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Know the entrepreneurs around you better


Transforming Micro Financing 24X7
Unsecured loans to 'no-file' micro enterprises

Know the entrepreneurs around you better 

Imagine standing at the doorstep of bakery shop owner named Ashok Kumar in a semi-urban market on a state highway in India. Ashok has been running the shop for three years and has clocked an average daily sale of ₹ 2500.

Can we call him an entrepreneur? If yes, what type of entrepreneur? How do we quantify the inherent risk from perspective of a lender? 

Extensive research indicates that people like Ashok can be classified into either an opportunity entrepreneur or a necessity entrepreneur. 
Opportunity vs Necessity entrepreneur

Opportunity entrepreneurs are driven for scale and are motivated to take leverage to fuel their ambitions. They can often be found talking about growth, making plans, learning new practices and willing to take bigger risks. 
On the other hand, necessity entrepreneurs do business out of necessity. They are satisfied with status quo and are averse to taking loan. They can often be found stocking meager inventory, struggling to survive, making both ends meet and shunning risk.


At a first glance, one may not be able to distinguish between an opportunity entrepreneur and a necessity entrepreneur. However, by delving deeper and making following observations – Whether the entrepreneur is doing business out of necessity or out of drive? Whether the shop is understocked or overstocked? Whether the size of the shop has grown over-time? Whether the entrepreneur has taken loan to fund the growth? Whether entrepreneur has learned and adopted business best practices? Whether entrepreneur has dreams of further scaling up the business? – one can classify a person into an opportunity entrepreneur or a necessity entrepreneur. 

Opportunity entrepreneurs carry higher risk than a necessity entrepreneur, from lender's perspective.
What do you say - What are different kinds of entrepreneurs and associated risks? We would love to hear your feedback.
About Us: IMV facilitates loans to MSME and small scale industries in India through partner microfinance institutions, NBFCs and SFBs. IMV’s sister concern, Enable Livelihoods Foundation which is a social enterprise, has vast experience of working in space of rural development, skill development and social entrepreneurship. The founders, themselves being social entrepreneurs in India, have authored several publications on microenterprise and entrepreneurship.  

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Pranay Bhargava
CEO & Founder
[email protected]
+91 9848748364

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This post first appeared on Impactmicroventures, please read the originial post: here

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Know the entrepreneurs around you better


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