BASED ON GENERATION – Classification of Entrepreneurs
1. First Generation Entrepreneurs
First generation entrepreneurs are the founders of a business in their family.
They do not inherit or continue any existing enterprise.
They start the business from scratch with their own ideas, capital, and efforts.
They face higher risks because there is no previous business background to support them.
They build the foundation of the enterprise through innovation, hard work, and determination.
They are also called new entrepreneurs because they create entirely new ventures.
2. Next Generation Entrepreneurs
Next generation entrepreneurs are those who take over an already established family business.
They continue the enterprise started by their parents or ancestors.
Strictly speaking, some people argue that they are not “true” entrepreneurs because they do not start from zero.
However, they must introduce innovation, modernization, and new strategies to survive in competitive markets.
They are responsible for expanding, improving, and sustaining the existing business.
Their main challenge is to maintain the business reputation while adapting to changing market conditions.
3. Classical Entrepreneurs
A classical entrepreneur focuses mainly on customers and marketing needs.
Their primary goal is maximizing profits and ensuring steady returns.
They prefer running self-supporting ventures that generate consistent income.
They are less concerned about rapid expansion and more concerned about stable earnings.
Business growth is secondary as long as profits continue to flow.
They follow traditional business methods and avoid unnecessary risks.