Textbook - An Entrepreneur, Entrepreneurship, Class 11 | Entrepreneurship Class 11 - Commerce PDF Download

 Page 1


 
18 
UNIT 2 
An Entrepreneur 
Learning Objectives: 
After reading the chapter the student will be able to: 
? Differentiate between various types of entrepreneurs 
? Explain  the competencies of an Entrepreneur 
? Understand the meaning  of Ethical Entrepreneurship 
? Appreciate the importance of Ethical Entrepreneurship 
? Highlight the value of ethics to an entrepreneur 
? Understand the values, attitudes and motivation required by an Entrepreneur 
? Differentiate between Entrepreneur and an employee 
? State the meaning and describe the importance of Intrapreneurship in an organisation 
Case Study 
Steve Jobs and Apple 
At 20, he and a friend (Steve Wozniak) started a company in a garage on April 1, 1976. Later that 
year, the duo debuted the Apple I at the Homebrew Computer Club 
in Palo Alto, California. A local store offered to buy 50 machines 
and to finance the production, the duo had to sell their most 
expensive possessions. Jobs sold his Volkswagen van while Wozniak 
sold his Hewlett-Packard scientific calculator. 
Jobs named their company – Apple in memory of a happy summer 
he had spent as an orchard worker in Oregon. 
By 1982 however, his company sales sagged in the face of 
competition from IBM?s new PC. Jobs and Wozniak unveiled their 
new creation, Lisa to increase the company?s bottom line, only to be another expensive failure. 
Not wanting to dwell on these successive failures, they worked on a new machine called the 
Macintosh. Jobs was reported to commandeer the project, ruthlessly pushing its computer engineers 
and flying a pirate flag above the building where the team worked. 
By 1986 the Mac, which Jobs promised to be „insanely great? was a huge success. After 10 years, 
starting from 2 kids working in a garage, Apple computer had grown into a $2 billion dollar company 
with over 4000 employees. 
At 30 Jobs, however, was asked to leave the company he co-founded with Steve Wozniak. He left the 
company after losing a bitter battle over control with Apple?s CEO, John Sculley (whom Jobs had 
recruited from Pepsi Cola). 
Page 2


 
18 
UNIT 2 
An Entrepreneur 
Learning Objectives: 
After reading the chapter the student will be able to: 
? Differentiate between various types of entrepreneurs 
? Explain  the competencies of an Entrepreneur 
? Understand the meaning  of Ethical Entrepreneurship 
? Appreciate the importance of Ethical Entrepreneurship 
? Highlight the value of ethics to an entrepreneur 
? Understand the values, attitudes and motivation required by an Entrepreneur 
? Differentiate between Entrepreneur and an employee 
? State the meaning and describe the importance of Intrapreneurship in an organisation 
Case Study 
Steve Jobs and Apple 
At 20, he and a friend (Steve Wozniak) started a company in a garage on April 1, 1976. Later that 
year, the duo debuted the Apple I at the Homebrew Computer Club 
in Palo Alto, California. A local store offered to buy 50 machines 
and to finance the production, the duo had to sell their most 
expensive possessions. Jobs sold his Volkswagen van while Wozniak 
sold his Hewlett-Packard scientific calculator. 
Jobs named their company – Apple in memory of a happy summer 
he had spent as an orchard worker in Oregon. 
By 1982 however, his company sales sagged in the face of 
competition from IBM?s new PC. Jobs and Wozniak unveiled their 
new creation, Lisa to increase the company?s bottom line, only to be another expensive failure. 
Not wanting to dwell on these successive failures, they worked on a new machine called the 
Macintosh. Jobs was reported to commandeer the project, ruthlessly pushing its computer engineers 
and flying a pirate flag above the building where the team worked. 
By 1986 the Mac, which Jobs promised to be „insanely great? was a huge success. After 10 years, 
starting from 2 kids working in a garage, Apple computer had grown into a $2 billion dollar company 
with over 4000 employees. 
At 30 Jobs, however, was asked to leave the company he co-founded with Steve Wozniak. He left the 
company after losing a bitter battle over control with Apple?s CEO, John Sculley (whom Jobs had 
recruited from Pepsi Cola). 
 
