Entrepreneurial Venture: Types of Entrepreneurship and Impact of Small Enterprises on Australian Economy

This report discusses the types of venture entrepreneurship which can be considered as entrepreneurial. It further discusses the four types of entrepreneurship which are small-scale entrepreneurship, scalable entrepreneurship, private entrepreneurship and public entrepreneurship. The second part of the report focuses on the impact of small enterprises on the economy of the country, with a specific focus on Australia. The report highlights the importance of small businesses for the economic growth of Australia as they provide employment to a large number of people as well as work experiences due to which the productivity of workers increases.

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ENTREPRENEURIAL VENTURE

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................4
LO1............................................................................................................................................4
LO2............................................................................................................................................5
CONCLUSION......................................................................................................................7
REFERENCES...........................................................................................................................8
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List of Figures
Figure 1: Proportion of SME Australian firms (2014-15).........................................................6
Figure 2: Graph representing proportionate of employees in Australian relating to SMEs and
Large Firms................................................................................................................................7
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INTRODUCTION
Entrepreneurial Ventures can be referred to as an organization which believes that innovation
and opportunism is the main core in order to develop economic and social value (Kuratko,
Hornsby and Hayton, 2015). Entrepreneurs play a vital role in contributing economic
development as it believes in creative problem-solving methods. Present report emphasis on
the types of venture entrepreneurship which can be considered as entrepreneurial. Further, the
four types of entrepreneurship which are discussed below are small-scaleentrepreneurship,
scalable entrepreneurship, private entrepreneurship and public entrepreneurship. The second
part of the report focuses on the impact of small enterprises on the economy of the country.
LO1
An entrepreneur is an individual who organizes, manages and predicts the risk of an
enterprise or organization (Hechavarría and Welter, 2015). The further entrepreneurial
venture is the one which operates in accordance with at least one of the category of behaviour
specified by Schumpeter which comprises the principal of the main objective of an
organization,i.e. profitability and growth and the main character of the business,i.e.
innovative strategic practices. Further, corporate organizations are not held by the
government property contrasting to businesses under public sector, which is listed as
government property and offers government-oriented services.
Scalable Start-up Entrepreneurship Ventures: These ventures commence business
knowing from one day that their idea can make alterations in the world. As per the study of
Hechavarría and Welter(2015), they draw investment evenly from a potential investor that is
venture capitalists. In addition to this, they employ the sources in the optimum manner. The
successful examples of scalable start-up enterprenursip are Online Shopping for electronics,
computers, DVD such as Ebay. The scalable business can enhance the revenues to sky high
without application of high additional cost. The reason behind same is that it considers
required quantum of focus on internal and external locus of control as the specified variants
and significantly assessed in case of entrepreneurship (Kuratko ,2016). These entrepreneurs
play a vital role in analysing the success of the vision in typology of entrepreneurship. For
same reason they attempt to attract innovative financial investors i.e. venture capitalist so that
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they can hire the best and brightest. After ascertaining the same they emphasize on
requirement of scale and capital so that appropriate fuel can be attained for rapid expansion.
Corporate Entrepreneurship Venture: It has limited life cycles. Many of the private
companies believed who believed in continuous innovation and provided new items which
are alternatives around their main products. Furthermore, change in preferences of
consumers, latest technologies, legislation, new rivalries and so on could build stress for more
disrupting innovation which entails large firms to create completely new items sold into new
consumers in fresh markets or new areas. The concept of corporate entrepreneurship is based
on an organization rather than an individual or development of single procedure or
practice. .Satirically, it is difficult to implement disrupting innovation. The reason behind
same is private companies and its culture. For instance as in the case of Gore-Tex fabric
which is a multinational company famous for manufacturing materials copied from flour
polymers. This is handled privately in Newark, Delaware, where the headquarters of the
companies are located. W.L Gore provides workers 10% of their work day in order to
develop their proposals and work on their personal projects. Thus, corporate entrepreneurial
organization tend to be more participative and encourage enhanced personnel specialized
training in comparison to conservative organization. This kind of entrepreneurship has
positive effect on typology of entrepreneurship. The reason behind same is that it works on
concept of participative concept rather that development through unilaterally by top
management.
Public Entrepreneurship: As per the study of Leyden (2016), public entrepreneurship can
be cited as the proclamation inclusive of pioneering public policy initiatives which produces
superior prosperity to the economy through providing a status-quo economic environment.
The example of this type of entrepreneurship venture is 3M Company which is famous for its
devotee line of products like masking tape. Waterproof sandpaper, and Scotch brand tapes.
As it is a public sector enterprise since they vend shares in the stock market. The main reason
behind call of enterpreneurship in pulic sectior is based on dramatice turbulence of external
environment. This turbulence have impact on both public as well as provate sectors. Due to
