An interesting distinction about types of entrepreneurs is the one proposed by the author Clarence Danhof, which classified entrepreneurs into four groups based on economic development. He based his classification on his study of American agriculture, and he observed that entrepreneurs could be classified depending upon the level of willingness to create innovative ideas; so there can be the following types of entrepreneurs:
- Innovative: an aggressive assemblage and synthesis of information and the analysis of results deriving from new combination of factors of production characterize this type of entrepreneurship. These entrepreneurs have the ability to think newer, better and more economical ideas of business organization and management.