19 
After Apple 
Apparently both had different views of how the company should be handled and in one meeting 
Sculley had told security analysts that Jobs would have no role in the operations of the company “now 
or in the future.” When Jobs heard of the message he said, “You?ve probably had somebody punch you 
in the stomach and it knocks the wind out you and you cannot breathe. The harder you try to breathe, 
the more you cannot breathe. And you know that the only thing you can do is just relax so you can 
start breathing again.” 
Jobs sold over $20 million of his Apple stock, spent days bicycling along the beach, feeling sad and 
lost, toured Paris, and journeyed on to Italy. 
Recalling this publicly heart-breaking episode Jobs said, 
„I didn?t see it then, but it turned out that getting fired from Apple was the best thing that could have 
ever happened to me. The heaviness of being successful was replaced by the lightness of being a 
beginner again, less sure about everything. It freed me to enter one of the most creative periods of my 
life.? 
During the next five years he started two companies – NeXT Step and Pixar. 
NeXT Step which produces NeXT, a $9,995 cube-shaped workstation, which aimed to create a 
workstation for research and higher, didn?t do as well as Jobs had dreamed for. It did poorly and Jobs 
pulled the plug in 1993. 
Pixar, however was a success story. The company produced the first computer-animated film, the Toy 
Story and when Pixar?s stock went public, Jobs became an instant billionaire. 
Jobs, back with a vengeance 
Meanwhile, his old company, Apple was under immense pressure from rival Microsoft and in 1996 
posted billions of dollars in losses. In December 1996 Jobs convinced Apple to buy NeXT and make its 
software the foundation of the next-generation Mac OS. The technology he developed at NeXT 
became the catalyst of Apple?s comeback. Initially appointed as Apple?s adviser, Steve Jobs was named 
Apple?s interim CEO in 1997. 
In 2004, he was diagnosed with cancer of the pancreas. Jobs was told that the cancer was incurable 
and he would only live for another three to six months. Later, a biopsy showed that he actually had a 
very rare form of pancreatic cancer that is curable with surgery. He had the surgery and survived. 
Under his leadership, Apple returned to profitability and introduced innovations such as the iPod. 
Steve Jobs ’ advice 
“Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept 
me going was that I loved what I did. You’ve got to find what you love.  Your work is going to fill a large 
part of your life, and the only way to be truly satisfied is to do what you believe is great work. 
And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t 
settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just 
gets better and better as the years roll on. So keep looking until you find it. Don’t settle. 
Page 3


 
18 
UNIT 2 
An Entrepreneur 
Learning Objectives: 
After reading the chapter the student will be able to: 
? Differentiate between various types of entrepreneurs 
? Explain  the competencies of an Entrepreneur 
? Understand the meaning  of Ethical Entrepreneurship 
? Appreciate the importance of Ethical Entrepreneurship 
? Highlight the value of ethics to an entrepreneur 
? Understand the values, attitudes and motivation required by an Entrepreneur 
? Differentiate between Entrepreneur and an employee 
? State the meaning and describe the importance of Intrapreneurship in an organisation 
Case Study 
Steve Jobs and Apple 
At 20, he and a friend (Steve Wozniak) started a company in a garage on April 1, 1976. Later that 
year, the duo debuted the Apple I at the Homebrew Computer Club 
in Palo Alto, California. A local store offered to buy 50 machines 
and to finance the production, the duo had to sell their most 
expensive possessions. Jobs sold his Volkswagen van while Wozniak 
sold his Hewlett-Packard scientific calculator. 
Jobs named their company – Apple in memory of a happy summer 
he had spent as an orchard worker in Oregon. 
By 1982 however, his company sales sagged in the face of 
competition from IBM?s new PC. Jobs and Wozniak unveiled their 
new creation, Lisa to increase the company?s bottom line, only to be another expensive failure. 
Not wanting to dwell on these successive failures, they worked on a new machine called the 
Macintosh. Jobs was reported to commandeer the project, ruthlessly pushing its computer engineers 
and flying a pirate flag above the building where the team worked. 
By 1986 the Mac, which Jobs promised to be „insanely great? was a huge success. After 10 years, 
starting from 2 kids working in a garage, Apple computer had grown into a $2 billion dollar company 
with over 4000 employees. 
At 30 Jobs, however, was asked to leave the company he co-founded with Steve Wozniak. He left the 
company after losing a bitter battle over control with Apple?s CEO, John Sculley (whom Jobs had 
recruited from Pepsi Cola). 
 
