Entrepreneurship and Its Aspects of Newly Created Business Environment

ENTREPRENEURSHIP AND ITS ASPECTS OF NEWLY
CREATED BUSINESS ENVIRONMENT
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Table of contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
Lo2. Impact of All Business On Economy......................................................................................5
TASK 3............................................................................................................................................9
Lo3. Key aspects of an entrepreneurial mindset..............................................................................9
TASK 4..........................................................................................................................................11
Lo4. Different Environments That Can Hinder or Foster Entrepreneurship.................................11
Reference list.................................................................................................................................13
Appendices....................................................................................................................................14
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INTRODUCTION
Entrepreneurship is an aspect of business that deals with designing, developing and running a
small business. Entrepreneurship is playing a great role in business development from the 21st
century. There are some major impacts of entrepreneurship on the global economy but still, it is
an argumentative matter of fact. Introduction of entrepreneurship is designed to discuss the roles
and importance of entrepreneur in our society (Autio et al. 2014). Many countries have been
supporting entrepreneurship so that they can reduce sustainable poverty and the results show it is
actually beneficiary for economic growth. This unit will further discuss the scope of
entrepreneurship and also illustrated the barriers of business start-up. This assignment will
further discuss the balance of risk and reward of starting a new venture.
TASK 1
Lo1. Illustrating the Range Of Venture Types
P1 Examining Different Types of Entrepreneurial Ventures and Explanation Of How They
Related With Typology Of Entrepreneurship
Entrepreneurial ventures are mainly focused on providing services to the mid-stage and the
early-stage organizations. They also work with troubled companies to fix their problem and they
also help the company to reinforce in their business model. The role of entrepreneurial ventures
varies from company to company. Most of the time, the entrepreneurial ventures set their goal
considering the stage and size of the organization. Entrepreneurial ventures took an active role in
strategy development, implementation of plan and networking so that the small organizations can
grow and make maximum profit (Choi and Majumdar, 2014).
Entrepreneurs are the responsible person who creates entrepreneurial ventures. The main goal of
the organization is to make maximum profit and take maximum share in the marketplace.
There are mainly four types of entrepreneurial ventures exist. These are:
Small business entrepreneurship:
Small business organizations are mainly independently owned and operate on profitable
organizations. The goal of such organization is to grow their business in a long-term business.
They are also looking to making their business more profitable and sustainable. Restaurants,
agriculture, retail stores are under small business entrepreneurship. Banks, friends or family
members are mainly capital providers of such business. They invest in the company so that the
company can make maximum fund to run their business for a long time period (Ibrahim and
Lucky, 2014). Small companies also generate payroll taxes and they provide jobs but the number
of staffs hired by this company is comparatively small.
➢ Scalable start-up entrepreneurship
Scalable start-up companies are not like small business company, they make their
business in such a way so that they have the ability to change the whole world. The investors and
the employees of the company are knowledgeable enough about their goal and key
responsibilities. They tend to hire the brightest candidate for their company, as it is important
that the candidate should know about the vision and mission of the company. The main role is to
search for a repeatable and scalable business plan (Karadag, 2015).
Large company entrepreneurship
Large companies work under finite life cycle. As the large companies are facilitated with
funds from different investors, it is easy for them to grow with sustain innovation. Moreover,
they offer a large number of services and products to their customers. They have a large number
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of employees. The aim of companies is to generate sustainable revenue and profit for their
company. Mainly corporate companies are under large company entrepreneurship.
Social entrepreneurship
Social good enterprises have the desires to make the world better place by providing their
services to the people. They aim to serve the maximum people by maximizing impact in a
sustainable way. This type of companies mainly dealt with global health organizations and the
companies who are working with a philanthropic mission for development of countries. The
entrepreneurs of this type of organization are capable to make improvement in life of people.
P2 Exploring the Similarities and Differences between Entrepreneurial Ventures
Key similarities in between the different ventures are as follows-
● Discovery and exploitation of business opportunities
● Implementation of new procedures and marketing strategies in order to gain maximum
profit (Kuratko et al. 2015)
● Making their business sustainable and profitable
● Offering new products and services
● Satisfying the customers by making plans for improvement
● Most of the organizations are based on economic rationality
Key differences between the different types of entrepreneurial ventures are-
Social
entrepreneurship
Small business
entrepreneurship
Scalable start-up
entrepreneurship
Large company
entrepreneurship
High personal risk
and the company
faced with high
tolerance risk too
Personal risk is too
high
Personal risk is
comparatively less
than small companies
Corporate risk
Maximize impact to
make sustainable
business
Goal is to make a
long-term business
Making long-term
business plan to run
the business
Generating maximum revenue
for their company
Depends on the size
and type of the
company
Providers: bank
loans, friends, family
members
Founder of the
company,
shareholders
Revenue, subsidiaries
Global healthcare
organizations
Retail companies,
agriculture,
restaurants
One- person firms Corporations
Table 1: Key differences between the different types of entrepreneurial ventures
(Source: Kuratko, 2016)
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