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‘Entrepreneurship’ is a effective procedure that used to designing, processing and launching a new venture in an economy. People who used to implement these techniques in their strategic management process are known as entrepreneurs. This process describe as willingness and desired of individual person to introduce a new venture along with any risk in order to make money and profit. This is a large process that include business start up techniques, management strategies, fund management and economic as well as market analysis to getting desired growth and income. This process helps to identify business opportunities from target market to develop necessary resources and funds as well (Ackermann, 2012). This report includes different type of entrepreneurial venture, similarities and differences between entrepreneurial ventures as well as Micro and small business impact on the economy. It also represent Importance of small businesses and business starts-ups to the growth of social economy, Characteristic traits and skills of successful entrepreneurs, Personality of entrepreneur act as a motivational tool and Background and experiences which can hinder or foster entrepreneurship.
P1 Different types of entrepreneurial ventures
Introduction – This present task explain about different types of entrepreneur ventures, Typology of Entrepreneurship, Relationship between ‘types of entrepreneurial ventures’ and the ‘typology of entrepreneurship’ and Life Cycle of Entrepreneurial Firms.
In a economy different type of enterprises are establish for making money and getting appropriate growth as well. Main objective of these organisation is to create their appropriate image and goodwill in target market (Blackburn, Hart and Wainwright, 2013). Through these activities, they can easily create strong relation with target customers to maximise organisation's sales and revenue at a time. For this individual require to create impactful strategy to implement effectiveness in their firm. In target market these enterprises faces strong competition through existing ventures. So for this owner of these firms requires to make strong plans to face those challenges easily. Entrepreneurship and entrepreneur are two different terms as -
Entrepreneurship – This is a procedure that used to design, create and introduce a new business in targeted economy. It is describe capacity and willingness of individual to develop a venture along with any kind of risk in order to getting desired growth and income as well. In simple words, this term is used to starting a new business in effective manner.
Entrepreneur – These are the individuals who create impactful strategy to establish a new venture in target economy. They take risk in order to getting desired competitive advantages as well as make a profit. In this procedure they implement innovative ideas and advance technology to maximise their organisation and its service values.
Typology of Entrepreneurship -
- Individual Entrepreneurship – These type of Entrepreneurship are carried out by a individual person who have specific right to make any changes in them. They has authority of ownership and also a right or license to use it and disposal of property. For them it is requires to use all resources properly and allocate appropriate funds for firm. Moreover to mange resources it is required to utilize them effectively and properly.
- Corporate Entrepreneurship – This is a traditional form of entrepreneurship in which all the organisation wants to get effective growth and success in target market to achieve higher competitive advantages easily. For this firm requires to create appropriate framework that used to support innovation and creative ideas. This process basically used to develop new venture, process and strategies inside of an existing organisation to maximise its values, growth and revenues as well (Bridge and O'Neill, 2012).
- Public Sector Entrepreneurship – These type of entrepreneurship are basically used to make effective modification in public initiatives and policy which is carried out by different groups or individual. For this entrepreneur requires to use conductive and strategic process to engaging in such activities to face uncertainty. In these initiatives, public sector Entrepreneurship requires to use advance technology and innovative ideas to make impactful modifications.
Types of Entrepreneurial Ventures
- Start-up – This term is basically uses for a new development in economy that can be a beginning of company. These are the new ventures and companies that implement new and innovative ideas to enter into the market. High risk are associated with their activities but large number of opportunities are available for capturing target market (Bruton, Ahlstrom and Li, 2010).
- New Development – This is a appropriate process in which individual develop new ideas and thoughts to implement effectiveness in their business. These can be product, strategy and business development in target market. Through this they can easily get higher competitive advantages.
- Joint Venture – This process basically used to be with another company to accomplish a specific target, goal or objective. In it two or more business entities are shared ownership, risk and returns as well. Main objective of this process is to access a new market, maximise efficiency and share risk for higher investments (Burns, 2010).
- Partnership – This is a business process which is established by two or more people to achieve their target objective and goals as well. Partnership is a formal agreement in which all parties might share profit and liabilities with a mutual understanding or the bases of their contribution in firm.
Relationship between ‘types of entrepreneurial ventures’ and the ‘typology of entrepreneurship’ -
- Individual Entrepreneurship and Start-up – This typology of entrepreneurship is interrelated with the type of Entrepreneurial Ventures because in this individual uses new development to establish a new venture.
- Corporate Entrepreneurship and Joint Venture – In this process two or more business entities share ownership to achieve higher competitive advantages and desired growth easily. This type of entrepreneurial ventures is starts with a effective framework to implement strategic procedure properly (Chittithaworn and et. al., 2011).
Life Cycle of Entrepreneurial Firm