Types Of Entrepreneurial Ventures And Their Characteristics

Entrepreneurial Venture

Task:1

1). Entrepreneurial Venture

An Entrepreneurial Venture is said to be a business whose main aim is growth and profitability and that might be considered as an innovative practice. The fundamental variance between a small business and entrepreneurial venture does not lie in their kind of services and goods they are offering but their basic perception about innovation and growth. Therefore, as per Donald Sexton, power on entrepreneurship, strategic planning is said to be an essential part of the venture as compared to a small-business firm.

“Many businesses begin with an individual or single product. Those businesses are concerned toward the growth and instantly start searching for another product. It is said to be that approach of planning that provides help in distinguishing an entrepreneur from the owner of small business.”

A person or individual who commences and operates a business operation with limited resources and takes all the responsibilities of the risk, as well as rewards of her or his business, is known as an entrepreneur. The business plan is generally a new innovation, service or product, in place of associating existing model of business.

These type of entrepreneurial ventures are focused towards high-returns, with high uncertainty. The entrepreneur does not feel bad while investing money and keeping the job at stake in order to take limitless risks on a motivation, investing capital and time still on an uncertain venture.

Intrapreneurship

Intrapreneurship is similar to an entrepreneur in a large business organization. They are typically very enthusiastic, action-oriented and proactive people who can effortlessly make decision or creativities of their own, in the organization’s boundaries, in order to make innovative services and products. One of the essential aspects is that intrapreneur remains in the comfort zone as they believe that business failure does not involve any type of personal cost as it is similar for an entrepreneur because business will recuperate the loss arising from the failure.

An intrapreneur concentrate on particular concern and their area is to manage company’s procedure instead of overall business. The precise issues can be lacking skills or increasing productivity, etc. An intrapreneur can account for innovative ideas in order to serve improved situations for the company.

Intrapreneurs in the company love to be free and their characteristics substitute independence in themselves. They are fundamentally proficient in creating charts of workflow and they can envisage the forthcoming competition towards the business and how to diminish them with full swing.

Managerial

The workforce who is focused towards handling the people in the company is known as a managerial workforce. They are mainly paid workers who possess the power and responsibility to make alterations in the company with former approval. In terms of nature, the managerial workforce is very much tactical and always remain in urgency to handle subordinates. They are ultimately responsible for the daily activities takes place in the company. It is fine if they do not offer innovative ideas to the company because they are hired for the regular job or work or task.  Their duty is to think how to make employees effective and how to connect one aspect with another aspect.

Intrapreneurship

2) Lifestyle Entrepreneurship

A person who starts a business organization not for the sake of earning a profit and for the purpose of changing lifestyle is known as lifestyle Entrepreneurship. In reality, a lifestyle entrepreneur concentrates majorly on the life reward and occasionally on the business operations. This type of entrepreneur does this for their passion.

For example, Elizabeth is a lifestyle entrepreneur in EG Solution PLC as she was operating the business operations with her passion.

Social Entrepreneurship

Social entrepreneurship is said to be a method or technique by which businesses are commenced, to develop other entrepreneurs, offer funds, and offer solutions to the cultural, environmental, or social issues. This concept might vary from one organization to another organization with different aims, beliefs, and sizes.

For example, Grammen Bank is one of the Social Entrepreneurship’s examples

Topic	Lifestyle Entrepreneurship	Social Entrepreneurship
Exit Strategy	The lifestyle entrepreneurs do not have an existing plan or strategy because they operate their business operations with a passion	Social Entrepreneur is the passionate entrepreneurs with all set strategies and existing plan.
Profit Seeking	Lifestyle Entrepreneur is not concerned about the profit because they operate the business for the purpose of lifestyle.	Social Entrepreneur is always concerned about the profit as if there is a failure then they will not be able to survive in the market.
Investment	Lifestyle Entrepreneurs does not search for the investors for their business because they run the business with their own money.	Social Entrepreneurship search for different investors as they have an objective to expand the business from the initial stage and for this, they require investors to invest their money in the business organization.
Donation	Lifestyle entrepreneurs are those who do not offer a donation or believe in this concept.	Social Entrepreneur donates or charity when they will be rich.
Organizational goal	This type of entrepreneurs does not focus on the organizational goals as compared to social entrepreneur.	Social Entrepreneur is very much concerned about and focuses on the organizational goal
Organizational Structure	Organizational structure is not framed by the lifestyle Entrepreneur in the company.	Organizational structure is created by the Social Entrepreneur such that business activities are performed properly under some rules and regulations.
Location	These type of entrepreneurs are not restricted with the location because they operate the business the way they like.	These type of entrepreneurs are restricted in the locations.
Working hour	Lifestyle entrepreneurs are known for maintaining a balance between personal life and work.	Social Entrepreneurs are always ready to work for an extra hour and not for other benefits such as money.
Making corporation	They are not focused towards making a corporation.	They are normally for the corporation at a level of time.

