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How do opportunity entrepreneurs differ from necessity entrepreneurs? 


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What do you say - How do opportunity Entrepreneurs differ from necessity entrepreneur? 

Imagine being a senior bureaucrat in planning commission which is formulating a policy for addressing the mentoring and credit needs of micro-entrepreneurs.  

Would your policy be targeted towards opportunity entrepreneurs or Necessity Entrepreneurs or both? If both, how and why?  

Experience indicates that needs, personalities, traits, behavior, habits and abilities of opportunity entrepreneurs differ significantly from that of necessity entrepreneurs. In fact, both can be categorized as opposites. One standard policy cannot and should not target both at one go. Let’s delve deeper into differences – 
Appetite for risk and leverage

Opportunity entrepreneurs have significantly higher risk appetite than necessity entrepreneurs. By nature, opportunity entrepreneurs are adept at taking calculated risks driven by intuition while necessity entrepreneurs are averse to uncertainty and risk.
Opportunity entrepreneurs also have high propensity for leverage. They do not mind taking heavy debt for growth and achieving their ambitions. On the other hand, necessity entrepreneurs are averse to leverage. 

Largeness of vision and predictive capability
Opportunity entrepreneurs are known for large vision and ‘the need to achieve’. They are driven individuals with ambitions to scale and grow steadily: from 0 --> X, from X--> X++ and from X --> Y. On the other hand, necessity entrepreneurs are typically satisfied with either a chance to marginally exploit the high season or the status quo.
Opportunity entrepreneurs also have sophisticated intuition of predicting the size of market and therefore, the opportunity. Necessity entrepreneurs on the other hand go by very rational  approach of surviving the competition.
Openness to innovation

Opportunity entrepreneurs have high propensity for innovation which pushes the market forward. On the other hand, necessity entrepreneurs are best manifestations of ‘herd behavior’. Necessity entrepreneurs don’t like to experiment/ innovate and are more comfortable in following the already established models.
What do you say - How do opportunity entrepreneurs differ from necessity entrepreneurs? 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
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How do opportunity entrepreneurs differ from necessity entrepreneurs? 


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