What or who is an entrepreneur? This is perhaps a question that still does not have a definite definition to its true sense. Many people define it in many different ways. So if you go by the bookish definition of the term that most of must have read in our school or college days would define the term to be: a person who sets up any successful businesses & business deals. But the definition does not clear the meaning in true sense as we all know that not everyone who sets up business and runs it successfully is called entrepreneurs.
Then, how exactly can the term are defined? The term belongs to the world of business and economy. Even economists and business people can’t seem to agree on one clear definition to describe the term. According to some of them point of views an entrepreneur is someone who willingly bears risks of a new venture if he or she sees a significant chance for earning profit. While some prefer to define it as: an innovator who markets his or her innovation. Even over the years many prominent scholars have defined the terms in many different ways.
The concept came into existence for the first time in 1700. The term is a loanword and has its origin in French. In French the term is used to define “an individual who organizes and operates a business or businesses, taking financial risks to do so.” The very first definition of the term came from Richard Cantillon, a noted Irish – French economist, which goes like this: “the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.”
Just like its definition the classification of the term also varies based on different facets. Some such classifications are the following.
Based on functional aspect the term entrepreneur can be classified into four types:
· Innovative: who introduce new goods and production methods and also discovers new markets.
· Limitative or adoptive: who does not innovate but imitate techniques and technologies of others.
· Fabian: one who does not experiment with any changes in their enterprise, until there is a serious need of it for the existence of their enterprise itself?
· Drone: who are known to be diehard followers of conservatism?
Based on Development aspect we have:
· Primeover: powerful line of development, expansion and diversification
· Minor innovator: contributes to economic progress with better use of resources.