P1. Types of entrepreneurial venture and their typologies (Doc)
Added on 2021-01-02
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ENTREPRENEURSHIP
INTRODUCTIONEntrepreneurship is known as the process of setting up a new business and take financialrisk in hope of profit. Entrepreneur is known as the individual who develop a new idea orconcept to generate large number of revenues. Various type of featured products and services areoffered by entrepreneurs in order to attract more and more number of customers towards theirofferings. Small entrepreneurs play a big role in economic growth of a nation as these are the onethat provide employment opportunities to local people. Various factors are there which affect theperformance of small enterprise it is very essential for entrepreneurs to identify and examinethose factors in order to formulate an effective strategy related with execution of commercialoperations. The report covers detailed information about different types entrepreneurial venturesand their different typologies is all given in this project. Further, contribution of small businessesin economic growth of a nation and impact of micro business on economy is all included. Inaddition to these various factors that hinder or foster the process of entrepreneurship is alldetailed in this project (Aldrich, 2017). TASK 1P1. Types of entrepreneurial venture and their typologiesEntrepreneur refers to a person who come up with an innovative idea and take aninitiative to set up a new venture for availing the opportunities by bearing all the financial losses.An entrepreneur is generally known as an innovator or source of new idea, goods, services etc.who take up all the risk of starting up a business. Entrepreneurship refers to the process of designing, launching and running a smallbusiness venture in hope of making profit. It is a combination of land, labour, capital and naturalresources. Entrepreneurial ventures plays a major role in development of economy. Followingare the types of entrepreneurial venture:Small business entrepreneurship:- A small enterprise refers to any type of businessventure which is independently owned and operated by an individual who is not engaged in anypromotional activities. These enterprises are smaller in size and its owner generally hire localemployees or family member. Small businesses are grocery stores, consultants, travel agents etc.Main aim of these entrepreneurs is to earn their living as well as making profit and their mainsource of capital is family/friend or small business loans (Choi and Majumdar, 2014). 1
Scalable start-up entrepreneurship:-Unlike small business entrepreneurs, their mainaim is to start up their business by bringing innovative approach and they have the capability tochange the world. These entrepreneurs more believe on themselves and have the ability totransform their dream intro reality. They start their venture with some unique idea, set upbusiness and then sell it to another business person for executing their new plan. Large scale entrepreneurship:- These type of entrepreneurial venture are managed bylarge group of people. Main aim of these entrepreneur is to achieve higher market share as wellas to maximise profits through accepting market alterations. Large scale organisation havevarious sources to fund such as venture capital, investors, equity capital, bank loan etc. Theseorganisation has finite life cycle (Cooper and Folta, 2017). Social entrepreneurship:- Social entrepreneurial venture refers to a business that aregenerally established to serve society for their welfare. These entrepreneurs are the innovatorswhich brings product and services for solving the problems faced by society. Social enterprisesare operates as non-profit, for profit or hybrid. Main aim of these entrepreneurs are to identifythe need and want of the people. After determining their need, offering the product or services asa solution to their problem. Apart from these types of entrepreneurial venture there are various types of typologies towhich these entrepreneurs and their operations belongs. Typology of entrepreneur are as follows:Research entrepreneur:- These type of entrepreneur are more focused towardestablishing their business by properly evaluating the market. They research each and everyaspect of market such as prevailing demand, competition etc. in order to formulate strategies toachieve higher growth. Large scale entrepreneur invest large amount of fund over its researchand development practices for identifying the current market trend in order to satisfy customer'sdemand. These entrepreneurs are more focused toward bringing changes regularly to deal withdynamic environment (Cooper, 2017). This typology is related to scaleable entrepreneurshipbecause they are the individuals who research about scope of different methods and then takeactions to execute it. Copycat entrepreneur:- This type of entrepreneurs sees the success of others and tries tocopy their practices in their own businesses. Main reason behind copying their practices is toattract customers toward their offerings without putting much efforts. Small businessentrepreneurs are come under this category as their main aim is to earn their regular living. Small2
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