19 
After Apple 
Apparently both had different views of how the company should be handled and in one meeting 
Sculley had told security analysts that Jobs would have no role in the operations of the company “now 
or in the future.” When Jobs heard of the message he said, “You?ve probably had somebody punch you 
in the stomach and it knocks the wind out you and you cannot breathe. The harder you try to breathe, 
the more you cannot breathe. And you know that the only thing you can do is just relax so you can 
start breathing again.” 
Jobs sold over $20 million of his Apple stock, spent days bicycling along the beach, feeling sad and 
lost, toured Paris, and journeyed on to Italy. 
Recalling this publicly heart-breaking episode Jobs said, 
„I didn?t see it then, but it turned out that getting fired from Apple was the best thing that could have 
ever happened to me. The heaviness of being successful was replaced by the lightness of being a 
beginner again, less sure about everything. It freed me to enter one of the most creative periods of my 
life.? 
During the next five years he started two companies – NeXT Step and Pixar. 
NeXT Step which produces NeXT, a $9,995 cube-shaped workstation, which aimed to create a 
workstation for research and higher, didn?t do as well as Jobs had dreamed for. It did poorly and Jobs 
pulled the plug in 1993. 
Pixar, however was a success story. The company produced the first computer-animated film, the Toy 
Story and when Pixar?s stock went public, Jobs became an instant billionaire. 
Jobs, back with a vengeance 
Meanwhile, his old company, Apple was under immense pressure from rival Microsoft and in 1996 
posted billions of dollars in losses. In December 1996 Jobs convinced Apple to buy NeXT and make its 
software the foundation of the next-generation Mac OS. The technology he developed at NeXT 
became the catalyst of Apple?s comeback. Initially appointed as Apple?s adviser, Steve Jobs was named 
Apple?s interim CEO in 1997. 
In 2004, he was diagnosed with cancer of the pancreas. Jobs was told that the cancer was incurable 
and he would only live for another three to six months. Later, a biopsy showed that he actually had a 
very rare form of pancreatic cancer that is curable with surgery. He had the surgery and survived. 
Under his leadership, Apple returned to profitability and introduced innovations such as the iPod. 
Steve Jobs ’ advice 
“Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept 
me going was that I loved what I did. You’ve got to find what you love.  Your work is going to fill a large 
part of your life, and the only way to be truly satisfied is to do what you believe is great work. 
And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t 
settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just 
gets better and better as the years roll on. So keep looking until you find it. Don’t settle. 
 
20 
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma-which is 
living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your 
own inner voice. And most important, have the courage to follow your heart and intuition. They somehow 
already know what you truly want to become. Everything else is secondary”. 
Types of Entrepreneurs 
Entrepreneurs can be of different types. Some may prefer to go it alone or share the risk in 
groups with others. They are found in every economic system and every form of economic 
activity as well as in other social and cultural activities. They are seen from amongst farmers, 
labourers, fishermen, tribes, artisans, artists, importers, exporters, bankers, professionals, 
politicians, bureaucrats and so many others. Based on the above features C. Danhof has broadly 
classified entrepreneurs into four types. These are discussed below. 
1.  Innovative Entrepreneur: 
In the early phases of economic development, entrepreneurs have 
initiative to start new ventures and find innovative ways to start an 
enterprise. Thus, innovative entrepreneurs are those who introduces 
new products, new methods of production techniques, or discovers a 
new market or a new service or reorganises the enterprise. It is the 
innovative entrepreneurs who built the modern capitalism. They are 
commonly found in developed countries. They are aggressive in nature 
who exhibit cleverness in putting attractive possibilities into practice.  
Example: Walt Disney who started huge theme parks such as the Disney Land. 
2.  Imitative Entrepreneur: 
 There is a second group, generally referred as imitative entrepreneurs. They usually copy 
or adopt suitable innovations made by innovative entrepreneurs. They are adaptive and 
more flexible. They are organisers of factors of production rather than creators. The 
imitative entrepreneurs are also revolutionary and important. They contribute to the 
development of underdeveloped economies. Example: The local mobile companies using 
the same technology as big companies to manufacture their products. 
3.  Fabian Entrepreneurs: 
 The third type are the Fabian Entrepreneurs. Such entrepreneurs are very shy and lazy. 
They are very cautious. They do not venture or take risks. They are rigid and fundamental 
in their approach. Usually, they are second generation entrepreneurs in a family business 
enterprise. They follow the footsteps of their predecessors. They imitate only when they 
are sure that failure to do so would result in a loss of the relative position in the enterprise. 
4.  Drone Entrepreneurs: 
 The fourth type is the Drone Entrepreneurs, who refuse to copy or use opportunities that 
come their way. They are conventional in their approach. They are not ready to make 
changes in their existing production methods even if they suffer losses. They resist 
changes. They may be termed as laggards. 
Page 4


