VAE 511: Livestock Entrepreneurship (1+0)

TYPES OF ENTREPRENEUR

• Clarence Danhof Classification: Clarence Danhof classifies entrepreneurs into four types.
  • Innovative: Innovative entrepreneur is one who assembles and synthesizes information and introduces new combinations of factors of production.
  • Imitative: Imitative entrepreneur is also known as adoptive entrepreneur. He simply adopts successful innovation introduced by other innovators.
  • Fabian: The Fabian entrepreneur is timid and cautious. He imitates other innovations only if he is certain that failure to do so may damage his business.
  • Drone: His entrepreneurial activity may be restricted to just one or two innovations. He refuses to adopt changes in production even at the risk of reduced returns.
• Arthur H. Cole Classification: Arthur H. Cole classifies entrepreneurs as
  • Empirical: He is an entrepreneur who hardly introduces anything revolutionary and follows the principle of rule of thumb.
  • Rational: The rational entrepreneur is well informed about the general economic conditions and introduces changes which look more revolutionary.
  • Cognitive: Cognitive entrepreneur is well informed, draws upon the advice and services of expert’s scheme of enterprise.

• Classification on the Basis of Ownership
  • Private: Private entrepreneur is motivated by profit and it would not enter those sectors of the economy in which prospects of monetary rewards are not very bright.
  • Public Entrepreneurship: In the undeveloped countries Government will take the initiative to start an enterprise where capital requirements are very high and returns are less with longer pay back period .
• Classification Based on the Scale of Enterprise
  • Small Scale: This classification is very popular in the developing countries. In India, small scale enterprise is defined as an industrial undertaking in which the investment in fixed assets in farm buildings/animals/plant and machinery does not exceed Rs. 10 million. Investment limit in arm buildings/animals/plantand machinery in respect of tiny enterprises is Rs. 2.5 million irrespective of location of the unit. Small entrepreneurs do not possess the necessary talents and resources to imitate large scale production and introduce revolutionary technological changes.(Broiler farms, Dairy farms etc., in India are mainly on small scale).
    
  • Large Scale: In the developed countries large scale enterprises are in greater numbers. They posses the necessary financial and managerial capabilities to initiate and introduce new technical changes. The result is that the developed countries are able to develop and sustain a high level of technical progress.(Layer farms in India have now become large scale investment).