Analyzing Entrepreneurial Ventures: Types and Economic Effects

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurial ventures and their economic impact.

Entrepreneurship and Small Business Management
1 | P a g e

Contents
Introduction...................................................................................................................... 3
LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial.................................................................................................................4
P1: Examine different types of entrepreneurial ventures and explain how they relate
to the typology of entrepreneurship..............................................................................4
P2: Explore the similarities and differences between entrepreneurial ventures...........6
M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sectors...............8
D1: Critically examine the scope, development and growth of entrepreneurial
ventures........................................................................................................................9
LO2: Assess the impact of small businesses on the economy.......................................10
P3: Interpret and assess relevant data and statistics to illustrate how micro and small
businesses impact on the economy............................................................................10
P4: Explain the importance of small businesses and business start-ups to the growth
of the social economy.................................................................................................11
M2: Evaluate the differences small, medium and large businesses make to the
economy, applying relevant data and statistics..........................................................12
D2: Critically examine how small businesses have an impact on different levels of the
economy (local, regional, national) and in an international context............................13
Conclusion..................................................................................................................... 15
References.....................................................................................................................16
2 | P a g e

Introduction
This report enables to understand the meaning of entrepreneurship and the hurdles
faced in relation to the starting up of a new venture. It defines the types of ventures and
how can these ventures be related to the typology of entrepreneurship. The report also
consists of difference and similarities between various ventures of entrepreneurs. This
report helps in better understanding of how micro and small business affects the
economy of the country. This report explains the importance of small businesses and
describes the differences between the small, medium, and large businesses. This report
also provides the characteristics and skills of the entrepreneurs, and these traits can be
useful in motivating the entrepreneurs. It explains the arguments in relation to the
characteristics of the entrepreneurs. This report also considers how can the background
foster entrepreneurship and explains the link between personal background influence
and characteristics of entrepreneurs.
3 | P a g e

LO1 Explore and illustrate the range of venture types that might be considered
entrepreneurial.
P1: Examine different types of entrepreneurial ventures and explain how they
relate to the typology of entrepreneurship.
Entrepreneurship is a method of creating new business by taking risks in order to
generate profits. The aim of entrepreneurs is to solve the problems by transforming the
world by the way of innovating new products, initiating the level of change in society,
and providing a solution that helps in changing the life (Ferreira, 2018).
Entrepreneurial activity is the method of enterprising actions of the human in relation to
the value generation, by creating and expanding the activities of the economies, through
exploitation and identification of new products, markets, or processes.
An enterprise is considered as an entrepreneurial activity, which is used to manage the
startups and businesses.
Difference between entrepreneur and intrapreneur
An entrepreneur is a person who takes an initiative by forming a venture in order to
utilize the opportunity by taking the benefit, and he is the only decision maker of his
venture and decides as to how what, and how much products need to be produced.
The intrapreneur is an entrepreneur of a large business, or an insider entrepreneur, who
utilizes all the skills and knowledge of an entrepreneur without taking the risks
associated with the specified activities.
Basis of difference Entrepreneur Intrapreneur
Meaning He is a person who aims to
start up a new business when
he founds an opportunity with
an innovative idea.
He is an employee of a
company who undertakes the
skills of an entrepreneur
without taking any kind of
4 | P a g e

risks.
Resources It uses its own resources. He uses the resources which
are being provided by the
company in which he is
employed.
Risk The risk is involved as soon
as he decides to start up a
new venture.
The risk is not associated with
him and is of the company.
Approach Intuitive Restorative
Enterprise A new venture Already an established one.
Works for In order to create an image
and leading position to solve
the problems available in the
market
It works to change the existing
organizational culture and
system.
Capital Entrepreneur raises the
capital by himself.
The capital is provided by the
company.
Dependent An entrepreneur is
independent
An intrapreneur is dependent
on the company (Surbhi,
2016).
5 | P a g e

Typology of entrepreneurship:
According to Kuratko (2016), Kunkel(2001), and Morris, et. al. (2016), they have
proposed various models of typologies of the ventures of entrepreneurs. They have
provided four types of ventures in their models, such as:
1) Small/ Lifestyle/ Low Growth Potential Ventures: This model provides a
moderate income to the entrepreneur.
2) Survival/ Microenterprise Ventures: It provides a basic stand of living to the
entrepreneurs.
3) Managed Growth/ Medium-sized Ventures: This type of venture provides
progressive growth and demonstrates the introduction of new goods and
products, stable growth of places, and facilities, and entrance into the new
market.
4) Aggressive Growth/ Gazelle ventures: This type of venture is technology
based. These ventures aim to have exponential growth in the market (Kanu,
2018).
6 | P a g e

