Developing Entrepreneurial Ventures Assignment Help
The purpose of this report is to investigate the different types of entrepreneurial ventures and their impact on the national economy.
These ventures include the sole trader, partnership, company, charitable businesses and the serial entrepreneur.
An entrepreneur is one who start or create something new, take charge and show leadership over the project, take responsibility for the project and shows direction for the success of the project(Jose de la Torre, 2015). He is an opportunist, who identifies a problem within the community or nation, finds solution through creative and innovative means with open mindedness and take the risk of finding a solution to the problem(Nwokike, 2019). Entrepreneurs are risk takers whose motivation is to create something to make a change in society. They are visionaries with creative minds like Steve Jobs, the co-founder of Apple Computers, strategist like Elon Musk, who knows about their business and understand how it operates, adventurist like Richard Branson of Virgin Group.
Serial entrepreneurs, these are those who continuously come up with new ideas, start the business and sell them or give up the responsibility of overseeing the growth of the business to others and lifestyle entrepreneurs refers to those who creates their business out of their personal passion(Nwokike, 2019).
The activities of entrepreneurs are important in every economy, they create, lead, direct, identify problems and find solutions to them and help in their own the socio-economic development of others through their social activities.
Similarities and Differences between Entrepreneurial Ventures
Small Business Entrepreneur: These are usually sole traders, they run their own businesses and includes the hairdressers, plumbers, electricians and travel agencies. They are most often the owner with a few employees.
Partnerships:This is when two or more people come together to form a business. It can a varied kind as to carry out a service or invent a product. Such partnerships exist so as to pull resources and talents together and it help in limiting the risk one person being responsible for any debt.
Limited Companies: These are companies that have been registered as legal entities and separated from its owners. These company’s act in their own name and responsible for themselves. They have maintained continuous growth and innovation, offering new products, technology and competition.
Social Entrepreneur: These are innovators whose aim is to create something to help solve social needs or problems, their main goal is to help make the world a better place and not to make profit on investment.They are focused on giving back to society what society has given to them by investing socially in environmental change, education andagriculture.. The social entrepreneur reinvests its profit into the community to create a change in the society.
Their motive is not to create wealth from that investment but to give back to society what benefit he has made from them and to leave legacy in the community. An example of such an entrepreneur is Bill and Melinda Gates, who are focused on improving people’s health and wellbeing, helping people lift themselves out of hunger and extreme poverty. Entrepreneurs like Elon Musk (TESLA), invest to create wealth and occupy a niche in the market with their products.
The importance of small and start-up business to the economy
Small businesses and start-up businesses are important in every economy. These businesses most often need little capital to start but they contribute a lot to the economic growth of their local community.
Public and Corporate Sector Entrepreneurs
Corporate entrepreneurs can be referred to intrapreneurs, developing new ideas and opportunities within an established organisation leading to the growth, development and profitability of the business and enhancing its competitive advantage over its rivals with a renewed strategy(May, 2019).Intrapreneurs are employees of the organisation involved in the research and development of new products.
Public entrepreneurs are government employees acting as entrepreneurs, being innovative, working closely with the public to build good relations and improving resources for public good(CPI, 2016).
Social entrepreneurs do recognise societal problems and employ entrepreneurial skills and principles of creativity, organisation and management to cause a social change by improving the existing situation, example is the women’s empowerment program, which creates awareness among women by providing them with education, vocational training and business development (Juneja, 2019).
Differences that Small, Medium and Large Sized Businesses make to the Economy
Small and medium sized businesses account for about 99% of UK businesses and have over 12million employees. Businesses are important to the economy as they provide goods and services, create jobs, increase tax revenue for development, invest in research and development which causes improvement to quality of life and improved product quality. Large businesses do invest in corporate social responsibilities in the communities or countries they operate which could be environmental or social.
Advantages of SME’s
These businesses contribute a large number of employment and new jobs in the economy.
They are more responsive to the market, innovative and ability to adapt in a growing economy.
Management is visible and close to customers, the business and employees creating an environment for quick decision-making.
They struggle to retain high quality staff, making room for low quality skill labour.
Job security is often not guaranteed.
Large businesses offer better jobs with security with good wages and allowances.
Large businesses have various ways to raise finance, such sale of shares at the stock exchange.
Increase in staff turnover as large companies employs huge amount of staff.
Large capital requirements, large workforce, facilities and equipments creating cash shortage.
Large businesses may need to delegate responsibilities to other staff members bringing about loss of control and bureaucracy.
Scope, Development and Growth of Entrepreneurial Ventures
Entrepreneurs are individuals who takes initiative by organising business ventures to take opportunities and decides on the outcome of the project. It can be in the form of a sole trader, partners or the owner of a limited liability company and a social enterprise.
Small businesses like the grocery store, do start up by raising capital from savings, family and friends.
Entrepreneurs have developed over the years from small scale retailers to international entrepreneurs. The global economy has helped the growth and development of entrepreneurs with improvements in technology, communication and infrastructure for research.Entrepreneurs do continue to develop various approaches in society and such innovation is the product of the social entrepreneur.
Impact of small businesses on the economy
The importance of small businesses or firms in the local town is the benefit of shopping locally and providing local employment, redistribution of wealth and contributing in the payment of local taxes. In the US small businesses represent about 99.9% of all US businesses and employing about 58.9 million workers(Brown, 2018). These businesses employ local workers and help in the growth of the local economy. Large businesses do benefit from small businesses within the same locality as they sometimes depend on them for the supply of certain products and provision of certain services.
Small businesses do make big impact on national economies through granting people the opportunity to achieve financial independence, encouraging innovation and creating employment opportunities(Kirby, 2017). Small businesses are by their contribution vital to the UK economy as they open up new markets and create jobs, encourage competition with innovation and creativity.
They have raised standard of living with different products at lower cost which have collapse local produce and create poverty and unemployment in such economies. Unemployment can have anti-social effect on the population as it will give rise to criminal activities, low morale among the populace, poor health and education having a negative effect on the very things that international businesses hope to improve.
PROJECT WORK FOR ENTER PRENEURSHIP (QUESTIONNAIRE)
1 How did you choose the company name?
A: To reflect the type service I am offering. (BRIDAL BEAUTY)
2 What is the idea behind the business?
A: To offer beauty and make-up services, dress up brides and bride’s maids for weddings and the decorations.
3 Do you offer any other products or services apart from the main business?
These are our main services, dressing up of brides and the bride’s maids and decorations.
4 Why this location?
It is good as it’s by a busy road, and my house accommodation is not far from here. There is free parking area which is good for me and my clients.
5 Which of the seasons benefit you most?
6 What are the main difficulties in this business?
Some clients are specific as to what they want and that makes it more difficult.
8 Was it difficult raising finance for the business?
Yes, with the banks, we have to start with our savings. Family was quite helpful.
9 Who are your main competitors in this business?
Every bridal service provider and hair dresser is a potential competitor
10 How will you advice someone planning to set-up his/her own business?
Be sure if what you are going to do, have an idea of what you are going to do and make sure you know the amount of capital you need to start
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