ESBM Table of contents Page 2 of 14 Entrepreneurship

ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT (ESBM)

Table of contents
Page 2 of 14

Entrepreneurship is the way to set up a business by considering different risks related to it such
as financial or managerial. The entrepreneurial ventures can have different ownership structures
and the entrepreneurs need to have certain skills and characteristic to development and
management of a business. The experience and personal background can have diverse effect on
the entrepreneurship that can foster or hinder a business. The study is going to focus on different
types of entrepreneurial ventures, their effect on the economy. Apart from this, the skills and
mindset needed to set up a business will be elaborated along with the ways experience and
personal background can affect a start-up business.
P1 Discussion of different types of entrepreneurial ventures and explanation
about the ways those relate to the typology of entrepreneurship
The entrepreneurial ventures are different in types as follows:
Small business entrepreneurship: These type of startup businesses can only be run by the
owners and the number of employees are very low. Along with this, the revenue generation are
not much and these organizations continuously focusing on getting more clients and
development of its products or services. This type of business can be run with family members
and with friends as partner. However, several small businesses are there that provides innovative
products or services and grow exponentially (Drucker, 2014).
Scalable startup entrepreneurship: These types of businesses start business with innovative
ideas and focus on providing innovative products or services from the starting. These types of
entrepreneurs believe that their ideas can change the world and they search for investment from
venture capitalists. These organizations look for brightest mind for the business and they tend to
set up a scalable business model.
Large company entrepreneurship: The large organisations have finite life cycle and they focus
on providing new products or services to the customers for sustainability and longevity of the
business. The demand of the customers and trends are changing eventually along with
competition, legislation that forced the large organization in disruptive innovation and create
new products for entirely new market. However, the large size of the organization makes the
disruptive innovation difficult.
Social entrepreneurship: This type of entrepreneurship focus on solving different social
problems by delivering their products or services. This organisations focus on creating a better
world for the people and can be for-profit, non-profit or hybrid (Scarborough, 2016).
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P2 Exploration of the similarities and differences between Entrepreneurial
ventures
Differences and similarities between different entrepreneurial ventures are following:
Factors Small business
entrepreneurshi
p
Scalable startup
entrepreneurship
Large company
entrepreneurship
Social
entrepreneurship
Goals
and
objective
s
These
organizations
might not have
structured goals
and objects and
works on
achieving lesser
profitability and
growth.
These business
aims to provide
innovative
products
constantly and
achieve high
profitability for
investors (Kirzner,
2015).
These
organizations aim
to sustain in the
market by
developing new
products or
services and
marketing
strategies.
These
organisations aim
to provide quality
products or
services to make
the world a better
place.
Risks The risks might
be lower but
competition is
high with same
sized
organisations.
The risks are high
due to high
amount of
financial
investment and
pressure to return
high amount to the
investors by
achieving high
sales volume.
The risks are
medium because
large businesses
often manage to
sell high volume
due to their brand
value.
The risks are not
much high
because, these
businesses often
get support from
government and
public due to their
vision.
Employe
e number
Employees are
not more than 50.
Depends on
structure and size.
Employees can be
more than 1000.
Depends on the
size of the
business.
Structure No proper
organisational
structure and
often run with
Mainly
corporations or
limited
partnerships.
The
organizational
structure is often
complex and can
Mainly trustee
based
organisations.
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