Entrepreneurial Ventures: Types, Similarities, and Differences

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ENTREPRENEURSHIP AND SMALL BUSINESS
MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
LO 1.................................................................................................................................................4
P1 Types of entrepreneurial ventures..........................................................................................4
P2 Similarities & differences between entrepreneurial ventures.................................................5
M1 Diverse range of entrepreneurial ventures............................................................................6
D1 Scope, development & growth of entrepreneurial ventures..................................................6
LO 2.................................................................................................................................................7
P3 Interpreting & assessing relevant data....................................................................................7
P4 Importance of small business startups to the economic growth.............................................9
M2 Evaluation of differences made by small, medium & large businesses to the economy......9
D2 Impact of small businesses at different levels.....................................................................10
LO 3...............................................................................................................................................11
P5 Characteristic traits & skills of successful entrepreneurs.....................................................11
P6 Aspects of entrepreneurial personality reflecting entrepreneurial motivation & mindset....12
M3 Different lines of argument relating to entrepreneurial characteristics...............................13
D3 Analysis of characteristic skills & traits of successful entrepreneurs with effective
examples....................................................................................................................................14
LO 4...............................................................................................................................................14
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P7 Demonstration of ways in which personal background can hinder or foster
entrepreneurship........................................................................................................................14
M4 Link between entrepreneurial characteristics & the influence of personal background.....15
D4 Comparison of personal background & experience in the positive & negative manner.....16
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
The deep study & effective understanding is required to be enhanced before establishing any
kind of small business or the entrepreneurial business. An entrepreneur is an owner or the
business manager of his respective organization who believes in earning a higher amount of
money by taking off both the short term as well as the long term risks. These kinds of
entrepreneurs are being included under the notable entrepreneurs. The complete report includes
the advice given to the client about whether his business organization at the smaller level should
be established or not.
The range of different types of entrepreneurial ventures is being illustrated in order to
demonstrate the deep understanding of the entrepreneurial concept in both the public as well as
the corporate sectors. The impact of the small business entrepreneurship is also being identified
on the whole economy. Different environmental factors are also been analyzed that can foster or
hider the concept of entrepreneurship.
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LO 1
P1 Types of entrepreneurial ventures
Both the concepts of “entrepreneurship & intrapreneurship” are different from each other.
Entrepreneurship includes the development of an innovative product for earning maximum
organizational profits. Intrapreneurship includes the different initiatives which are being taken &
enhanced by the employees within the business organization. It can be said that an intrapreneur
is an employee, on the other hand, the entrepreneur implements& execute his innovative ideas &
thoughts within the business organization. The entrepreneurs analyze the various factors of the
external environment that can affect their goals & organizational values in order to effectively
execute their innovative ideas. In order to know whether the small business entrepreneurship
should be established or not, it is very essential to know about the different types of
entrepreneurial ventures (Fayolle, et.al. 2014). Different ventures have different levels of values,
ethics, innovativeness & creativeness. Following are the different types of entrepreneurial
ventures:
Large business entrepreneurship: These business organizations’ main aim is to enhance the
higher level of sustainability in ensuring the sustainable products & services to all the customers
in order to retain the potential customers with the business organization for the longer period of
time. The changing demand of all the customers increases the level of competitiveness in the
business environment. The business managers of large business organizations can grab a
competitive advantage with the help of delivering innovative products & services to all its
customers. The “disruptive innovation” is difficult with these large sized business organizations.
Small business entrepreneurship: These organizations are run by the business owners which
also possess the minimum numbers of employees working within the business organization. The
amount of earning the revenue is not at the maximum level as the main aim of these business
organizations is to attract the large numbers of potential customers & also to develop its
innovative products & services. It is not necessary to consult & include the professional experts
for establishing & conducting the small businesses, the family members can also be included for
running these organizations.
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Social business entrepreneurship: The main aim of this business entrepreneurship is to solve
the different problems at the social level with the help of delivering innovative & sustainable
products & services in an effective manner. Under this, the world is to be created in a better
manner (Hagen, et.al. 2014).
