Different Types of Entrepreneurial Ventures and Their Relation to Typology of Entrepreneurship

UNIT 9
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Differentiation between types of entrepreneurial ventures and their relation to typology of
entrepreneurship.....................................................................................................................1
2. Similarities and differences between entrepreneurial ventures..........................................2
3. Statistical Data representing micro and small businesses impact on economy..................6
4. Importance of small businesses and business start –ups which will contribute to the growth
of the social economy after ‘Brexit........................................................................................8
5. Determining the characteristics, traits and skills of two successful entrepreneurs which
differentiate them from other business manager....................................................................9
6. Few practical examples which is essential in examining about background and experience
that hinder and foster entrepreneurship................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneur has an innovative idea of establishing business; they develop products and
services according to the requirement of customers. They aim at maximising profits and
minimising the operations in order to operate in economies of scale. Micro, small and medium-
sized enterprise covers large part economy. This report discusses about types of entrepreneurial
ventures and their relation to typology of entrepreneurship. Firms perform all activities which are
essential for establishing good brand name.
Further this report covers the topic importance of small businesses
and business start –ups which will contribute to the growth of the social economy after ‘Brexit”,
characteristics, traits and skills of two successful entrepreneurs which differentiate them from
other business manager. Jeff Preston Bezoz is American technology entrepreneur, investor and
philanthropist which was born on 12 January, 1964 in New Mexico. He is the founder and
chairmen of Amazon. Jack Ma Yun is founder and CEO of the Alibaba group. He completed
graduation from Hangzhou Normal University (BA) and post-graduation from Cheung Kong
Graduate School of Business (MBA). End of the report discuss about background and experience
that hinder and foster entrepreneurship.
1. Differentiation between types of entrepreneurial ventures and their relation to typology of
entrepreneurship
Entrepreneurial ventures: It can be defined as a start-up entity which is concerned with
the growth and profits. Businessmen invest their money in order to gain financially and develop
themselves. They undertake various activities which are essential in fulfilling the requirements of
customers. Entrepreneur develop idea and products to satisfy the needs of potential buyers and
improve the existing services (Brenkert, 2017).
Different types of entrepreneurial ventures are as follows.
Small business: it can be defined as a company employing less than 50 employees and
with limited amount of turnover. It is privately owned and managed by the individuals, it has
close control over the decision-making process and the operation of business. They do not have
enough funds to get their company registered, government provide them preferential tax benefits.
They offer innovative products and services in order to capture large market share. For example,
grocery stores, bakeries, hair dressers etc (Scarborough, 2016). This is for example, Palm 2
grocery store in UK.
1

Medium size business: Small scale business gradually grow and develop themselves and
results in a medium business. If an organisation earns more revenue, then it invests money in
expanding their operations, development of buildings and equipment’s. Eventually the gap
between small and medium size business widen. For example, furniture, garment factory,
clothing etc. This is for example, Verco, dealing with furniture’s in UK.
Micro business: it is defined as enterprise which operates on a very small scale
employing less than 9 people. Business is financed by microcredit which is a common term used
by entrepreneurs. They earn to serve their family and provide them living, micro business does
not expand their business because of limited amount of funds they have. For example, Weaving,
dying industries, etc (Kierzenkowski, Pain, Rusticelli and Zwart, 2016). This is for instance the
Bristol Weaving Mill and Gainsborough, situated in UK.
Typology of business
Social business: This type of organisation is designed to resolve the social issues of the
society, it is financial stable. Profits earned by business are reinvested for the growth and
development of social welfare by subsidizing the products, manufacturing of quality products. It
is not dependent upon the grants provided by private or public organisation. It focuses on
eliminating or reducing the poverty by providing them with valuable services. In order to
maintain financial and economic sustainability they deal with environmental consequences. This
is for instance, Oxfam, operating as an NGO in UK.
Large organisation: Large organisation is termed as a business which can hire 250 or
more employees. There main objective is to maximise profit and expand operation overseas to
capture market share. Activities consist of large transactions which are essential in achieving the
goals and mission of business. For example, Apple, Google, General motors, etc (Suddaby,
Bruton and Si, 2015).
Scalable business: Scalable business has greater opportunity of expanding their
operations without affecting its operation cost. Entrepreneur focus on increasing their revenue
and income, thus by minimising the expenses which are incurred in the process. Scalable
business is essential in achieving the valuable target relatively short duration (Ford and
Goodwin, 2017).
2. Similarities and differences between entrepreneurial ventures
Similarities
2