Classification of Entrepreneur are as follow:

1.1:

Based on Functional Characteristics

1.1.1. Innovative entrepreneur:

Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganise their enterprises. Entrepreneurs in this group are characterised by an aggressive assemblage of information for trying out a novel combination of factors. Such entrepreneurs can do well only when a certain level of development has already been achieved; they look forward to improving upon the past.

1.1.2. Imitative or adoptive entrepreneur:

Such entrepreneurs do not innovate themselves, but imitate techniques and technology innovated by others. Entrepreneurs in this group are characterised by their readiness to adopt successful innovations by successful entrepreneurs. Such entrepreneurs are particularly suitable for underdeveloped economies as adoption saves costs of trial and error.

1.1.3. Fabian entrepreneur:

Such entrepreneurs display great caution and scepticism in experimenting with any change in their enterprise. They change only when there is an imminent threat to the very existence of their enterprise.

1.1.4. Drone entrepreneur:

Such entrepreneurs are characterised by a die-hard conservatism and may even be prepared to suffer the loss of business.

1.2 Based on the Developmental Angle

1.2.1. Prime mover:

This entrepreneur sets in motion a powerful sequence of development, expansion, and diversification of business.

1.2.2. Manager:

Such an entrepreneur does not initiate expansion and is content just staying in business.

1.2.3. Minor innovator:

This entrepreneur contributes to economic progress by finding better use for existing resources.

1.2.4. Satellite:

This entrepreneur assumes a supplier's role and slowly moves towards a productive enterprise.

1.2.5. Local trading:

Such an entrepreneur limits his enterprise to the local market.

1.3 Based on Types of Entrepreneurial Business

1.3.1. Manufacturing:

An entrepreneur who runs such a business actually produces the products that can be sold using resources and supplies. For example, apparel and other textile products, chemical and related products, electronics and other electrical equipment, fabricated metal products, industrial machinery and equipment, printing and publishing, rubber and miscellaneous plastic products, stone, clay etc.

1.3.2. Wholesaling:

An entrepreneur with such a business sells products to the middle man.

1.3.3. Retailing:

An entrepreneur with such a business sells products directly to the people who use or consume them.

1.3.4. Service:

An entrepreneur in this business sells services rather than products.

1.4 Based on the Nine Personality Types of Entrepreneurs

1.4.1. The Improver:

If you operate your business predominately in the improver mode, you are focused on using your company as a means to improve the world. Your overarching motto is: morally correct companies will be re-warded working on a noble cause. Improvers have an unwavering ability to run their business with high integrity and ethics.

1.4.2 The Advisor:

This business personality type will provide an extremely high level of assistance and advice to customers. The advisor's motto is: the customer is right and we must do everything to please them. Companies built by advisors become customer focused.

1.4.3. The Superstar:

Here the business is centred on the charisma and high energy of the Superstar CEO. This personality often will cause you to build your business around your own personal brand.

1.4.4 The Artist:

This business personality is the reserved but a highly creative type. Often found in businesses demanding creativity such as web design and ad agencies. As an artist type you'll tend to build your business around the unique talents and creativities that you have.

1.4.5 The Visionary:

A business built by a Visionary will often be based on the future vision and thoughts of the founder. You will have a high degree of curiosity to understand the world around you and will set-up plan to avoid the landmines.

1.4.6. The Analyst:

If you run a business as an Analyst, your company focus is on fixing problems in a systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving.

1.4.7. The Fireball:

A business owned and operated by a Fireball is full of life, energy and optimism. Your company is life energizing and makes customers feel the company has a get it done attitude in a fun playful manner.

1.4.8. The Hero:

You have an incredible will and ability to lead the world and your business through any challenge. You are the essence of entrepreneurship and can assemble great companies.

1.4.9. The Healer:

If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm.

2.2 Stages in Entrepreneurial Process:

Barringer and Gresock (2008) identified various stages in the entrepreneurial process as shown in below Figure.

Fig 2.1: Stages in Entrepreneurial Process

2.2.1 Genesis of a business idea:

This is the first step in the entrepreneurial process and requires critical thinking on part of the entrepreneur to select the most viable business ideas from a set of available options. This not only includes critical analysis of the merits and demerits of the innovative product/service created by the entrepreneur, but also includes the study of the market potential (the existing and potential competitors), marketing, finance, human resources, and operational issues related to the business idea.

2.2.2 Conduct preliminary feasibility

: The preliminary feasibility involves a quick assessment about the potential of the business ideas and screening out an idea with the highest potential. This step is necessary to ensure that comprehensive and detailed feasibility analysis (which involves considerable time and effort) to be conducted in the next step is done only for the single best idea.

2.2.3 Detailed feasibility analysis:

Having screened out an idea with high potential, it is subjected to the detailed feasibility analysis which may take a couple of days or weeks. The detailed analysis is helpful in making suitable modifications in the business idea before taking it to the business plan stage.

