Question

How do you Classify entrepreneurs?

Answer 1

Entrepreneurs are now broadly classified into three groups namely risk bearer, organizer, and innovator.

1. Entrepreneur as a risk bearer: Entrepreneurs acts as an agent combining all factors of production to produce a product or service in order to sell at an uncertain price in future.

2. Entrepreneur as an organizer: An entrepreneur is one who brings together various factors of production and creates an entity to produce a product or service and supervises and coordinates several functions in the process.

3. Entrepreneur as an innovator: According to Joseph A. Schumpeter in the year 1934 used innovation as a criterion to define an individual as an entrepreneur. According to him, the entrepreneur is one who

• Introduces a brand new product in the market.
• Institute's new technology to produce a new product.
• Discovers new course of supply of raw materials.