Analyzing Different Types of Joint Ventures and Their Economic Impact

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This essay delves into various types of business ventures, with a primary focus on joint ventures and their significant impact on the economy. It begins by outlining different business venture types, including local businesses, sole proprietorships, general and limited partnerships, corporations, non-profit organizations, and joint ventures, providing examples of each within their respective environments. The essay further explores how these ventures, particularly joint ventures, contribute to job creation, national income development, and overall economic growth. The second part of the essay examines the scope of entrepreneurship at local, global, and social levels, highlighting the traits and characteristics of entrepreneurs and analyzing how their backgrounds and experiences can either foster or hinder their entrepreneurial endeavors. The document concludes by emphasizing the crucial role of business ventures in shaping both national and global economies.

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DIFFERENT TYPES OF JOINT VENTURES AND ITS
IMPACT ON THE ECONOMY

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Table of Contents
Introduction................................................................................................................................ 3
Assignment 1..............................................................................................................................3
Types of Business Ventures................................................................................................... 3
Examples of Ventures with respect to their environments.....................................................5
Business Ventures and their Impact on the economy.............................................................6
Assignment 2..............................................................................................................................7
1. Scope of Entrepreneurship..................................................................................................7
2. Exploration of their situational factors, similarities and differences..................................9
3. Entrepreneurial traits and characteristics 9
4.Analysis of how background and experiences can either hinder or foster entrepreneurship
.............................................................................................................................................. 10
5. Conclusion........................................................................................................................ 11
References................................................................................................................................ 12

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Introduction
This assignment is discussing different types of business ventures and their impact on the
economy. However, the assignment is also provided with examples of different types of
business ventures and also explain the environment of these business ventures. However, it
helps to understand the features of different types of business ventures. The global economy
affected by the different features of these business ventures in a different manner and that put
a great effect on the global economy. In this assignment, the entire factors are discussing with
great efficiency that the readers can access a depth of knowledge that how different business
ventures is playing a significant role in the economy of world business.
Assignment 1
Types of Business Ventures
Local Business Venture
A local business venture can be termed as small business ventures. Typically, this type of
business ventures is private in terms. In this type of business, the employee number is smaller
than the other larger business. As the employee and business resources are small that is why
the yielding of this type of business form is smaller. This type of business is able to seek the
support of the government. Not only that the owners of the business are privileged in terms of
tax policies (Liu and Maula, 2016). Local business ventures are categorized for net profit,
sales, assets, shipments, revenues and so on.
Sole proprietorship
This kind of individual owner of a company is the only owner of their business. And they can
enjoy all the profits of the business alone. In this kind of business form, there is no
dissimilarity between the business entity and the sole owner. In this type of business form as
the owner can enjoy the whole profit alone, similarly, they are liable for all the debts
sustained by the business. This is known as the simplest form of a business venture. The sole
proprietorship is easier to set up and runs (Segal and Choi, 2016). Alongside this, the entity
of the business can be able to enjoy the flexibility of the management, lesser tax, maximum
profit and fewer legal issues.
General partnership