same reason public as well as corporate enterprenurship has been main variants of
enterprenuership typology. Previous a rigid heirarchical structure was followed in the public
organizaiton but with public enterpreneurship centralized decesion making system has been
followed in order to manage the work as well as for static technology. Public sector
enterpreneurialsim was responsible for cutbacks and fiscal constraint. Further, it was also
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assessed that corporitasationa and application of private sector strategies lead to expand more
ways for growing in immense manner for enterpreneurial public sector management.
However, the fact cannot be be denied that variants which foster corporate enterpreneurship
in public sector are not same from the variants which boost up corporate enterpreneurship in
private sector.
LO2
According to Burns (2016), small enterprises are privately owned companies, partnership or
solitary proprietorship which has some workers or less revenue in comparison to regularly
sized corporations. Business is classified as small in the context of being capable of applying
for support of government and quality for preferential tax policy differs relying on the
country and diligence. Further, they represent a significant proportion of any economy.
The fact cannot be denied that small business had contributed to Australian Economy in
significant manner, though same require facing variety of operational challenges and having
high rate of failure. Small business comprises the overwhelming majority of firms in virtually
every industry. As in almost ninety two to ninety five percent organizations have 10-12
employees. Due to same reason they are considered as the main source of employment in
Australia. Further, small enterprises are more labour intensive in comparison to capital
intensive (Healy,Mavromaras and Sloane 2015). In this overall ninety five percent, most of
the businesses are micro business in which in which almost two-third have non employees.
Another way through which contribution of small business can be evaluated is assessing their
role in providing goods and services to the regional areas, where even large business
organization cannot initiate. For instance large super market is not usually established in
small town; however a small business can be developed at any place. Small business has also
contributed through innovation, as almost 85% of these organization are engaged in
innovative activity are is affecting economy overall at national level.
As per study of Motilew, et.al (2015), it was reported by ACCI that is Australian Chamber
Commerce and Industry, competitive and commercial strength of small and medium
enterprises (SMEs) are important for maintaining Australia’s economic future since the level
of growth in big companies has been secured with reorganizing more in support of
organisations which are medium and small and the utilisation of proficient skills.
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Figure 1: Proportion of SME Australian firms (2014-15)
(Source:Mazzarol, 2016)
In addition to this, in Australia, the sector of SME provides the potential for research
opportunities in order to advance the information related to the significant business sector.
Apart from this, with accordance to Storey (2016), generally SMEs are more credit restrained
in comparison to that of big companies in the economy because of financial sector policy
deformations as well as deficiency of know-how on the part of the bank. Moreover, the RBA
founds that small business are responsible for about half of all jobs outside of the financial
sector. Small enterprises employ the workers who are less-trained as well as who have no
work experience thus with the assistance of same an opportunity is available to resolve social
problems. The same can provide benefit to social economy of Australia in two manners. First,
small companies provide employment to individuals who might find difficulties in protecting
the job, thus decreasing the period of transitional unemployment amongst these people. The
second benefit is that employment given to individuals will enhance their efficiency by
providing them on-the-job-training along with the work experience as these are hired with no
prior work experience.
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Figure 2: Graph representing proportionate of employees in Australian relating to SMEs and
Large Firms
(Source: Mazzarol, 2016)
Small organisations have less-diffused ownership; a less intricate structure of the
organisation, as well as the proprietor, involves more in the administration of the company.
The same will results in increased efficiency of employees and income of the company as the
executives are focussing more and more on the activities of workers. It leads to availability of
chance for backward people to improve their standard and level of work as well. Thus, SME
provides great assistance in enhancing the growth rate of social economic development of
Australia.
CONCLUSION
It can be concluded from the above study that entrepreneurship venture focuses on innovation
and methods of implementing same in their business. Further, small business is very
important for the economic growth of Australia as it provides employment to a large number
of people as well as work experiences due to which the productivity of workers increases.
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REFERENCES
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Healy, J., Mavromaras, K. and Sloane, P.J., 2015. Adjusting to skill shortages in Australian
SMEs. Applied Economics, 47(24), pp.2470-2487.
Hechavarría, D.M. and Welter, C., 2015. Opportunity types, social entrepreneurship and
innovation: Evidence from the panel study of entrepreneurial dynamics. The International
Journal of Entrepreneurship and Innovation, 16(4), pp.237-251.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Kuratko, D.F., Hornsby, J.S. and Hayton, J., 2015. Corporate entrepreneurship: the
innovative challenge for a new global economic reality. Small Business Economics, 45(2),
pp.245-253.
Leyden, D.P., 2016. Public-sector entrepreneurship and the creation of a sustainable
innovative economy. Small Business Economics, 46(4), pp.553-564.
Mazzarol, T.,2016. Small business isn’t just important to the economy it IS the economy.
[Online]. Available through <https://cemi.com.au/node/9092>. [Accessed on 2nd October
2018]
Motilewa, D.B., Worlu, R.E., Ogbari, M.E. and Aka, D., 2015. A review of the impacts
SMEs as social agents of economic liberations in developing economies. International
Review of Management and Business Research, 4(3), pp.903-914.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
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