In under developed countries local mobile phone companies use the same technology used by big companies to manufacture their products. Which of the following type of Entrepreneurs is highlighted above:
Options:
| A. Trading Entrepreneurs B. Imitative Entrepreneurs C. First generation Entrepreneurs D. Innovative Entrepreneurs |
The Correct Answer Is:
B. Imitative Entrepreneurs
The correct answer is B. Imitative Entrepreneurs.
Imitative entrepreneurs are individuals who observe existing technologies, products, or business models and replicate them in their local markets or underdeveloped countries. In the scenario described, local mobile phone companies in underdeveloped countries are using the same technology used by big companies to manufacture their products.
This exemplifies imitative entrepreneurship because these local companies are essentially imitating the technology and products already established by larger, more developed firms.
Imitative entrepreneurs play a crucial role in economies, particularly in underdeveloped regions. By emulating established technologies and business models, they facilitate the dissemination of knowledge and stimulate economic growth.
In the context described, these entrepreneurs demonstrate adaptability and resourcefulness by leveraging existing technologies to create products that meet local demand. While they may not be the originators of the innovations, they contribute to the accessibility and affordability of these products within their communities.
This form of entrepreneurship bridges the technological gap between developed and underdeveloped regions, ultimately fostering progress and development. Through their efforts, imitative entrepreneurs demonstrate that innovation is not solely about creating something entirely new, but also about effectively utilizing existing knowledge to bring about positive change.
Why the Other Options are Incorrect
Let’s discuss in detail why the other options (A. Trading Entrepreneurs, C. First generation Entrepreneurs, and D. Innovative Entrepreneurs) are not the correct answers:
A. Trading Entrepreneurs:
Trading entrepreneurs are primarily involved in buying and selling goods and services. They act as intermediaries in the distribution process, facilitating the movement of products from manufacturers to consumers. They may engage in activities such as wholesaling, retailing, and distribution.
In the scenario described, the local mobile phone companies in underdeveloped countries are not primarily engaged in buying and selling mobile phones; instead, they are involved in the actual manufacturing process.
They are likely sourcing raw materials, assembling components, and producing the final products. This goes beyond the scope of trading entrepreneurship, as it involves production rather than just trade.
C. First-generation Entrepreneurs:
First-generation entrepreneurs are individuals who are the first in their families to start a business. This term is more related to the family or generational aspect of entrepreneurship rather than the nature of the business activities.
In the scenario, there is no information provided about the family background or generational status of the entrepreneurs. The focus is on their approach to technology and product development. Whether they are first-generation entrepreneurs or not is not relevant to the situation at hand.
D. Innovative Entrepreneurs:
Innovative entrepreneurs are known for introducing new and novel ideas, products, or services to the market. They are often at the forefront of technological advancement and bring something entirely new or disruptive to their industry. They thrive on creativity, originality, and pushing the boundaries of what is currently available.
In the scenario, the local mobile phone companies in underdeveloped countries are not introducing something entirely new or innovative. Instead, they are replicating existing technologies used by big companies. While they are certainly contributing to their local markets and economies, they are not pioneering a new technological frontier.
To summarize, the situation described in the question aligns with imitative entrepreneurship because it involves replicating existing technologies and products rather than introducing something innovative or disruptive.
This approach is common in underdeveloped countries where local businesses may lack the resources or expertise to create entirely new technologies, leading them to imitate established models to enter the market
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