Here are more thoughts on the pros and cons that come with being a small business
owner:
PROS
CONTROL. You choose the work you like to do and that makes the most of your
strengths and skills. The result can be more job satisfaction.
CONS
ADMINISTRATION. While making all the decisions can be a benefit, it can also
be a burden. Being an entrepreneur comes with a lot of paperwork that can take up
time and energy.
Believe it or not, the first entrepreneurs can be traced back to nearly 20,000 years
ago. The first known trading between humans took place in New Guinea around
17,000 BCE, where locals would exchange obsidian (a volcanic glass prized for its
use in hunting tools) for other needed goods – like tools, skins, and food.
This early type of entrepreneurship continued for millennia. Hunter-gatherer tribes
would trade goods from different parts of their respective regions to provide an
overall benefit for their tribe.
1. Trading Entrepreneur:
As the name itself suggests, the trading entrepreneur undertake the trading
activities. They procure the finished products from the manufacturers and sell these
to the customers directly or through a retailer. These serve as the middlemen as
wholesalers, dealers, and retailers between the manufacturers and customers.
2. Manufacturing Entrepreneur:
3. Agricultural Entrepreneur:
1. Technical Entrepreneur:
The entrepreneurs who establish and run science and technology-based industries
are called ‘technical entrepreneurs.’ Speaking alternatively, these are the
entrepreneurs who make use of science and technology in their enterprises.
Expectedly, they use new and innovative methods of production in their
enterprises.
2. Non-Technical Entrepreneur:
Based on the use of technology, the entrepreneurs who are not technical
entrepreneurs are non-technical entrepreneurs. The forte of their enterprises is not
science and technology. They are concerned with the use of alternative and
imitative methods of marketing and distribution strategies to make their business
survive and thrive in the competitive market.
Based on Ownership:
1. Private Entrepreneur:
2. State Entrepreneur:
3. Joint Entrepreneurs:
When a private entrepreneur and the Government jointly run a business enterprise,
it is called ‘joint entrepreneurs.’
Based on Gender:
1. Men Entrepreneurs:
When business enterprises are owned, managed, and controlled by men, these are
called ‘men entrepreneurs.
2. Women Entrepreneurs:
1. Small-Scale Entrepreneur:
2. Medium-Scale Entrepreneur:
The entrepreneur who has made investment in plant and machinery above Rs 1.00
crore but below Rs 5.00 crore is called ‘medium-scale entrepreneur.’
3. Large-Scale entrepreneur:
The entrepreneur who has made investment in plant and machinery more than Rs
5.00 crore is called ‘large-scale entrepreneur.’
Clarence Danhof (1949), on the basis of his study of the American Agriculture,
classified entrepreneurs in the manner that at the initial stage of economic
development, entrepreneurs have less initiative and drive and as economic
development proceeds, they become more innovating and enthusiastic.
1. Innovating Entrepreneurs:
Innovating entrepreneurs are one who introduce new goods, inaugurate new
method of production, discover new market and reorganise the enterprise. It is
important to note that such entrepreneurs can work only when a certain level of
development is already achieved, and people look forward to change and
improvement.
2. Imitative Entrepreneurs:
3. Fabian Entrepreneurs:
4. Drone Entrepreneurs:
Following are some more types of entrepreneurs listed by some other behavioural
scientists:
1. Solo Operators:
These are the entrepreneurs who essentially work alone and, if needed at all,
employ a few employees. In the beginning, most of the entrepreneurs start their
enterprises like them.
2. Active Partners:
Active partners are those entrepreneurs who start/ carry on an enterprise as a joint
venture. It is important that all of them actively participate in the operations of the
business. Entrepreneurs who only contribute funds to the enterprise but do not
actively participate in business activity are called simply ‘partners’.
3. Inventors:
Such entrepreneurs with their competence and inventiveness invent new products.
Their basic interest lies in research and innovative activities.
4. Challengers:
These are the entrepreneurs who plunge into industry because of the challenges it
presents. When one challenge seems to be met, they begin to look for new
challenges.
5. Buyers:
These are those entrepreneurs who do not like to bear much risk. Hence, in order to
reduce risk involved in setting up a new enterprise, they like to buy the ongoing
one.