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General partnership organisation is a business form where the business venture has two or
more partners. In the general partnership, business partners are willing to share their interests,
labour, money and skill in order to improve their business and reach their goals. In this case,
unlike the sole proprietors, these partners share their profits, investments and debts together.
In the partnership business method, the partners are equally liable for all the profits and debts
of the company (Asghar, 2016). This is kind of an agreement between two or partners who
are willing to share the cooperative advantages including their correlative interests at the
same time. Usually, this type of partnership agreements is written in an agreement paper.
Limited partnership
Limited partnership business form is similar to the general partnership business form. Other
than the fact that in this business form two-partners do not share equal advantages. In one
hand the privileged partner enjoy Unlimited personal liability in terms of debts and
obligations.on the other hand the limited partner acquires limited liability moreover that these
limited partners cannot participate in the management and the decisions done by the
management. In this case, the losses of the partners are limited. This methodology is acquired
in order to decrease the amount of business (Holstenkamp and Kahla, 2016). The limited
partners do not get involved in the business operation on a regular basis.
Corporation
This is a complex business structure, other than those of sole proprietorship business, general
partnership or limited partnership. This is a non-profit business venture. In this kind of
business venture, the organisation has a particular amount of rights, liabilities and interests. In
this form of business, the upper hands include the lesser taxation police of the benefits in
finance (Means, 2017). But on the other hand, this business venture can be a cause of
increased license fees, and that is why discrimination in personal control is evident.
Nonprofit Corporation
As the name suggests, Non profit organisations are not created to enjoy the profits and
benefits like the other discussed business ventures. This type of organisations is created in
order to aid in the wellbeing of society (Mancuso, 2015). This type of organisations serves
kinds of stuff and resources for charitable trusts, religious works, education or other public
service reasons. This is a legal entity, that raises funds for the interests of the public and their

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betterment. This kind of noon profit organisations may require the registration from
government and other legal additional registration as proof.
Joint venture
This is a kind of business arrangement where two or more than two parties agree to uplift the
quality of their resources so that their organisation can achieve enhancement. Generally, this
kind of technique is obtained by the parties in order to arrange a new business activity or for
the purpose of a new project (Killing, 2017). These kinds of business forms last for a shorter
period of time, to pull off some new business operation.
Examples of Ventures with respect to their environments
Sole proprietorship
A grocery business or construction of IT business which is operated by a single proprietor is
regarded as the sole business venture or proprietorship. In this context, single authority can be
recognized and the responsibility of the business totally depends on the owner of the
business. The owner of the business manage the entire operational activities of the business
and the only person who can take a decision for his business.
General partnership
The business between Uber and Spotify, Apple and Master card is an example of a general
partnership. However, in this case, the losses and profits are shared with the business
partners. At the same time, in this context, the fundamental elements of the business such as
fund, labour, skills and many more things are contributed by partners. The decision if the
business is also taken by a collective way (Jin et al.2017).
Limited partnership
The example of Limited partnership is recognized when the business deal is happening with
accountants, physicians, financial advisers who are the license holder. However, the real
estate or film industry is included in this. In this type of business ventures the partnership is
limited and they also responsible to maintain the legal liabilities and also responsible for the
general debt.

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Corporation
Apple Inc, Microsoft, Amazon ltd and Walmart is regarded as the corporation business.
However, the environment of the corporation business is more complex than any other
business. Here the business has a huge responsibility to provide individual benefits to its
customers. The decision of the business is taken by the board of directors of the company and
take the entire responsibility of the business (Neumeyer and Santos, 2018).
Nonprofit Corporation
The business of the religious organization or a charitable organization is the best example of
the nonprofit corporation business. The prior goal of this business is to lead some ethical
entity and that is the reason the responsibility of profit or losses is nor accounted for. The
business focuses to provide public services and arrange some charitable program in order to
accomplish their objectives.
Joint venture
The business assignment between the Vodafone and Telefonica, BMW and Toyota is the
example of joint venture business. In this case, a business deal has been signed between two
business groups. Both the company can deal to approach their business transaction with a
limited period of time. The responsibility of the transaction of their business is sharing by
both organizations in this case (Yan and Luo, 2016).
Business Ventures and their Impact on the economy
The business ventures are playing a significant role in the economy. The business ventures
are regarded as the national assets as they create new jobs and also provides a huge revenue
to the national economy. However, the world economy is also influenced by different types
of business ventures. The entire positive and possible extents are accessed by the major role
of business ventures in the world.
Create a huge scope of employment
Different types of jobs can be accessed by different types of business ventures. To enhance
the goal of the business they required a huge amount of employees in their organization that
help the nation to drive out the issue of unemployment. However, the overall amount of
revenue is also affected by this employment in the nation. The standard of living is also