3) Corporate and Public Sector Entrepreneurship: This type of entrepreneurship can be referred to as a company that is a division of the economy and operating activities to make a profit. Businesses of the Corporate sector are not government owned dissimilar to the businesses of the public sector, which are registered as a property of the government and offers services that are government-oriented or accessible in the stock market.

Some of the examples of the Intrapreneur venture which are the part of the public sector, as specified are 3M. A business gets famous for the supporter line of services or goods like masking tape, scotches brand tapes, and waterproof sandpaper, (Thomas, 2017). 3M is said to be a corporation of public-sector as it performs trading of the shares in their stock market. The key shareholder of 3M is Vanguard Group Inc. which had maintained 45,793,887 numbers of shares till 2017. Along with this it has various shareholders consequently lowering their liability.

One of the perfect examples in the field of corporate of Intrapreneur is W.L. Gore and it is also called as Gore-Tex fabric. It is an international company of manufacturing specific in the production of fabrics which is imitative from fluoropolymers. This business is managed in Newakrd, Delaware, privately. W.L. Gore offers its workforce 10% of their work in order to offer their innovative ideas and put their efforts on their personal projects (Vocoli, 2014).

Intrapreneurs are not the one who directly operates their business with the clients of the company. They are said to be the individuals in an organization whose purpose is to produce goods innovatively that can provide benefit to the target market and company. Same as 3M’s Dr. Spencer Silver, who unintentionally created a tough kind of glue that could be utilized in the aerospace and workforces of W.L. Gore that are offered with plenty of time to have a thought about innovative and fresh ideas that could offer advantage to the entire textile world.

4) Statistics

The meaning of SMEs i.e. small and medium-sized enterprises is a commercial with less than 250 workers. In U.K, till 2016 there were 5.4 million Small and Medium Enterprises, which was around 99% of overall businesses.

Managerial

Around there are 0-9 employees in Micro businesses. According to the report in U.K till 2017, there were 5.3 million micro businesses available, which are comprised of approx. 96% of all the businesses.

The revenue of the small business has a major influence on the U.K economy and on the other hand, the medium enterprise does not possess significant influence. Around 99% of the overall business involves small and medium business. In the economy of U.K, there is a huge competition between different industries.

Impact of Small and Micro Business

In Medium business, around 250 employees are hired in the company whereas in the case of Microbusiness there are maximum 9 people are hired which results in restricted opportunities of employment. However, the fact is that the number of businesses ate increasing which can result in increasing opportunities for employment for the youth candidates.

The revenue of the small business has a major influence on the U.K economy and on the other hand, the medium enterprise does not possess significant influence. Around 99% of the overall business involves small and medium business. In the economy of U.K, there is a huge competition between different industries.

                                                                   

5) mall and medium-sized enterprises or SMEs involve around 60- 70 % of the jobs in most of the OECD countries, with specifically major share in Japan and Italy, and a comparatively less share in U.S. but, there are various jobs particularly in the nations which have reflected record of employment including Netherland and United States

Some indicating points to the significance of age, in spite of the size, in the job creation: new companies create more employment opportunities as compared to their share. Though not even half of them survive for the longest time period and only a portion is developed in the high-growth firms which offer significant contributions in the job creation. High job turnover raises issues for the security of employment and small formations are frequently get exempted from providing notice to the workers.

