Solution:

(1). Innovating entrepreneurs:

• Innovative entrepreneurship is characterized by an aggressive assemblage of information and the analysis of results derived from a sound combination of factors.

• Persons of this type are generally aggressive in experimentation and cleverly put attractive possibilities into practice.

• An innovating entrepreneur sees the opportunity for introducing a new technique or a new product or a new market. He or she may raise money to launch an enterprise, assemble the various factors, choose top executives and set the organization going.

• Schumpeter’s entrepreneur was of this type. Such an entrepreneur introduces new products and new methods of production, opens new markets, and re-organizes the enterprise. Among the different types of entrepreneurs, the innovating entrepreneur is the most vigorous type of entrepreneur.

• Innovating entrepreneurs are very commonly found in developed countries. There is a dearth of such entrepreneurs in underdeveloped countries. A country with little or no industrial tradition can hardly produce innovative entrepreneurs.

• Such entrepreneurs can emerge and work only when a certain level of development is already achieved and people look forward to changing and progressing.

• Innovating entrepreneurs played a key role in the rise of modern capitalism through their enterprising spirit, the hope for money-making, the ability to recognize and exploit opportunities, etc.

(2). Adoptive or imitative entrepreneurs:

• These kinds of entrepreneurs are characterized by a readiness to adopt successful innovations created by innovative entrepreneurs. These types of entrepreneurs are revolutionary entrepreneurs with the difference that instead of innovating the changes themselves, they just imitate the technology and techniques innovated by others.

• These entrepreneurs are most suitable for developing countries because such countries prefer to imitate the technology, knowledge, and skill already available in more advanced countries. The Cochin Shipyard is a good example of the result of imitative entrepreneurship.

• In highly backward countries there is a shortage of imitative entrepreneurs also. People who can imitate the technologies and products of the particular conditions prevailing in these countries are needed.

• Sometimes, there, is a need to adjust and adapt the new technologies to their special conditions. Imitative entrepreneurs help to transform the system with the limited resources available.

• However, these entrepreneurs face lesser risks and uncertainty than innovative entrepreneurs. While innovative entrepreneurs are creative, imitative entrepreneurs are adoptive. Imitative entrepreneurs are also revolutionary and important.

• The importance of these humbler entrepreneurs who exploit possibilities as they present themselves and mostly on a small scale must not be under-estimated. In, the first place, such adaptation requires no mean ability.

• It often involves what has aptly been called subjective innovation which is the ability to do things that has not been done before by the particular industrialist, even though, unknown to him, the problem may have been solved in the same way by others.

• By western standards, an imitative entrepreneur may be a pedestrian figure, an adopter and imitator rather than a true innovator. He is more an organizer of factors of production than a creator.

• But in a poor country attempting to industrialize, he is nevertheless a potent change-producing figure. He can set in motion the chain reaction’ which leads to cumulative progress.

• This humbler type of entrepreneur is important in underdeveloped countries for another reason. These countries are placing great emphasis on their economic planning on small-scale industries and decentralized industrial structures.