Assessment 1: Entrepreneurial Ventures (LO1 & LO2) - University Name

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Assessment 1: Entrepreneurial Ventures (LO1 & LO2)
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Table of Contents
Introduction......................................................................................................................................3
P1: Range of ventures considered as entrepreneurial, and way they relate to the typology of
entrepreneurship..............................................................................................................................3
P2: Similarities and differences between entrepreneurial ventures.................................................6
P3: Assess relative data and Statistics for illustrating how small and micro business impact on
economy...........................................................................................................................................7
P4: Importance of Small businesses and the business start-ups towards growth of social economy
.......................................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
This report provides an understanding of the different entrepreneurial ventures. The definition of
entrepreneurship and scope involved in it is discussed further. This report sheds light on the
factors that acts obstacles and motivates business start-ups. The impact of situational factors,
which includes background and education of an entrepreneur, will also be discussed. The role
played by small business to contribute towards the economy of a nation is discussed along with
the relative data to assess their impact on economy is addressed.
P1: Range of ventures considered as entrepreneurial, and way they relate to the typology of
entrepreneurship
Different types of entrepreneurial ventures
According to Austin et al. (2012), an entrepreneur is a person who chooses a different path than
the routine path and delivers an impact on the society. An entrepreneur, in the society is seen as
an innovator, source of variety of ideas and an extraordinary human being. Entrepreneurship
includes the capacity and alacrity of a human to develop, manage and run a business along with
any number of risks required to earn profit. As opined by Breugst et al. (2012), an entrepreneur
has to take multiple risks at the same time to be efficient. Majorly, there are two types of
entrepreneurial ventures, private and public. Public entrepreneurial ventures are often managed
by the government. This includes non-profitable organisation, established for the welfare of the
citizens. According to Fitzsimmons and Douglas (2011), municipal companies are considered as
public enterprises, as no profit is earned or if earned it is invested back towards the welfare of the
society. Private entrepreneurial ventures are controlled by private citizens or a group of
individuals, whose ultimate aim is to earn high profit. Joint venture is a venture, which includes a
combination of public and private venture, such as the cooperative stores, which are operated by
private companies but act as public ventures.
How they relate to the typology of entrepreneurship
The typologies of entrepreneurship as mentioned by DeTienne et al. (2015), survival, lifestyle,
managed growth and aggressive growth ventures.

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Options Survival Lifestyle Managed
growth
Aggressive
growth
Managerial focus The focus in on
selling what they
have.
The focus is on
the maintenance
of work.
As reflected by
Zenovia (2011),
in managed
growth typology,
priority is given
to the
incremental
growth.
This includes
scalability.
Orientation of
entrepreneurship
It is quite low in
survival
typology.
In this also, the
orientation is
low.
The orientation is
moderate.
Orientation of
entrepreneurship
in aggressive
growth is high
(Parker, 2011).
Skills of
management
They prefer to
sell the goods.
Management
skills include
operational
skills.
Skills of
management in
managed growth
include planning
and delegating.
This includes
planning,
innovation and
negotiation.
Structure A very little
structure is
followed in this
typology.
Simple structure
of organisation is
set up (Fisher,
2012).
The structure of
the organisation
is centralised.
A functional
structure is
followed in the
organisation.

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Style of
management
A reactive
management
style is followed
in the
organisation.
Tactical
management
style is used in
lifestyle venture.
Strategic
management
style is followed.
Proactive style of
management is
established.
Investment in
technology
There is no
investment in
technology.
Limited or very
low investment is
made in this
sector.
A moderate
investment is
being made to
the technological
sector.
High investment
is made in
technology.
Table 1: Typology of entrepreneurship
(Source: Learner)
Entrepreneurial ventures in public and corporate sector
Different types of Entrepreneurial ventures in public and private sectors
Microenterprise
ventures
Small/Lifestyle
ventures
Medium-sized ventures Gazelle ventures.
These ventures are
easy to start as they
are completely based
on the talent and skill
of an individual. It is
the most basic venture
and has no capacity to
reinvest.
The income for such
small ventures is
stable and is mainly
established to run the
lifestyle of an
individual or group.
The path of growth of
such ventures is small
(Chand and Ghorbani,
2011).
These ventures sometimes
emanate from smaller
venture and are conducted
in workable business model,
and the path of growth is
moderate in such ventures
These ventures provide
fastest growth and an
exponential path to
grow. The focus of
these ventures is to
grow immediately and
enhance their
investment.