Small companies also incline to invest very less in the training programs and depend comparatively more on the external recruitment for rising competence. The demand for dependable, pertinent and globally comparable information of small and medium enterprises is on the growth, and statistical offices have initiated expanding their publication and collection of data. Global comparability is yet very weak, though, because of divergent size-class explanations and sector classifications. In order to enhance valuable analysis of policy, OECD governments have to enhance their build-up of data, deprived of making additional problems for companies by the load of extreme paperwork.

6) Various high-growth Small and Medium Enterprises make significant contributions in the job creation and efficiency progress in the OECD area. In the initial stages, capabilities of the management are important for the survival because company grows, innovation strategies and human resource increases significantly. By the time company establishes, innovation becomes very important for the growth of the company. The fastest rising applicants are those that convert policies into planned actions in the form of Research & Development, training, and innovation, which offer maximum emphasis on the employment of talented and skilled workers and employee’s motivation, and balance the improvement of their competencies in diverse areas – the last being mainly significant in the sector of high-knowledge.

Lifestyle Entrepreneurship

The central hurdle to the progress of high-growth Small Medium Enterprises is government regulations, foreign market access, market failures in the capital markets, problems in hiring skilled and talented employees, and indirect labor costs. Small and Medium enterprises that are owned by women are progressing very fast as compared to the overall economy in various OECD countries, permitting capitalization of the knowledge of trained and skilled women who can else be obstructed in corporate development because of the “glass ceiling”.

The augmented flexibility intrinsic in possessing one’s business permits women to add to their family’s income by maintaining responsibilities of family and balancing work. Though, the women entrepreneur’s economic potential stays partially untouched; measures are essential to enhance statistics and information in this particular field, along with strengthening the prerequisites for technology, networks, and financing. Entrepreneurship inclines to differ evidently across regions. The augmented number of regions is considered to be creating dynamic firm’s clusters which get benefited from “information spill-over” and intangible factors. Policies for regional development have been established to support those regions that are suffering from declining stage.

Critically inspect the growth, development, and scope of the entrepreneurial ventures

The entrepreneurial ventures are very essential for all the company’s level. The development and scope of the sector are increasing as the downturn is declining daily in the United Kingdom. Citizens are today investing in new and innovative businesses apart from their own business and youth are very much concentrated towards conducting their own business in place of doing jobs. In this sense, it can be said that the scope and increasing.

On the other side, not a single company will be operated smoothly deprived of the format of 3 entrepreneurial ventures. Individuals today are very much innovative and putting their efforts to get involved in various ventures in the company.

However, one thing is very simple in the figures that the development and scope of these ventures are completely open for the SME’s as approx. 99.03% of the overall business is operated by the SME’s. Therefore, there is high profitability, that in future all the small businesses will accept the venture in a competitive field.

TASK 2

1) The entrepreneurial mindset

Executive Summary

Entrepreneurship is not just about initiating new business venture, it is just a mindset. It needs some type of skills and knowledge to become a successful entrepreneur.  Several individuals are born with this type of mindset; others grab their attitude and skills through education. In the current scenario, the education aim is to get a job in a well-known organization with a heavy package. Education is today completing with an attractive placement. After the placements in a company, there are only 2 possibilities. One is either student do get receive the job for which they desire or another one is that student is not able to fit in the organization’s criteria. Any of the two circumstances result in dissatisfaction with the job and unemployment which also lead to suppression and frustration of the knowledge of the student.

Social Entrepreneurship

The requirement of the time is to absorb attitudinal qualities of motivation, positivity, open-mindedness, innovation, a balanced approach towards the life and telescopic vision. All these traits are imbibed in a successful entrepreneur. An entrepreneur is an individual who can deal with the challenges, is an innovator, a leader, a risk-taker, a visionary, a decision-maker, and one who can form agreement and direct from the front. Today, we require these type of workforce, who possess this attitude, such that they can be adjusted in the organization’s structure, who can create a tough position with their operations, who can convert the discussions in their own favour, who are dedicated and passionate towards their effort and also who possess determination and the courage to deal whatever come in their way. These kinds of employees are said to be an asset that can contribute to the organization’s growth they are related with.

Furthermore, if such type of individual starts their own business, they contribute to the economy’s total growth of the country. As it is known that the backbone of the economy of the MSME sector, therefore, the development of the sector is very important and this will lead to the economy’s propulsion.