 
18 
UNIT 2 
An Entrepreneur 
Learning Objectives: 
After reading the chapter the student will be able to: 
? Differentiate between various types of entrepreneurs 
? Explain  the competencies of an Entrepreneur 
? Understand the meaning  of Ethical Entrepreneurship 
? Appreciate the importance of Ethical Entrepreneurship 
? Highlight the value of ethics to an entrepreneur 
? Understand the values, attitudes and motivation required by an Entrepreneur 
? Differentiate between Entrepreneur and an employee 
? State the meaning and describe the importance of Intrapreneurship in an organisation 
Case Study 
Steve Jobs and Apple 
At 20, he and a friend (Steve Wozniak) started a company in a garage on April 1, 1976. Later that 
year, the duo debuted the Apple I at the Homebrew Computer Club 
in Palo Alto, California. A local store offered to buy 50 machines 
and to finance the production, the duo had to sell their most 
expensive possessions. Jobs sold his Volkswagen van while Wozniak 
sold his Hewlett-Packard scientific calculator. 
Jobs named their company – Apple in memory of a happy summer 
he had spent as an orchard worker in Oregon. 
By 1982 however, his company sales sagged in the face of 
competition from IBM?s new PC. Jobs and Wozniak unveiled their 
new creation, Lisa to increase the company?s bottom line, only to be another expensive failure. 
Not wanting to dwell on these successive failures, they worked on a new machine called the 
Macintosh. Jobs was reported to commandeer the project, ruthlessly pushing its computer engineers 
and flying a pirate flag above the building where the team worked. 
By 1986 the Mac, which Jobs promised to be „insanely great? was a huge success. After 10 years, 
starting from 2 kids working in a garage, Apple computer had grown into a $2 billion dollar company 
with over 4000 employees. 
At 30 Jobs, however, was asked to leave the company he co-founded with Steve Wozniak. He left the 
company after losing a bitter battle over control with Apple?s CEO, John Sculley (whom Jobs had 
recruited from Pepsi Cola). 
 