2.2.3.1 Product/service feasibility:

The feasibility of the product/service is performed by concept testing, i.e. showing - concept or idea to a sample group of potential customers to gauge their reaction, to take their suggestions for further development of the concept and to assess its sales potential. A prototype or a sample unit of the product can also be created in simple form depending upon the cost involved.

2.2.3.2 Industry/Market feasibility:

The feasibility analysis of industry/market involves three considerations. Firstly, how attractive is the market for the new business idea or concept. A market segment experiencing growth, with high prof margins and less competition would naturally be attractive for the entrepreneur, Secondly, efforts should be expended to identify the niche within a large marker, i.e. an arrow segment of customers with a common expectation from the product or service. This way, the entrepreneur can buy sometime for establishing his venture before competing head-on with existing established players in the market. Last but not the least, a candid assessment of the overall market potential of the new concept should be made in realistic manner.

2.2.3.3 Organizational feasibility:

Two issues should be addressed here: an assessment about the organizational prowess or capability of the initial management team (which would naturally be small for the start-up firm, including the entrepreneur), and the availability of non-financial resources (like office space, talent pool in the area where the venture would be started, etc.).

2.2.3.4 Financial feasibility:

The total initial cash needed for starting the venture and overall financial attractiveness of the investment are at the heart of financial feasibility. It should be kept in mind that very rarely do new start-up ventures are able to secure funding from the financial institutions as debt or are able to find equity investors (people who are willing to invest money by becoming partners in the venture). Therefore, very clear identification about the sources of sufficient funds to cover all the capital expenditures and operating (recurring) expenses to generate first unit of the ales should be done.

2.2.4 Write a business plan:

A business plan is a written document containing the details about every aspect of the proposed business venture.It serves two purposes: to provide a "road map" for the people internal to the organization, i.e. the employees, stakeholders, etc., and to convince the potential investors and financial institutions about the viability of the venture so that they may agree to invest in it.

2.2.5 Launch the venture:

This is the final step in the entrepreneurial process and involves launching the venture as per the business plan. Due to the uncertainties of the business environment, the entrepreneur should be prepared to face hurdles and challenges during the launching of the venture as well as in the subsequent periods of time.

Barriers in Entrepreneurship are as follows:

Krasniqi (2007) identified various barriers to entrepreneurship as shown in below figure.

3.1 Macroeconomic environment:

Macroeconomic environment conducive to entrepreneurship is dependent upon the policies of the government in supporting private participation in business. Macro means large and the term macroeconomic means the larger view of the economy. It is different from the micro (small) view which concerns a firm or a company in the market. For example, in India the process of liberalization started during the mid-1980s whereby the government started the process of encouraging foreign MNCs (multinational corporations) to create joint ventures (JVs) with Indian domestic companies. This process created a macroeconomic environment in which many new small and medium enterprises (SMEs) evolved to become suppliers and vendors for the JVs so created.

Fig 3.1: Barriers to Entrepreneurship

3.2 Legal and regulatory environment:

The legal and regulatory environment for entrepreneurship is formed by registration and licensing procedures, commercial and contractual laws, property rights laws, bankruptcy and collateral law, real estate regulations and labour laws. If the administrative procedures and laws are unclear, time-consuming and cumbersome, they would pose barriers to entrepreneurship.

3.3 Corruption and unfair competition:

A corrupt economy can lead to unfair competition, which in turn can become a major deterrent to entrepreneurial activity. Excessive regulations and approvals from the government required by entrepreneurs may make the government officials corrupt.

3.4 Financial obstacles:

Start-up ventures are usually dependent upon capital to be sourced from banks and financial institutions. It has 48 been observed that in many economies banks are reluctant to give loans to small start-up firms.

3.5 Tax burden:

In many regions, the government charges high taxes from even small start-up ventures and has tedious procedures for compliance of tax submission formalities. In order to promote entrepreneurship, the governments would need to have rational tax structures with easy tax submission procedures.

3.6 Challenges in attracting talent:

This is another big issue faced by small start-up companies. The best of talent in engineering, management and other disciplines wants to work for multinational corporations (MNCs)rather than for small start-ups. This attitude of professionals makes it difficult for entrepreneurs to attract them for their entrepreneurial ventures. Thus, there is a dire need to create an ecosystem for entrepreneurship so that budding professionals start valuing their association with entrepreneurial ventures compared to working for the MNCs.

3.7 Difficulty to source raw material:

For entering a market with a product, an entrepreneur has to identify if the suppliers of raw materials and components existing in the market have adequate capacity or are willing to expand capacity to meet the requirements of a new player in the industry (Porter, 1998). If not, then it becomes imperative to establish new suppliers in the market, which may be cumbersome for the entrepreneur. Thus, this difficulty to source raw materials and components often deters entrepreneurs to enter the market.

Organizational feasibility is also called as Technical Feasibility.
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