Either it is the worker of the company or the business owner, the presence of entrepreneurial attitude and abilities are obligatory. This might be a genetic attribute or might be developed by appropriate education. If the system of education generates this type of attitude and talent within the students, then they might be able to modify the earth’s face with their advanced ideas and dynamic energy. This increases the responsibilities of institute’s management which are at the center of the responsible position for the teaching management abilities to the students. The institute’s management and its faculties have to make an environment that is appropriate for the upcoming generation entrepreneurship yield. The correct environment and platform can assist the student in developing the mindset to become an entrepreneur that will allow them to become better owners and employees of businesses. The unseen aptitude and abilities of the student should be recognized and refined to perfection. The course of management must not only explain the abilities to handle a business however also nurture the anticipated approach and mindset resulting to the modification in the complete personality of the student.

Entrepreneurial leadership

Though improbability may origin numerous entrepreneurs to restriction, it could be utilized for their benefit.  Indeterminate circumstances are filled with different opportunities.  The job of all discriminating entrepreneur is to unceasingly classify high-potential opportunities of business and using these opportunities with full confidence and speed.  Therefore, uncertainty can be converted into their friend, not the enemy.

Entrepreneurial leaders are different from the executives in terms of their personal does.  These lie under 6 sets: setting the climate of work, education, age, composing opportunity-looking for and moving the ventures forward individually.

• Practices of setting the climate makes a universal sense of insistence for everybody to operate or perform new initiatives of business. Offer an uneven share of own time, discretionary resources and attention in searching and assisting new model of business.   Gary Wendt, who drove enormous progress at the economic services of General Electric, validated this principle.  He reliably and certainly created new business development and considered them to be the item of high priority agenda in every meeting and chance meeting.
• Arranging opportunities that are looking for eliminating uncertainties from people by obviously identifying what kind of entrepreneurial opportunities are required it is known as ‘ballparking.’ An entrepreneur of Swedish whose small business out-shined at technology CAD/CAM defined a field of entrepreneurial playing for his individuals of “50 to the power of 4.” This defines that he was concerned in those offers that possessed the possibilities to offer 50 million of Swedish kroner ($8 million) in terms of profits, by taking 50% of the market share, with margin of 50% in approx. 50 countries.  The reason was to pursue opportunities where he resolved an actual issue for sufficient consumers that he might capture the share of lion of an impregnable worldwide market deprived of operating with opposition from international companies. This offered his people possibility, however also kept them concentrated towards those opportunities where he analysed that his business can create a tough position in the market.
• Precise practices of hands-on management identifies that the mission for awareness is the sole essential competition source difference that can be brought in a company by the team of management.  For instance, Linda Mason and Robert Brown, who are the founders of a child, care centers i.e. Bright Horizons exploited on a perception which permitted them to make an appealing model of business in a usually unappealing industry. In place of concentrating on single family’s needs for the care of the child, the couple in its place redefined their consumer as the corporations.  In 15 years, the business venture cultivated from a notion to a flourishing business with around 340 centres.

Launching the Entrepreneurial Frame

The entrepreneurial frame describes your objectives. The indication is to trust you and the team members to accept those enterprises that go outside measly incremental development to actually make a modification. Framing has 2 portions: one is the success definition, and another one is an enunciation of planned direction.  

The procedure for creating a frame includes working by subsequent questions:

1. If you were supposed to do some activities in the following 3 to 5 years that you, investor of company and the boss would be regarded as the main win, what would this seems to be like?
2. What is the lowest profit amount you want from the fresh business ventures (at the maturity) in order to do a change into your business?  From your recognized business, what growth rate should be sustained?
3. What is the upsurge in the profitability you want to attain in the subsequent 3 to 5 years?
4. What ROI you are looking for?

