Classification Based on Development Stage
First generation entrepreneur is one who starts venture by virtue of his knowledge, skill, talent and competence. He/she innovates a product/service by technical expertise possessed by him/her. These entrepreneurs do not have any family background or prior exposure to the venture initiated by them. They are self made entrepreneurs.
Modern entrepreneur is one who keenly observes the dynamics of the market with eagle eye and identify the unfilled gaps, if any in product/service marketed. He/she takes initiative in starting the venture to cater to the unmet needs of the market.
Classical entrepreneur is one who starts his own venture as a family business. They are called life timers. They engage in business as a matter of routine. Their prior exposure to business environment impels them to commence venture of their own. Entrepreneurs from the business families are called classical entrepreneurs. For instance where son of provision merchant start his own provision shops, the former is called classical entrepreneur.