product to final consumer while wholesale entrepreneurs take up the venture of distributing the product to retailer. They used to buy the goods in small quantities from numerous wholesalers and make it available different products of different brands under one roof to end consumer.
Service entrepreneurs enter into the venture of supplying service products to end consumers. Hoteliers, airlines, banking, insurance and financial service providers, repair service organisation, bus operators, train service, advisory organisation, advertising firms, manpower supplier etc., come under service entrepreneur’s category.
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