The outcomes could be considered as:

 

	Desired performance	Present performance	Specification of the Success
Profit of last year	At least 10% enhancement	200	220
Sales return or return on sales	At least 5% enhancement	10%	10.5%
Required revenue in order to earn profit	10.5% (above)/ 220(above)	2000	2095
Return on assets	10% enhancement	15%	16.5%
Required assets in order to make profits	ROA objective/ Goal of profit	1333	1333

Next coherent strategic direction is done by creating criteria for screening which is dependable with the ‘ballparking’ description. Criteria for Screening-out are said to be “drop dead” if an offer has that features.  Criteria of Screening-in are “more the merrier” (it means the more of these specified characteristics, there will be a more appealing opportunity).  Consider by the subsequent questions:

1. What have the minimum required businesses in which you have been involved with, and what are the features that have made them disagreeable?  What are the areas that it talks about that needs to be avoided in the coming future?
2. What things made an opportunity satisfying for you? What does this thing talk about the parts to follow in the coming future?
3. Assimilate these declarations into a list of at least ten statements of “screen out” and ten statements of “screen in” that gets your experience.  A “screen out” can be considered as “the opportunity that will intake a long time from our important people.”  A “screen in” can be a striking market where we actually have a tough position.  Try to create your statement of screening as precise to your business as probable.

Ultimately, the objective is to possess around 10 statements of screening in, 10 statements of screening out that company can decide precisely imitate the kinds of businesses that are anticipated and not anticipated.

Creating a register of well-stocked opportunity

A list of the opportunities is said to be a resource of possibly appealing new and fresh opportunities of business. The notion is that any time, you have ironic potential opportunities set to select from, in place of possessing the choice of those that achieved to persist a corporate examining procedure.

2 techniques are very valuable here, the one is said to be an analysis of the chain of consumption. The chain of consumption is utilized to chart the complete experiences of the customers with your service or product offering. It initiates with the activate event or condition that makes the consumer attentive of a want and stays through every step comprised in being your consumer.  Any connection in the chain has different probabilities that you can expose by searching into the experienced of the consumers at every link or connection.

Another technique is quality recording.  This involves how effectively your products or services are tempting to the desires of the customers now.  Initiate just, by recognizing an offering and a significant section of customer. Then examine to search where you can improve optimistic qualities and remove undesirable ones, as specified in the chart.

With the help of these 2 techniques, you will be capable to identify more effective ideas that can be executed with the possible resources you possess.  The challenge is to examine them to the maximum level while understanding that you do not desire to over-emphasize present running business or new business venture.

                                                             

Generating Emphasis by utilizing actual options reasoning

Identical to investing in a financial choice, actual choices reasoning includes doing small investments that offer you the right of determining later.  The idea behind this is to edge your hitch experience till the advantageous opportunity probability is revealed. In combination with the restrictive risk, an options approach enables you to make strategic alignment and focus through your initiatives portfolio.  The portfolio talks about whether the market is definite or it is not, and whether the environment of technology is definite or not, as reflected in the chart.

Chart those creativities that the company is following. The recording must imitate your policy. If the policy is to develop the present business you need to put extra stress on the section i.e. lower left-hand.  If the policy is an examination, you will require additional options. Companies normally acquire from this practice that they are captivating various projects and those projects that are present in the tube are not reliable with their policies.  Sole method to fix this is by assigning resources to various sections of the chart before the projects are permitted when they are framed as competing with the comparable projects for resources.

                                                                         

Endorsing adaptive implementation by discovery-driven planning

Detection of ambitious planning is a strategy to study, not to demonstrate that you have every answer when you have written the plan or strategy. The technique needs the collaboration of five procedures that are employed together.  These procedures are:

1. Defining the frame (goals) at the project level;
2. Forming market and competitive benchmarks;
3. Describing operative specifications;
4. Recording assumptions;
5. Launching important milestones.  In indeterminate environments, conservative planning does not make any sense.  In its place, plan with restraint to the subsequent main milestone, then break and re-plan as there is the availability of the new information.  

In all the specified methods, the concentration is on the identical actions of chasing opportunity by staying attentive.

McGrath, R. G., and MacMillan, I. C. 1995.  ‘Discovery Driven Planning’ Harvard Business Review.  July-August, 1995.  This article outlines the technique in more depth.

McGrath, R. G., and MacMillan, I. C.  2000.  Assessing technology projects using Real Options Reasoning.  Research-Technology Management 43(4) pp. 35-49.  This article offers an evaluative methodology for uncertain technologies.