Entrepreneurship And Small Business Management
Entrepreneur is the person who is the soul source of the new innovative concept as he always tries introducing something creative and better. For this process he sets up entrepreneurial ventures which have various aims. This report includes the types of entrepreneurship and the difference between it and intrapreneurship. Also a relevant statistical information has provided for the impact of small scale industry in the economy along with the role of small scale ventures for the particular area. It has also been including about the nature of the characteristic skills and traits of an entrepreneur that are responsible for differentiating them from others. Also the factors which can influence the mindset of the entrepreneur from upbringing, lifestyle and the role of the society. Also a relevant example has been discussed which has proved that every person who sets up the entrepreneurial ventures for people. It provides a deep discussion of the factors supporting the venture’s success (Storey, 2016)
P1. Different types of entrepreneurial ventures and their relation with typology
Entrepreneurship is defined as the process of bringing up some innovative ideas in market in order to reduce the human labour. Entrepreneurship plays a major role in making the world technological advanced. Behind this concept of entrepreneurship there is a person who continuously thinks about the creative concept by thinking out of the box which leads to the generation of entrepreneurial ideas which is very helpful for mankind in the present scenarios. These entrepreneurs are different intrapreneurs who is an employee responsible for taking charge of various innovation for different product and services. He is restorative in approach where as an entrepreneur has an intuitive approach. An entrepreneur works in a newly established firm whereas an intrapreneur works in already established one. He is independent while intrapreneur is dependent one.
There are four types of entrepreneurial ventures which are discussed below:
These are the enterprise which runs on a large base which means have they had a very large customer base and has a huge production of products and services. They run on a large scale and aims for earning profit on a huge amount (Stewart Thornhill,2018). They usually sustain through adopting various creative idea.
Small Scale Enterprises
Small Scale enterprises are those which operates on a small base and have small investment in their business which focuses on doing business in a particular region. They usually provides employment to local people and also have approach to smaller areas only.They have few employees as compared to large enterprises.
Scalable Unit Enterprises
These are the enterprises which are newly born. The owner of these firms are entrepreneur who provides unique product and services and uses latest methods for the production of these offerings. Their aim is to provide different kinds of product which are totally advanced as compared to existing one in the market (Keith and et.al., 2016).
These are those enterprises in which the firms wants to earn a lot of profit but the amount generated is used for the noble cause to develop the society in various ways. These firms totally work for the same and provide a good quality service to the surroundings so that it can develop and get benefitted from them which is completely different from other entrepreneurial ventures. Social Enterprises provide a different vision to the nation and balances out the self centred nature of other kind of ventures (Elert, Andersson and Wennberg, 2015).
P2.Differences and similarities between various entrepreneurial ventures
These various entrepreneurial ventures have many differences such as all these large, small and scalable ventures has a aim to provide a unique product in the market whereas social ventures does not concentred on the features of their product. These private firms has tge aim of increasing their shares in the market so that they can increase their customer whereas social firms does not have these kind of concerns. Social organisation has the aim for earning profit but using it for noble causes and other charity works whereas other companies tries to build lots of profit so that owner can get many benefits and can sustain more in the economy of market. These large and small firms faces competition and formulate many strategies for survival whereas social firms does not have much concern on it because they neither compete nor want to create a threat for the survivals of others. Small and large entrepreneurial ventures completely works for the expansion of their business but social ventures focuses on the particular area for creating impact on the society. These social firms works for the local community they promote them and provide various services but private ventures focuses on their employees and provide various monetary and no monetary benefits which can motivate employee to provide quality services which ultimately affects their business. Social firms may promote their products and services at the local region where as other private firms always want to promote their offerings to much larger customers so that more potential buyers can get attracted to them.The main aim of the social entrepreneurs is to provide benefit to society whereas other kinds of firms seek for their benefits and advantages only (Burns, 2016)
There are also many similarities between these different firms as they completely focuses on their customers. They have certain mission, objectives and vision which provides them a direction where they can work for. They formulate strategies just to accomplish their aims. They have a major concern for profit earning as it would help the business in many ways. They always work on their products and want to increase the sales of the products and services. They contribute to the economic development of the area where they are operating. Focuses on the company’s production as they want to produce the best quality of offerings to the customers. They always have an objective to gain a huge customer base. There fore provides many attractive offers to attract them.