Entrepreneurial Ventures: Types and Impact on the Economy

This article discusses the different types of entrepreneurial ventures, including social entrepreneurship, corporate entrepreneurship, scalable startups entrepreneurship, and small business entrepreneurship. It also explores the impact of small businesses on the economy, such as job creation, innovation, and economic growth.

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ENTREPRENEURIAL VENTURES
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1.0 Entrepreneurial Venture
Venture can be defined as an undertaking involving both chance and risk e.g. a
speculative business enterprise. It is developed with the aim of making a profit.
Entrepreneur- is a person who comes up with a business idea and ventures into it using
his/her resources with the aim of making a profit. He is responsible for all the risks associated
with the business.
The entrepreneurial venture is a business or an organization that critically puts innovation
and opportunities into consideration in order to enhance economic growth and social value. Its
main focus is on coming up with a new product to satisfy a given market and not necessarily
dealing with existing products (Jiang et al. 2018).
1.1 Types of Entrepreneurial Ventures
There are several types of business ventures (Morris et al. 2018). Discussed below are
some of the business ventures that can be considered entrepreneurial;
1.1.1 Social Entrepreneurship
This is a situation where start-up companies and other entrepreneurs are used in the
development, financing and putting solutions into practice for social, cultural and environmental
issues. Social entrepreneurship can be categorized into two; social entrepreneurs who view
performance in the form of improvement of the welfare of the involved community and for-profit
entrepreneurs who view performance in terms of profits, revenues and increased stock prices.

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Social entrepreneurship strives to achieve social, cultural and environmental goals in such areas
as health care, alleviation of poverty and community development. It mainly depends on
volunteers.
1.1.2 Corporate Entrepreneurship
This is the process of coming up with new ideas and opportunities within established
companies with an aim of improving profitability and the competitive position of an organization
or renovation of strategies of an existing business. Innovation is a very important factor in
corporate entrepreneurship since the two can really help in taking calculated and beneficial risks.
Corporate entrepreneurship has a significant effect on competition and can also lead to the
creation of new industries (Kazanjian, Drazin, & Glynn, 2017).
Corporate entrepreneurship makes risk-averse companies be risk-takers by making them
more innovative. This helps in driving leaders and subordinates towards an increased level of
corporate brilliance.
It also leads to organizational renewal since it drives the company to venture into new
ideas. The company is able to improve technologically, administratively and also its products
and processes are improved. This, in turn, makes the company be more competitive.
1.1.3 Scalable Startups Entrepreneurship
A scalable startup involves innovating an idea and looking for a scalable and repeatable
business model that will turn it into a large profitable corporation. The corporation does that by
entering into a large market and taking a share of it from the present players in the market or
creates a new market and devices ways to make it grow rapidly (Holmen et al. 2015).

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A startup requires external capital for it to create market demand and scale thus founders
have to convince investors that the venture is viable. They also have to hire the services of
skilled employees who help in winning early customers.
1.1.4 Small Business Entrepreneurship
Small businesses are privately owned businesses that generate low annual revenue and
have fewer employees when compared to larger businesses or corporations (Burns, 2016). They
take the form of sole proprietorships, partnerships, and corporations. The main point of
measurement taken into consideration when classifying small businesses is the number of
employees although there are a number of parameters that can also be considered including
annual revenues, a number of shipments done, net profit, sales and assets owned by the business
(Schaper et al. 2014).
Small businesses are started by entrepreneurs whose intentions are not to make the
venture grow into a big business one day. They are content with the way things are so long as
they can earn a living and serve their local community. The founders do not necessarily aim at
doing things differently but are likely to do what others are already doing.
1.0 Impact of Small Businesses on the Economy.
Small businesses are the engines of growth and they have a vital impact on the success of
a given economy. For example, in UK small businesses and medium enterprises are the
backbone of the economy, According to research, it was discovered that they provided 50% of
employment opportunities between 20002 and 2008.
Small businesses influence the economy in the following ways:

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 Innovation- small businesses are usually involved with coming up with new ideas
of doing things or improving on existing ones. By so doing, better methods of
carrying out specific activities may be invented.
 Job opportunities- small businesses create employment opportunities which help
in improving peoples living standards. The jobless individuals who could not’
afford anything can earn some income out of the venture making their lives much
more comfortable since they can now afford whatever they want by making use of
the earned income.
 Independence- as a result of people being employed, they will earn income which
will make them financially independent. The earned income puts people to afford
most of the things they require which makes them less dependent on other
employed individuals.
 Development- small businesses have greatly lead to the development of rural
areas where most of them are located. Consumers who buy from these small
businesses pay lots of local taxes which in turn can be used in the building of new
social amenities and improving existing ones. This is of great advantage to the
economy at large.
 Future growth- almost every large corporation started off as a small venture. They
have since grown to become large corporations which lead to the growth of the
economy on a larger extent
 They help in the utilization of idle resources- small businesses often make use of
locally available resources ranging from human to natural resources which have

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not been explored before. By putting these resources into practice, they lead to the
total growth of the Gross Domestic Product.
 Economic growth- by utilizing locally available resources, small businesses make
available to the local and international markets which save the country revenue
that would have been used in the importation of similar products and also
generates revenue to the government in form of taxes on both exports and locally
sold products (Doppelt, 2017).
References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.

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Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Holmén, M., Berglund, H., Björkdahl, J., Mansoori, Y. and Sjölander, S., 2015. Entrepreneurs
Searching for Scalable Business Models: The Barriers of the Customer Development Process.
In Australian Center for Entrepreneurship Exchange (ACERE) 2015, 3-6 February 2015,
Adelaide Australia (pp. 396-411). Queensland University of Technology.
Jiang, H., Cannella, A.A. and Jiao, J., 2018. Does desperation breed deceiver? A behavioral
model of new venture opportunism. Entrepreneurship Theory and Practice, 42(5), pp.769-796.
Kazanjian, R.K., Drazin, R. and Glynn, M.A., 2017. Implementing strategies for corporate
entrepreneurship: A knowledge‐based perspective. Strategic entrepreneurship: Creating a new
mindset, pp.173-199.
Morris, M.H., Neumeyer, X., Jang, Y. and Kuratko, D.F., 2018. Distinguishing Types of
Entrepreneurial Ventures: An Identity‐Based Perspective. Journal of Small Business
Management, 56(3), pp.453-474.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.