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Table 2: Entrepreneurial ventures in public and corporate sectors
(Source: Learner)
P2: Similarities and differences between entrepreneurial ventures
Similarities and differences between entrepreneurial ventures
Differences between entrepreneurial ventures
Public sector Private sector
Objective The objective of the public sector is
to serve the citizens of a country.
The main aim of private sector is to earn
huge profit.
Raise money These ventures raise money from
collecting tax, imposing penalties
and other duties (Fisher, 2012).
Private sector raises money from the
shareholders by issuing or selling the
shares.
Working benefits Proper allowances are provided to
the employees along with security of
job.
A high salary package is given to the
employees, competitive environment is
provided.
Promotion basis Promotion is given to the employees
based on seniority.
Promotion is given to the employees in
terms of their grades or merit criteria.
Stability of job Public sector jobs are stable. These jobs are not stable.
Areas which need
to be served
Major areas served by public sector
include army, police, electricity,
administrative, etc (Parker, 2011).
The major areas served by private sector
includes, financial, construction,
pharmaceuticals, and education.
Similarities
Customer-service
oriented
Both these ventures, public and private, are customer oriented. They tend to
provide services to the customer, which helps them. However, the operational
management of both these ventures is different but they ensure high level of

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customer service.
Mentoring As per the opinion of DeTienne et al. (2015), a willingness to spend extra time
mentoring the juniors and sharing experiences can be seen in both these ventures.
Open to change Bot these ventures are open to change. They implement the latest technology in
their organisation to explore new opportunities of business (Fitzsimmons and
Douglas, 2011).
Opportunities for
growth
There are vast growth opportunities for both these ventures. Each sector, if works
efficiently in their respected areas can gain high competition and market value.
Table 3: Differences and similarities of entrepreneurial ventures
(Source: Learner)
Scope, development and growth of entrepreneurial ventures
Chand and Ghorbani (2011) have stated that, the entrepreneurial ventures are as important as
other businesses and provide the customers with high possibilities. The scope of entrepreneurial
venture is increasing as more people are focusing towards the entrepreneurial venture and prefer
more than their usual 9-5 job. The growth of these ventures can be monitored by investing as per
the need of customers. As described by Breugst et al. (2012), these businesses create new
opportunities, increase productivity and strengthen the competition. The development of
entrepreneurial venture is associated with the development of entrepreneur, intrapreneur and
managerial ventures. The scope and the growth of entrepreneurial venture are rising along with
the rise in development. The advanced technologies promote the growth of these ventures and
increase their areas of development.
P3: Assess relative data and Statistics for illustrating how small and micro business impact
on economy
Relevant data and statistics

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Small and medium sized enterprises (SMEs) are managing their business with the personnel
numbers below a certain level. However, it plays a major part in the economy. It has been found
that it includes a large number of companies and employs many people. Moreover, it contributes
a great part of the GDP of a country and contributes for economic welfare. According to
Chittithaworn et al. (2011), the contribution of SMEs varies in different countries and it shows a
wide margin in the business activity. In case of Australia, it has been found that about 97% of the
businesses of that country are performed by the engagement of SMEs, which contributes as
much as one third of their GDP in an economic year. In addition, it is also observed in the
economic survey that over 4.2 million people are employed by different small and medium sized
enterprises of that country, which is elected in their present economy. Similarly, it has been also
found that in Chile, more than 98% firms are marked as SMEs, which are employing a large
group of people and makes a great part in their economy. According to Aremu et al. (2011), the
working sectors, where the self- employed workers are engaged are also classified under SME,
as well the organizations, which is running by less than 100 employees. On the other hand,
Taiwo et al. (2012) also commented that the micro and informal sectors in a developing
community could also be considered as the SMEs, which are responsible enough to sustain the
economic condition of that country. These sectors are potential enough to develop innovative
forces and competition in several economic sectors.
As opined by Lucky et al. (2012), these SMEs are responsible to generate a large scope for new
jobs, and contributes a great part in the economy. It has been found that in the global economy,
over 95% firms are under the group of SMEs, which is encompassing about 60-70% of the
employees. However, the mode of performances and the activities may sometimes vary, which is
mostly depends upon the policies of that country. According to Cagno et al. (2013), the SMEs
are greatly dependent on the regulating policies of a country, which governs the working manner
of that country. On the other hand, there is a large share of the SME in the developed countries
too, where it is responsible for the generation of opportunities of different jobs. However, Meske
et al. (2013) argued on the effectiveness of the SMEs, as the SMEs are responsible for both
developing and destructing of the jobs. In addition, it plays a major role in the Organization for
Economic Co-operation and Development (OECD). The economic growth in the OCED sectors
is largely contributed by the SEs, by which a large number of job opportunities are originated.