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synthesized by the action of business ventures. However, the different types of business
ventures have played differently to develop national and global assets. The local business,
however, provides jobs to local residents. At the same time, the joint venture business can
play a significant role in developing national growth (Rowley and Lewis, 2018).
National income is developed
Different business ventures create different types of scope to grow their businesses and that
also help to grow the income of the nation. The revenue of the nation is dependent on the
growth of the business ventures and thus the government of a nation focuses on the growth of
the business in their soil. The organization can add more revenue to the income of the nation
with the help of their new products and services. Different business ventures apply different
technologies in order to progress their business and enhances a new market for them (Roberts
et al. 2019). At the same time, the existing market also provides a certain amount of revenue
that affects the national income. The world is globalized new and thus the effect of business
ventures are also influenced the world businesses.
Assignment 2
1. Scope of Entrepreneurship
In the business platform, there are different forms of the business. There are startups and
some of them are huge partnerships or corporations as well. The entrepreneurship actually
gives away the idea about setting up a business on own. When a person establishes a business
on their own it is considered as a startup business. That is why in this scenario the whole
process is called as the entrepreneurship. The entrepreneurship can happen on a large scale or
in a local area as well. That is why entrepreneurship can be divided into three parts majorly
which are local, global and social respectively (Newey, 2018). There are different scopes for
the entrepreneurship that will be discussed in the course of this research.
Local Entrepreneurship
When the entrepreneurship is confined in one locality to be specific then it is called as the
local entrepreneurship. In this process, there are not enough chances for exploring the
business opportunities in the global platform. But there are different types of scopes
associated with this process as well. The people who are actually the owners of the local
companies then it can actually attract the attention of the local customers. Besides that, the

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organisation in this scenario can be very popular in the local market which can provide them
with a lot of benefits towards the organisation in surviving the different competitive problems
regarding the market (Hoogendoorn, 2016). The people come from different places or
belonging from the same place thinks about a new business and in this case, this is called the
local entrepreneurship. There are different scopes through which they can experience a lot of
growth and development in this scenario.
As an example, the case of Sravish Sridhar can be discussed. This person has come from
India to America in order to get a degree in computer science. After completing the study
Sravish has started a software firm and over the time he has employed over 120 people in the
organisation. Besides that, he has raised 30 million dollars as well. In this way, the person has
gained a lot of profit from the organisation. That is why this is a very major example of
entrepreneurship. After some years Sravish has sold the whole business and opted for another
business. He has gained a lot of dollars from the selling scenario as well. Thus the person has
actually got a lot of money to invest in another business that he is willing to start up.
Global Entrepreneurship
This is the age of globalisation and that is why there are different organisations who are
trying to explore the different global platform of the business in order to expand their
business. The global business entrepreneurship is actually those organisations who are not
confined in just one place and that is why this kind of entrepreneurship is called as the global
business entrepreneurship. In this scenario, the different parts or things needed for the
organisations are provided by the other companies scattered globally. So in this scenario,
different people from different parts of the world are helping in the rise and growth of the
newly established organisation (Yunus, 2017). Thus the organisations can explore the
different provisions of the world and there can be a beautiful blend of the different
personalities and the different opinions from all over the globe. That is why global
entrepreneurship is actually very beneficial and advantageous for an organisation.
As an example of global entrepreneurship, there are many companies. The different technical
organisations are all a part of the global entrepreneurship. There is a need for different parts
from throughout the globe because they are helpful for the organisation. The huge
organisations like Microsoft, Apple, Google all started with small startups. But with time it
has expanded globally and in the present scenario, they are recognised by everyone.

