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Entrepreneurship and Venture Planning Assignments Solution
The venture can be defined as an undertaking involving both chance and risk e.g. a speculative business enterprise. It is developed with the aim of making a profit.
Entrepreneur- is a person who comes up with a business idea and ventures into it using his/her resources with the aim of making a profit. He is responsible for all the risks associated with the business.
The entrepreneurial venture is a business or an organizational behaviour that critically puts innovation and opportunities into consideration in order to enhance economic growth and social value. Its main focus is on coming up with a new product to satisfy a given market and not necessarily dealing with existing products (Allen, 2015).
Types of Entrepreneurial Ventures
There are several types of business ventures (Morris et al. 2018). Discussed below are some of the business ventures that can be considered entrepreneurial;
This is a situation where start-up companies and other entrepreneurs are used in the development, financing and putting solutions into practice for social, cultural and environmental issues. Social entrepreneurship can be categorized into two; social entrepreneurs who view performance in the form of improvement of the welfare of the involved community and for-profit entrepreneurs who view performance in terms of profits, revenues and increased stock prices.
Social entrepreneurship strives to achieve social, cultural and environmental goals in such areas as health care, alleviation of poverty and community development. It mainly depends on volunteers.
This is the process of coming up with new ideas and opportunities within established companies with an aim of improving profitability and the competitive position of an organization or renovation of strategies of an existing business. Innovation is a very important factor in corporate entrepreneurship since the two can really help in taking calculated and beneficial risks. Corporate entrepreneurship has a significant effect on competition and can also lead to the creation of new industries (Bouchard et al. 2018).
Corporate entrepreneurship makes risk-averse companies be risk-takers by making them more innovative. This helps in driving leaders and subordinates towards an increased level of corporate brilliance.
It also leads to organizational renewal since it drives the company to venture into new ideas. The company is able to improve technologically, administratively and also its products and processes are improved. This, in turn, makes the company be more competitive.
Scalable Startups Entrepreneurship
A scalable startup involves innovating an idea and looking for a scalable and repeatable business model that will turn it into a large profitable corporation. The corporation does that by entering into a large market and taking a share of it from the present players in the market or creates a new market and devices ways to make it grow rapidly (Holmen et al. 2015).
A startup requires external capital for it to create market demand and scale thus founders have to convince investors that the venture is viable. They also have to hire the services of skilled employees who help in winning early customers.
Small Business Entrepreneurship
Small businesses are privately owned businesses that generate low annual revenue and have fewer employees when compared to larger businesses or corporations. They take the form of sole proprietorships, partnerships, and corporations. The main point of measurement taken into consideration when classifying small businesses is the number of employees although there are a number of parameters that can also be considered including annual revenues, a number of shipments done, net profit, sales and assets owned by the business (Schaper et al. 2014).
Small businesses are started by entrepreneurs whose intentions are not to make the venture grow into a big business one day. They are content with the way things are so long as they can earn a living and serve their local community. The founders do not necessarily aim at doing things differently but are likely to do what others are already doing.
Impact of Small Businesses on the Economy
Small businesses are the engines of growth and they have a vital impact on the success of a given economy. For example, in UK small businesses and medium enterprises are the backbone of the economy, According to research method, it was discovered that they provided 50% of employment opportunities between 20002 and 2008.
Small businesses influence the economy in the following ways:
1. Innovation- small businesses are usually involved with coming up with new ideas of doing things or improving on existing ones. By so doing, better methods of carrying out specific activities may be invented.
2. Job opportunities- small businesses create employment opportunities which help in improving people’s living standards. The jobless individuals who could not afford anything can earn some income out of the venture making their lives much more comfortable since they can now afford whatever they want by making use of the earned income.
3. Independence- as a result of people being employed, they will earn income which will make them financially independent. The earned income puts people to afford most of the things they require which makes them less dependent on other employed individuals.
4. Development- small businesses have greatly lead to the development of rural areas where most of them are located. Consumers who buy from these small businesses pay lots of local taxes which in turn can be used in the building of new social amenities and improving existing ones. This is of great advantage to the economy at large.
5. Future growth- almost every large corporation started off as a small venture. They have since grown to become large corporations which lead to the growth of the economy on a larger extent
They help in the utilization of idle resources- small businesses often make use of locally available resources ranging from human to natural resources which have not been explored before. By putting these resources into practice, they lead to the total growth of the Gross Domestic Product.
Economic growth- by utilizing locally available resources, small businesses make available to the local and international markets which save the country revenue that would have been used in the importation of similar products and also generates revenue to the government in form of taxes on both exports and locally sold products.
1. Allen, K.R., 2015. Launching new ventures: An entrepreneurial approach. Nelson Education.
2. Bouchard, V., Fayolle, A., Bouchard, V., Fayolle, A., Adler, P.S., Kwon, D.W., Amabile, T.M., Whitney, D.,Amherdt, C.H., Dupuis-Rabasse, F. and Emery, Y., 2018. Corporate Entrepreneurship, Knowledge and Competence Development. In Corporate Entrepreneurship (Vol. 27, No. 1, pp. 1-4). Boston, MA: Chicago University Press.
3. Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
4. Holmén, M., Berglund, H., Björkdahl, J., Mansoori, Y. and Sjölander, S., 2015. Entrepreneurs Searching for Scalable Business Models: The Barriers of the Customer Development Process. In Australian Center for En
5. trepreneurship Exchange (ACERE) 2015, 3-6 February 2015, Adelaide Australia (pp. 396-411). Queensland University of Technology.Morris, M.H., Neumeyer, X., Jang, Y. and Kuratko, D.F., 2018. Distinguishing Types of Entrepreneurial Ventures: An Identity?Based Perspective. Journal of Small Business Management, 56(3), pp.453-474.
6. Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.