19 
After Apple 
Apparently both had different views of how the company should be handled and in one meeting 
Sculley had told security analysts that Jobs would have no role in the operations of the company “now 
or in the future.” When Jobs heard of the message he said, “You?ve probably had somebody punch you 
in the stomach and it knocks the wind out you and you cannot breathe. The harder you try to breathe, 
the more you cannot breathe. And you know that the only thing you can do is just relax so you can 
start breathing again.” 
Jobs sold over $20 million of his Apple stock, spent days bicycling along the beach, feeling sad and 
lost, toured Paris, and journeyed on to Italy. 
Recalling this publicly heart-breaking episode Jobs said, 
„I didn?t see it then, but it turned out that getting fired from Apple was the best thing that could have 
ever happened to me. The heaviness of being successful was replaced by the lightness of being a 
beginner again, less sure about everything. It freed me to enter one of the most creative periods of my 
life.? 
During the next five years he started two companies – NeXT Step and Pixar. 
NeXT Step which produces NeXT, a $9,995 cube-shaped workstation, which aimed to create a 
workstation for research and higher, didn?t do as well as Jobs had dreamed for. It did poorly and Jobs 
pulled the plug in 1993. 
Pixar, however was a success story. The company produced the first computer-animated film, the Toy 
Story and when Pixar?s stock went public, Jobs became an instant billionaire. 
Jobs, back with a vengeance 
Meanwhile, his old company, Apple was under immense pressure from rival Microsoft and in 1996 
posted billions of dollars in losses. In December 1996 Jobs convinced Apple to buy NeXT and make its 
software the foundation of the next-generation Mac OS. The technology he developed at NeXT 
became the catalyst of Apple?s comeback. Initially appointed as Apple?s adviser, Steve Jobs was named 
Apple?s interim CEO in 1997. 
In 2004, he was diagnosed with cancer of the pancreas. Jobs was told that the cancer was incurable 
and he would only live for another three to six months. Later, a biopsy showed that he actually had a 
very rare form of pancreatic cancer that is curable with surgery. He had the surgery and survived. 
Under his leadership, Apple returned to profitability and introduced innovations such as the iPod. 
Steve Jobs ’ advice 
“Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept 
me going was that I loved what I did. You’ve got to find what you love.  Your work is going to fill a large 
part of your life, and the only way to be truly satisfied is to do what you believe is great work. 
And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t 
settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just 
gets better and better as the years roll on. So keep looking until you find it. Don’t settle. 
 
20 
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma-which is 
living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your 
own inner voice. And most important, have the courage to follow your heart and intuition. They somehow 
already know what you truly want to become. Everything else is secondary”. 
Types of Entrepreneurs 
Entrepreneurs can be of different types. Some may prefer to go it alone or share the risk in 
groups with others. They are found in every economic system and every form of economic 
activity as well as in other social and cultural activities. They are seen from amongst farmers, 
labourers, fishermen, tribes, artisans, artists, importers, exporters, bankers, professionals, 
politicians, bureaucrats and so many others. Based on the above features C. Danhof has broadly 
classified entrepreneurs into four types. These are discussed below. 
1.  Innovative Entrepreneur: 
In the early phases of economic development, entrepreneurs have 
initiative to start new ventures and find innovative ways to start an 
enterprise. Thus, innovative entrepreneurs are those who introduces 
new products, new methods of production techniques, or discovers a 
new market or a new service or reorganises the enterprise. It is the 
innovative entrepreneurs who built the modern capitalism. They are 
commonly found in developed countries. They are aggressive in nature 
who exhibit cleverness in putting attractive possibilities into practice.  
Example: Walt Disney who started huge theme parks such as the Disney Land. 
2.  Imitative Entrepreneur: 
 There is a second group, generally referred as imitative entrepreneurs. They usually copy 
or adopt suitable innovations made by innovative entrepreneurs. They are adaptive and 
more flexible. They are organisers of factors of production rather than creators. The 
imitative entrepreneurs are also revolutionary and important. They contribute to the 
development of underdeveloped economies. Example: The local mobile companies using 
the same technology as big companies to manufacture their products. 
3.  Fabian Entrepreneurs: 
 The third type are the Fabian Entrepreneurs. Such entrepreneurs are very shy and lazy. 
They are very cautious. They do not venture or take risks. They are rigid and fundamental 
in their approach. Usually, they are second generation entrepreneurs in a family business 
enterprise. They follow the footsteps of their predecessors. They imitate only when they 
are sure that failure to do so would result in a loss of the relative position in the enterprise. 
4.  Drone Entrepreneurs: 
 The fourth type is the Drone Entrepreneurs, who refuse to copy or use opportunities that 
come their way. They are conventional in their approach. They are not ready to make 
changes in their existing production methods even if they suffer losses. They resist 
changes. They may be termed as laggards. 
 