There are four types of entrepreneurial ventures. These are:
Image: Types of entrepreneurial ventures
Source: By Author, 2018
1) Small Business Entrepreneurship: Small businesses include consultants,
electricians, grocery stores, etc. Small businesses have less profit. These businesses
are of small scale and they get their business financed by their relatives or friends.
2) Scalable Startup Entrepreneurship: The aim of these ventures is to change the
world. These ventures get funds from financial investors- venture capitalists. They focus
is to have more venture capital in order to have a rapid growth.
3) Large Company Entrepreneurship: Large Companies growth depends on the
innovation, providing new products which are different from core product. Large
companies focus on changing according to the change in preference of the customers,
new competitors, new and updated technologies, etc.
4) Social Entrepreneurship: These ventures produce goods to satisfy the needs of the
society. These are non profitable type of ventures.
7 | P a g e
Small Business
Scalable Startup
Large Company
Social

8 | P a g e

P2: Explore the similarities and differences between entrepreneurial ventures.
According to Carland, et. al., (1984) defines entrepreneurial ventures as a firm which
employs minimum one of four classes of Schumpeter’s characteristics particularly the
main motive of the entrepreneurial venture, but it shall not limit itself to growth,
profitability, and innovation.
There are various types of Entrepreneurial ventures like:
Image: Types of entrepreneurial ventures
Source: By Author, 2018
Different types of ventures have different progress level, sizes, etc. The similarity
between medium-sized ventures and gazelle ventures is that they both contribute to the
tax base, both are opportunity-driven, both focus on the unmet requirements in the
market and introduces new products to meet the needs of the people. Both of the
ventures focus to enter into a niche market. These ventures focus to increase their
growth by working in the national and global market. Hence, both of the ventures
9 | P a g e
Micro
enterprise
ventures
Low
Growth
Potential
Ventures
Medium-
sized
ventures
Gazelle
ventures

provide various job opportunities to the unemployed people and those who aim to work
in an entrepreneurial venture and are prepared to take the risks. Both these ventures
are focused to generate enormous profits by utilizing the entrepreneurial knowledge to
form innovative products and provide the same in the market.
The difference between different types of entrepreneurial ventures include that micro
enterprise ventures provides a basic living standard to the entrepreneurs and does not
have an ability to reinvest, whereas low growth potential ventures provide entrepreneurs
a steady income and achievable model of the business with an ability of reinvestment.
The micro enterprise ventures are easy to set up and face issues relating to financial
matters, whereas low growth potential ventures face difficulty in setting up its business.
The micro enterprise ventures focus on maintaining the entrepreneur’s daily survival,
whereas LGPV earns an income with which they can have their survival. The LGPV’s
primary aim is not just to earn a profit as the growth potential of such ventures is small.
The micro enterprise ventures have limited resources and operate a business either by
utilizing cash or through a barter system. These ventures have no relation with the
banks.
Similarities between small business and scalable startups entrepreneurship:
1) Both the entrepreneurial ventures require funds from outside source.
2) Both are ready to take the risks involved for the particular venture with a motive to
earn a sufficient amount of profits.
Difference:
1) The growth of small business is limited, whereas scalable startups aim to have a
quicker and rapid growth.
2) Small business needs an advice on the appropriate structure of the business (like
partnership, entrepreneurship, company, or trust). Scalable startups require advices on
law such as copyright, Consumer Law, privacy, IPR, or any other niche market laws.
10 | P a g e

M1: Investigate a diverse range of entrepreneurial ventures to demonstrate an
understanding of entrepreneurship in both the public and corporate sectors.
The entrepreneurship can be either in the public sector or in corporate sectors.
Corporate sector entrepreneurship refers to the innovation of new ideas within the
existing large enterprises, which results in improving profitability and helps in enhancing
the competitive position. Public sector entrepreneurship is the firms which are owned,
governed, and financed by the government. According to public sector
entrepreneurship, it focuses on the development of existing and/ or new services,
administrative techniques, risk taking, technologies, productivity, and new improved
strategies.
The main objective of corporate sectors in to generate profits from their businesses. The
public sector allows entrepreneurs to help in providing goods, services, and products to
the public by the local government, and corporations. The social entrepreneurial
ventures aim to provide social service to the public without the intention of earning
profits.
A private entrepreneurial sector varies in terms of the size of trading. Private sector
entrepreneurship includes the innovation in those where public and private sector both
combines in order to achieve common social objectives and goals.
Corporate entrepreneurship is used in large organizations and is ready to take the risks
in order to develop new innovating ideas and products, drive the leaders, managers,
and teams to achieve an increased level of corporate enterprising (May, 2011).
11 | P a g e

D1: Critically examine the scope, development, and growth of entrepreneurial
ventures.
Entrepreneurship is a method used by an entrepreneur to gather the available
resources of the business in a manner that an entrepreneur can meet the needs of the
business, and achieve the targeted goals and objectives of the business and of his own.
The entrepreneurial venture has a wider scope as it focuses on building new and
innovative products to satisfy the needs of the public by taking risks. The growth and
development of entrepreneurial venture include investment in the goods and products
according to the needs of the public, provides employment opportunities, promotes the
use of technology, address environmental challenges, etc.
12 | P a g e