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Besides, it has been found that the importance of the SMEs in the economy is increasing in the
recent years.
As opined by Gbandi et al. (2014), the major role played by the SMEs in creating the job
openings for a large group of employees is mainly because of that the large firms are continues
to scale back, which is accompanied by outsourcing different functions. All of this are directing
towards the improvement or increase of the weight of SMEs in the economy. In addition, the
SMEs are also enhancing the productivity of the society, which is reflecting on the growth of the
economy. According to Khan et al. (2014), the entry or merging of small firms with the large one
or the exit of small firms from the larger one is giving the rise of various small and medium
enterprises, which are developing the backbone off the economy of a country. The competitive
progress of the economy is also accompanied by the SMEs is often reflected by the high job
turnover and improved labour markets. It has been found that the expansions of the GDP by the
performance of the SMEs in different countries are increased over 0.20 on an average within 5
years after it is introduced in the market.
Figure 1: Share of SMEs in Business firms
(Source: DeTienne et al. 2015)
According to Khalique et al. (2015), in the recent years, the share of the economy in every nation
is largely occupied by different small and medium sized firms, which are continuously growing

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in the market. However, the major share has been shown in the European Union, where more
than 249 firms are included under the category of SMEs, which comprises about 93% of the total
economy. However, the next comes the United States, where about 38% of the total economy are
lead by the SMEs, are contributes a large share in the economy. In addition, there is a clear
evidence of increasing the number of engaged and full- timer employees in the different sectors
of small and medium sized enterprises over 38%.
Figure 2: Numbers of employees in different SMEs
(Source: Lucky and Olusegun, 2012)
P4: Importance of Small businesses and the business start-ups towards growth of social
economy
Importance of small businesses and business starts-ups to the growth of social economy
According to Ahmedova et al. (2015), the small businesses are very much important for the
growth of the social economy, as it contributes at the base level in a society. In addition, the
small business and the start- ups are providing different job opportunities for the society. Often,
it is observed that the start- up business remain successful over others as it is dealing with small
commerce, but often results in a large prospect. It encompasses large number of employees as it

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provides an easy mode of job to the employees, and this small contribute in the society makes a
large part of economy of a society. As all of the small firms and start- ups are a group of small
sectors, it deals with few number of employees and the overall activity of these sectors are easier
than any other enterprises. However, these small sectors can merge themselves and these small
sectors often comprise a great part of the society. In addition, Muda et al. (2016) commented that
these all are providing an additional support to the social economy, which is reflected on the
overall growth of the society.
As opined by Wynarczyk et al. (2016), the small and start-ups are playing the most important
role in the developing country, where the large businesses are not properly incorporated in the
society. All of these comprise a large part of the local economy, which is controlled by the local
people. As the start-ups involves the local workers to ensure the overall economic growth of the
society.
Small businesses affect local, regional, national and international economy
As opined by Ahmedova et al. (2015), the small business are offering a great benefits to the local
communities, which is reflected in the overall growth of the national economy. The small firms
and the start- ups are mostly active in the rural areas, and the big metropolitan communities,
which are ultimately offering the economic benefits. However, all of these are influencing the
local and the regional economy, by employing a large group of local people in their activity. In
addition, these kinds of businesses are the only one, which can survive, even in the reduced
population of a place. However, the diversity of different tasks is varying or the opportunities of
specializations are also influenced by the local or regional population. On the other hand, there is
another opportunity for these businesses, as it can provide different innovative and unique
features in their services to the customers and these can be personalized as per the customer
experiences. As mentioned by Chittithaworn et al. (2011), these can be the building block of a
country making its largest part of the business corporations.
According to Gbandi et al. (2014), the local businesses are making a great benefit to the local
government, as all of these are contributing the local government with taxes, which ultimately
contributes for the wellbeing of the national economy. Thus, prioritizing the small businesses
thrive high level of revenue to the economy, which help the nation to stand up in the

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international market, which ultimately offers the growth of the local economy along with
improving the national and international commerce.
Conclusion
It can be concluded from the report that entrepreneurial ventures play an important role to
produce effective business strategies and the appropriate market. The report analyses several
entrepreneurial ventures and the roles played by entrepreneurs in them. The small business start-
ups constitute majority of national economy. The affect of small businesses in local, national and
international economy is also discussed in the report.