21 
Types of Business 
Depending on the nature, size and type of business, entrepreneurs are divided into five 
categories: 
1. Business Entrepreneur: 
 Business entrepreneurs are those who develop an idea for a new product or service and 
then establish an enterprise to materialise their idea into reality. Most of the entrepreneurs 
belong to this category because majority of entrepreneurs are found in the field of small 
trading and manufacturing concerns. 
2. Trading Entrepreneur: 
 Entrepreneurs who undertake trading activities whether domestic or overseas are Trading 
Entrepreneurs. They have to identify the potential market for his product in order to 
stimulate the demand for the same. They push many ideas ahead of others in the form 
demonstration to promote their businesses. 
3. Industrial Entrepreneur: 
 Industrial entrepreneurs essentially manufacture products and offer services, which have 
an effective demand in the marketing. They have the ability to convert economic resources 
and technology into a profitable venture. For example: Enterprises like Hero Motorcorp 
and Hyundai Corporation. 
4. Corporate Entrepreneur: 
 Corporate Entrepreneurs are those who through their innovative ideas and skill able to 
organise, manage and control a corporate undertaking very effectively and efficiently. 
Usually, they are promoters of the undertakings/corporations, engaged in business, trade 
or industry. 
5. Agricultural Entrepreneur: 
 Agricultural entrepreneurs are those who undertake agricultural as well as allied activities 
in the field of agriculture. They engage in raising and marketing of crops, fertilisers and 
other inputs of agriculture through employment of modern techniques, machines and 
irrigation. 
6. Use of Technology: 
 The entrepreneurs may be classified into the following categories on the basis of 
application of new technology in various sectors of the economy. 
(i) Technical Entrepreneur: 
The entrepreneurs who are technical by nature in the sense of having the capability 
of developing new and improved quality of goods and services out of their own 
knowledge, skill and specialisation are called a technical entrepreneur. They are 
essentially compared to craftsmen who concentrate more on production than 
marketing. 
Page 5


 
18 
UNIT 2 
An Entrepreneur 
Learning Objectives: 
After reading the chapter the student will be able to: 
? Differentiate between various types of entrepreneurs 
? Explain  the competencies of an Entrepreneur 
? Understand the meaning  of Ethical Entrepreneurship 
? Appreciate the importance of Ethical Entrepreneurship 
? Highlight the value of ethics to an entrepreneur 
? Understand the values, attitudes and motivation required by an Entrepreneur 
? Differentiate between Entrepreneur and an employee 
? State the meaning and describe the importance of Intrapreneurship in an organisation 
Case Study 
Steve Jobs and Apple 
At 20, he and a friend (Steve Wozniak) started a company in a garage on April 1, 1976. Later that 
year, the duo debuted the Apple I at the Homebrew Computer Club 
in Palo Alto, California. A local store offered to buy 50 machines 
and to finance the production, the duo had to sell their most 
expensive possessions. Jobs sold his Volkswagen van while Wozniak 
sold his Hewlett-Packard scientific calculator. 
Jobs named their company – Apple in memory of a happy summer 
he had spent as an orchard worker in Oregon. 
By 1982 however, his company sales sagged in the face of 
competition from IBM?s new PC. Jobs and Wozniak unveiled their 
new creation, Lisa to increase the company?s bottom line, only to be another expensive failure. 
Not wanting to dwell on these successive failures, they worked on a new machine called the 
Macintosh. Jobs was reported to commandeer the project, ruthlessly pushing its computer engineers 
and flying a pirate flag above the building where the team worked. 
By 1986 the Mac, which Jobs promised to be „insanely great? was a huge success. After 10 years, 
starting from 2 kids working in a garage, Apple computer had grown into a $2 billion dollar company 
with over 4000 employees. 
At 30 Jobs, however, was asked to leave the company he co-founded with Steve Wozniak. He left the 
company after losing a bitter battle over control with Apple?s CEO, John Sculley (whom Jobs had 
recruited from Pepsi Cola). 
 