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Social Entrepreneurship
Social Entrepreneurship is the form of business venture that is operated by the novel
assessments of business approach. The example of this Entrepreneurship is educational
programs, services of a bank that is provided for the unreserved area and the Institute of
microfinance. The prior objectives of this entrepreneurship are to solve out the problems that
are associated with the wider community. In this type of business ventures, the business
owners are responsible and willing to resolve the entire risk factors associated with the social
issues and bound to enhance some positive changes in the society by their business activities
(Dees, 2017).
2. Exploration of their situational factors, similarities and differences
From the above discussion, it can be said that there are high scopes of the different
entrepreneurship in the business platform. The most major benefits of entrepreneurship are
that the owners do not have to depend upon the other entities or other sources of power
because of it. They have their own control over the full scenario. That is why
entrepreneurship is a very beneficial activity in the business platform. In a local
entrepreneurship everything related to the business is restricted or confined in a local place.
The interactions with the other parties and achieving the raw materials from the sources are
confined in one place. That is why in this case the businesses got recognition from the local
area only. There is no involvement of the other people or companies from the global or other
huge entities as well. That is why the situation within this local entrepreneurship van every
hard sometimes and in order to cope up with the different hurdles the company needs to
undergo several changes as well. The scenario of global entrepreneurship is very different
from this scenario. There is a lot of advantages regarding global entrepreneurship (Ayob,
2018). This company can get help from the different global enterprises in the time of need.
Besides, that can use several other enterprises as well for the different activities like supply,
raw materials and manufacturing as well. The social entrepreneurship can create engagement
for the different social entities swell and by keeping them engaged in the activities the
companies can actually provide a lot of betterment to the society.
3. Entrepreneurial traits and characteristics
There are several traits that are associated with entrepreneurship. The entrepreneurs need to
develop some characters which are very important for the companies that they are wishing to

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establish. Initially, entrepreneurs need to have a proper vision and passion for the company
which can drive the person to set up the different attributes to the organisation. Thus the
organisation can have a proper path in order to accelerate the growth. Besides that, the person
also needs to have an innovative thought so that the customers can not get similarities with
the other organisations already in the market (Berns et al. 2018). That way the entrepreneur
will give them the chance to compare. He has to make his mind up for taking the risks that
will be there in the initial period of the establishment. These are the few traits that are eligible
for every kind of entrepreneurship scenario like the local, global and social. This can actually
help in the betterment of all those organisations.
4.Analysis of how background and experiences can either hinder or foster
entrepreneurship
Entrepreneurship has been a high encouragement in today's world. And is getting popular
worldwide. There are some distinct factors that can aid in enhancing entrepreneurship in a
higher extent. In this scenario, the experience and the background of a business can conduct a
huge effect in expanding the business. The background and experience can either hinder the
business or can be proved as the foster for the same. Parental business is considered as the
main influential driver of entrepreneurship that can conduct good and bad effects on the
business undertaking. There are some traits in this scenario that might hamper the whole
business venture. These hinders involve the lack of skills and experience, as the acquired
business is hereditary (Lipset, 2018). So, the owner of the business might not be skilled or
trained. Family conflicts can also be considered as one of the bars in this business
undertaking. In this scenario, favouritism in the matter of promoting employees can also be
included. If any family member is involved in the business then this type of problem can
occur. In this context, the family members of the business owners can countenance difficulty
in making the decision over the fact that who will be the next owner of the business. This is
why the improved succession plan is very important in this ground. The foster includes some
other factors, such as the strong commitment, being an old organisation the trust of the
customers is higher in this case. That is why these organisations offer strong loyalty. The
stability in the business idea from the experienced business tycoon that is involved with the
business gene can be considered as the other foster in this case. The encouragement and the
building of a strong business notion and value can aid in the growth and success of the
entrepreneurs and their business.

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5. Conclusion
It is concluded that the world economy is greatly influenced by the different types of business
ventures. There are several business ventures are existing in the market and they have
different features also. The environment also differs from each other according to the purpose
of their business goals. At the same time, different types of business ventures are providing
different types of financial scopes to the society that people can develop their living stander.
However, it has been also noticed that there are some business ventures are also existing who
are working for the public interest and not bother for the profit of the business.

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