Entrepreneurs have their own typical qualities depending on their social, economic, political and cultural environment. Each has an independent way of thinking and a unique approach to decision making and handling situations in the business.
The following are the three main types of entrepreneurs.
- Craft Entrepreneurs
- Opportunistic Entrepreneurs
- Egoistic Entrepreneurs
- Craft Entrepreneurs
Craft entrepreneurs are those who may start a business using their learnt or acquired skills.
They may exhibit the following characteristics:
- They are of blue collar origin i.e they come from the informal sector of employment.
- Their education or training background is focused on the current business activity.
- They may have low or high technology experience.
- They have a reputation in a specific industry e.g masonry, teaching, engineering.
- They are marginal people and were mostly associated with fellow workers. i.e they do not identify with unions.
- They have limited cultural background and social induction with entrepreneurship.
- They are not interested in growing their business ie they are not ambitious. E.g mechanics who have worked in motor factories, leave to start their own simple garages.
- They insist that for things to be done right, they must be done by themselves
- They tend to hire people they have known for a long time.
- They gain their customers through prior relations or personal contacts.
- They do not hold the lowest post nor are they at the management level in the organization they worked for.
2. Opportunistic Entrepreneurs
Opportunistic entrepreneurs are those entrepreneurs who may scan the environment in search of a viable business opportunity that may exist. They are creative and very hardworking and venture in businesses they do not necessarily have skills or training in.
These types of entrepreneurs exhibit the following characteristics:
- They are of middle class origin
- Their education involved many different kindheavingcourses
- They have a variety of work experiences and they have been through various educational courses.
- They have a reputation across the industry.
- They are more aggressive/ambitious.
- They have been in senior profile levels in employment.
- They are previously associated with managers and business owners.
- They believe that those holding the lower posts in an organization should handle operations.
- Their customers are neither gained through prior relations nor personal contacts.
3. Egoistic Entrepreneurs
Egoistic entrepreneurs venture into business not only because there exists a business opening but because they would also like to satisfy their ego. They are highly motivated. These types of entrepreneurs are:
- They are very eager to experiment upon new ideas.
- They can acquire material and financial resources to experiment upon new ideas
- Their economic system is well developed enough to bear the costs of venturing into a business.
- They are well networked are able to find new markets and customers with ease.