19 
After Apple 
Apparently both had different views of how the company should be handled and in one meeting 
Sculley had told security analysts that Jobs would have no role in the operations of the company “now 
or in the future.” When Jobs heard of the message he said, “You?ve probably had somebody punch you 
in the stomach and it knocks the wind out you and you cannot breathe. The harder you try to breathe, 
the more you cannot breathe. And you know that the only thing you can do is just relax so you can 
start breathing again.” 
Jobs sold over $20 million of his Apple stock, spent days bicycling along the beach, feeling sad and 
lost, toured Paris, and journeyed on to Italy. 
Recalling this publicly heart-breaking episode Jobs said, 
„I didn?t see it then, but it turned out that getting fired from Apple was the best thing that could have 
ever happened to me. The heaviness of being successful was replaced by the lightness of being a 
beginner again, less sure about everything. It freed me to enter one of the most creative periods of my 
life.? 
During the next five years he started two companies – NeXT Step and Pixar. 
NeXT Step which produces NeXT, a $9,995 cube-shaped workstation, which aimed to create a 
workstation for research and higher, didn?t do as well as Jobs had dreamed for. It did poorly and Jobs 
pulled the plug in 1993. 
Pixar, however was a success story. The company produced the first computer-animated film, the Toy 
Story and when Pixar?s stock went public, Jobs became an instant billionaire. 
Jobs, back with a vengeance 
Meanwhile, his old company, Apple was under immense pressure from rival Microsoft and in 1996 
posted billions of dollars in losses. In December 1996 Jobs convinced Apple to buy NeXT and make its 
software the foundation of the next-generation Mac OS. The technology he developed at NeXT 
became the catalyst of Apple?s comeback. Initially appointed as Apple?s adviser, Steve Jobs was named 
Apple?s interim CEO in 1997. 
In 2004, he was diagnosed with cancer of the pancreas. Jobs was told that the cancer was incurable 
and he would only live for another three to six months. Later, a biopsy showed that he actually had a 
very rare form of pancreatic cancer that is curable with surgery. He had the surgery and survived. 
Under his leadership, Apple returned to profitability and introduced innovations such as the iPod. 
Steve Jobs ’ advice 
“Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept 
me going was that I loved what I did. You’ve got to find what you love.  Your work is going to fill a large 
part of your life, and the only way to be truly satisfied is to do what you believe is great work. 
And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t 
settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just 
gets better and better as the years roll on. So keep looking until you find it. Don’t settle. 
 
20 
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma-which is 
living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your 
own inner voice. And most important, have the courage to follow your heart and intuition. They somehow 
already know what you truly want to become. Everything else is secondary”. 
Types of Entrepreneurs 
Entrepreneurs can be of different types. Some may prefer to go it alone or share the risk in 
groups with others. They are found in every economic system and every form of economic 
activity as well as in other social and cultural activities. They are seen from amongst farmers, 
labourers, fishermen, tribes, artisans, artists, importers, exporters, bankers, professionals, 
politicians, bureaucrats and so many others. Based on the above features C. Danhof has broadly 
classified entrepreneurs into four types. These are discussed below. 
1.  Innovative Entrepreneur: 
In the early phases of economic development, entrepreneurs have 
initiative to start new ventures and find innovative ways to start an 
enterprise. Thus, innovative entrepreneurs are those who introduces 
new products, new methods of production techniques, or discovers a 
new market or a new service or reorganises the enterprise. It is the 
innovative entrepreneurs who built the modern capitalism. They are 
commonly found in developed countries. They are aggressive in nature 
who exhibit cleverness in putting attractive possibilities into practice.  
Example: Walt Disney who started huge theme parks such as the Disney Land. 
2.  Imitative Entrepreneur: 
 There is a second group, generally referred as imitative entrepreneurs. They usually copy 
or adopt suitable innovations made by innovative entrepreneurs. They are adaptive and 
more flexible. They are organisers of factors of production rather than creators. The 
imitative entrepreneurs are also revolutionary and important. They contribute to the 
development of underdeveloped economies. Example: The local mobile companies using 
the same technology as big companies to manufacture their products. 
3.  Fabian Entrepreneurs: 
 The third type are the Fabian Entrepreneurs. Such entrepreneurs are very shy and lazy. 
They are very cautious. They do not venture or take risks. They are rigid and fundamental 
in their approach. Usually, they are second generation entrepreneurs in a family business 
enterprise. They follow the footsteps of their predecessors. They imitate only when they 
are sure that failure to do so would result in a loss of the relative position in the enterprise. 
4.  Drone Entrepreneurs: 
 The fourth type is the Drone Entrepreneurs, who refuse to copy or use opportunities that 
come their way. They are conventional in their approach. They are not ready to make 
changes in their existing production methods even if they suffer losses. They resist 
changes. They may be termed as laggards. 
 