6. Life-Timers
These entrepreneurs take business as an integral part to their life. Usually, the
family enterprise and businesses which mainly depend on exercise of personal skill
fall in this type/category of entrepreneurs.
no one is entrepreneur for ever, only when he or she is actually doing the
innovative activity.
basis of sex and hence could be extended to women entrepreneurs without any
restrictions.
Courage
A disturbed mind of the woman acts as a hindrance and she cannot achieve success
in her venture. There could be exceptional cases where such women could succeed
in their chosen field, of course, with great difficulty by crossing all the hurdles of
life. A successful woman remained balanced and stays calm under all
circumstances and has a sound mind. She do not gets disturbed or panicky for
small setbacks in her ventures. A woman with a sound mind has the ability to take
the right decision which helps her to succeed in her business. She has the ability to
visualize the requirements of the society and is clear about the requirements of the
society. A successful woman always thinks out of the box to provide what is
required in the most satisfying way. This helps in achieving further success. She
has a clear vision which forms the basis for a successful career life, of course
personal life too.
Goal oriented
Most of the successful business women set targeted goals in spite of their family
responsibilities. They work hard for achieving their set goal/s. Women who are
goal oriented, work harder and succeed in her business.
She is capable of confidently taking risks and is efficient in making the risk, a
rewarding one.
She can efficiently cope up with the stress levels in a better way by spending value
time with her children, spouse and family members. She very well knows how to
balance her work-life which is one of the keys to successful business. She makes
time to spend with her children and supports them in every possible way without
any excuses of busy work life.
Good organizing skills and managerial skills are the important traits of a woman
entrepreneur. She is competent in developing / building a good organization. She
efficiently co-ordinates with her employees and effectively manages the finances /
capital. To expand her business and achieve her targeted goals, she occasionally
organizes minor events like sales and exhibitions etc.
Leadership qualities
A successful business woman is mostly profit-oriented and focuses / works for her
business growth.
Persistence: Women entrepreneur have strong desire to convert their dream into
reality. They prefer to achieve self-determine goal.
Attribute to work hard: Enterprising women have further ability to work hard. The
imaginative ideas have to come to a fair play. Hard work is needed to build up an
enterprise.
1. Problem of Finance:
Secondly, the banks also consider women less credit-worthy and discourage
women borrowers on the belief that they can at any time leave their business.
Given such situation, women entrepreneurs are bound to rely on their own savings,
if any and loans from friends and relatives who are expectedly meager and
negligible. Thus, women enterprises fail due to the shortage of finance.
Most of the women enterprises are plagued by the scarcity of raw material and
necessary inputs. Added to this are the high prices of raw material, on the one
hand, and getting raw material at the minimum of discount, on the other. The
failure of many women co-operatives in 1971 engaged in basket-making is an
example how the scarcity of raw material sounds the death-knell of enterprises run
by women (Gupta and Srinivasan 2009).
3. Stiff Competition:
4. Limited Mobility:
Unlike men, women mobility in India is highly limited due to various reasons. A
single woman asking for room is still looked upon suspicion. Cumbersome
exercise involved in starting an enterprise coupled with the officials humiliating
attitude towards women compels them to give up idea of starting an enterprise.
5. Family Ties :
In India, it is mainly a women’s duty to look after the children and other members
of the family. Man plays a secondary role only. In case of married women, she has
to strike a fine balance between her business and family. Her total involvement in
family leaves little or no energy and time to devote for business.
Support and approval of husbands seem necessary condition for women’s entry
into business. Accordingly, the educational level and family background of
husbands positively influence women’s entry into business activities.
6. Lack of Education:
In India, around three-fifths (60%) of women are still illiterate. Illiteracy is the root
cause of socio-economic problems. Due to the lack of education and that too
qualitative education, women are not aware of business, technology and market
knowledge. Also, lack of education causes low achievement motivation among
women. Thus, lack of education creates one type or other problems for women in
the setting up and running of business enterprises.
7. Male-Dominated Society:
Male chauvinism is still the order of the day in India. The Constitution of India
speaks of equality between sexes. But, in practice, women are looked upon as abla,
i.e. weak in all respects. Women suffer from male reservations about a women’s
role, ability and capacity and are treated accordingly. In nutshell, in the male-
dominated Indian society, women are not treated equal to men. This, in turn, serves
as a barrier to women entry into business.