Scalable business entrepreneurship: Only a high level of innovative products & services are
being delivered by these business organizations with the strong belief that their innovative ideas
can make the whole world much better. They look for the venture capitalists for investing the
standard amount of money.
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P2 Similarities & differences between entrepreneurial ventures
Following are certain similarities &differences between the identified entrepreneurial ventures:
Factors Small business
entrepreneurship
s
Scalable business
entrepreneurship
s
Large business
entrepreneurship
s
Social business
entrepreneurship
s
Level of
risk
High level of
competition is
being found along
with a lower level
of risks
Investment of
money is high
because of which
the higher level of
risk is found
The higher volume
of sales can be
managed by the
large business
managers with the
help of higher
brand value;
therefore, the level
of risk is medium.
Because of the full
support from the
government &
public, the level of
risk is low because
of their mission &
vision.
Structure This business can
be run either in the
form of a sole
proprietorship or in
partnership. The
formal structure is
not included under
it.
These are either
corporations or
limited
partnerships.
It can be both the
public as well as
the private limited
partnership & the
complex structure
is being found
(Tolentino, et.al.
2014).
These are
trustworthy
organizations.
Objective
s & goals
The particular
goals & objectives
are not being
The goal of these
organizations
includes the
The main aim is to
enhance
sustainable growth
The main goal is to
provide a higher
level of quality
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possessed by these
organizations.
Also, they earn a
lesser amount of
growth
&profitability.
providence of
innovative
products &
services.
for a longer period
of time with the
help of developing
innovative
products &services
along with the
effective
implementation of
business or
entrepreneurial
strategies.
products for
making the whole
world better.
Number
of
employee
s
The employees do
not exceed the
number of 50.
Depending upon
the size &
structure.
Employees can
exceed the number
of 1000.
Depending upon
the size of the
business
organization.
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M1 Diverse range of entrepreneurial ventures
Public sector: These business organizations are being controlled by the Government of the
country either directly or indirectly. These sectors are being provided with the full support in the
context of the higher amount of investment & the marketing strategies in order to accomplish
their respective goals for providing the higher quality products & services to all the potential
customers. The main focus of these sectors is on the enhancement of “social welfare &
development” rather than earning the maximum amount of profits.
Corporate sector: These can be run either privately by the individual business managers or by
the public. The marketing strategies are being developed & executed by their own without the
support from the government for not only providing the quality goods & services but also to
enhance the higher level of profitability & sustainability in the competitive business
environment (Fayolle and Liñán, 2014). The strategies are being developed & executed for
gaining a competitive advantage.
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D1 Scope, development & growth of entrepreneurial ventures
Different entrepreneurial ventures have different goals, objectives, vision & mission which
affect the overall scope of the business organization. When all the business entrepreneurship is
able to meet up the demands of all the customers, they can sustain in the competitive business
environment for a longer period of time. The main focus of all these organizations should be
upon the investment & the marketing strategies to be executed. The organizational structure can
also be enhanced with the help of effective communication within the different organizational
departments. The overall growth of all these organizations depended upon providing the quality
& innovative products or services along with meeting up the demands of different customers
with the help of effective organizational strategies.
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LO 2
P3Interpreting & assessing relevant data
Both the small as well as the large business organizations greatly affect the whole economy by
generating a higher amount of organizational revenue with the help of selling the innovative
products & services to all the potential customers.
Figure: Percentage of small business organizations
Source: By Ross Brown, 2018
The above diagram shows the graph of both the small &medium business entrepreneurship for
facing the different obstacles & impacting the whole economy. This small business
entrepreneurship enhances the high level of economic growth, creative innovation, increase in
job opportunities & effective social integration. The maximum numbers of employees are being
employed from all over the World (Kautonen, et.al. 2014). Different entrepreneurial ventures
have different structures of ownership depending upon the number of employee working within
the business organization.
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Figure: Annual revenue growth of small & medium entrepreneurship
Source: ABS, 2015
The small business entrepreneurship indirectly contributes to the whole economy. The help in
increasing & generating the maximum amount of revenue with the help of delivering innovative
& creative products to the people living in different countries from all over the World.These
increasedamounts of revenue contribute towards the high level of growth of the whole economy.
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