21 
Types of Business 
Depending on the nature, size and type of business, entrepreneurs are divided into five 
categories: 
1. Business Entrepreneur: 
 Business entrepreneurs are those who develop an idea for a new product or service and 
then establish an enterprise to materialise their idea into reality. Most of the entrepreneurs 
belong to this category because majority of entrepreneurs are found in the field of small 
trading and manufacturing concerns. 
2. Trading Entrepreneur: 
 Entrepreneurs who undertake trading activities whether domestic or overseas are Trading 
Entrepreneurs. They have to identify the potential market for his product in order to 
stimulate the demand for the same. They push many ideas ahead of others in the form 
demonstration to promote their businesses. 
3. Industrial Entrepreneur: 
 Industrial entrepreneurs essentially manufacture products and offer services, which have 
an effective demand in the marketing. They have the ability to convert economic resources 
and technology into a profitable venture. For example: Enterprises like Hero Motorcorp 
and Hyundai Corporation. 
4. Corporate Entrepreneur: 
 Corporate Entrepreneurs are those who through their innovative ideas and skill able to 
organise, manage and control a corporate undertaking very effectively and efficiently. 
Usually, they are promoters of the undertakings/corporations, engaged in business, trade 
or industry. 
5. Agricultural Entrepreneur: 
 Agricultural entrepreneurs are those who undertake agricultural as well as allied activities 
in the field of agriculture. They engage in raising and marketing of crops, fertilisers and 
other inputs of agriculture through employment of modern techniques, machines and 
irrigation. 
6. Use of Technology: 
 The entrepreneurs may be classified into the following categories on the basis of 
application of new technology in various sectors of the economy. 
(i) Technical Entrepreneur: 
The entrepreneurs who are technical by nature in the sense of having the capability 
of developing new and improved quality of goods and services out of their own 
knowledge, skill and specialisation are called a technical entrepreneur. They are 
essentially compared to craftsmen who concentrate more on production than 
marketing. 
 
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(ii) Non-technical Entrepreneur: 
 Non-technical entrepreneurs are those who are mainly concerned with developing 
alternative marketing and distribution strategies to promote their business. They are 
not concerned with the technical aspects of the product and services they are dealing 
with. 
7. Professional Entrepreneurs: 
 Professional entrepreneurs make it their profession to establish business enterprises with a 
purpose, to sell them once they are established. He/she is always looking forward to 
develop alternative projects by selling the running business. He/she is not interested in 
managing operations of the business established by him. He/she is very dynamic. 
8.  Motivation: 
 Based on their motivating factors, entrepreneurs can be classified into three types such as 
spontaneous, induced and motivated entrepreneurs. 
(i) Spontaneous Entrepreneurs: 
Spontaneous Entrepreneurs are otherwise known as pure entrepreneurs, who are 
motivated by their desire for self-fulfilment and to achieve or prove their excellence 
in job performance. They undertake entrepreneurial activities for their personal 
satisfaction in work, ego, or status. Their strength lies in their creative abilities. They 
are the natural entrepreneurs in any society. They do not need any external 
motivation. 
(ii) Induced Entrepreneurs: 
Induced entrepreneurs enter into entrepreneurship because of various governmental 
supports provided in terms of financial assistance, incentives, concessions and other 
facilities to the people who want to set up of their new enterprises. Sometimes 
prospective entrepreneurs are induced or even forced by their special circumstance, 
such as loss of job or inability to find a suitable job according to their talent and 
merit to adapt to entrepreneurship. 
(iii) Motivated Entrepreneurs: 
 Motivated Entrepreneurs are motivated by their desire to make use of their technical 
and professional expertise and skill in performing the job or project they have taken 
up. They have enough confidence in their abilities. They are highly ambitious and 
are normally not satisfied by the slow progress in their jobs. They enter 
entrepreneurship because of the possibility of making and marketing of some new 
products or service for the use of the prospective consumers. If the product or 
service is developed to a saleable stage and the customers accept the same, the 
entrepreneur is then further motivated by reward in terms of profit.