In this present era, entrepreneurs are considered as the national assets that need to be motivated, cultivated along with remunerated. Entrepreneurship is highly important fact for any economy because it changes the way any person live as well as work so that standard of living can be improved. Therefore, economic development if any country is entirely dependent upon the entrepreneurial venture's development. Development of entrepreneurial ventures not only improves the economy of any country but it also reduces the unemployment. This assignment is intended to describe the importance of entrepreneurship and small businesses enterprises.
P1) Different types of entrepreneurial ventures and its relationship with the entrepreneurship typology:
According to Morris et al. (2016), entrepreneurship refers to the willingness for developing; managing along with organising business ventures so that profitability can be achieved. Therefore, entrepreneurship is all about starting a new business. Any new business is generally formed as the small and start-up businesses and then strategies are developed so that the organisation can be maintained on long run basis. Most of the entrepreneurial ventures are developed for gaining profitability, though there are some entrepreneurial ventures that are developed for creating some social wellness for the societies (Morris, 2015). An entrepreneurial can be run or maintained by a single people or it can be initiated and maintained by two or more people. Various entrepreneurial ventures are there such as high growth, low growth along with the lifestyle ventures.
It has been observed that a high growth entrepreneurial venture is mainly formed for the creation of huge profit and expansion of the businesses into various areas so that it can help the organisation in maintaining sustainability in both the international and national locations (Bruton et al. 2015). Any high growth organisations are generally technology-based and innovation based organisation so that they can achieve competitive advantage over their competitors. However, it is really difficult for any entrepreneur in developing high growth ventures in the initial stage because lots of process needs to be completed here. It has been observed that mainly first generation entrepreneurs are there that are associated with the development of this kind of ventures (Alvedalen and Boschma, 2017). These kinds of ventures are mainly formed with the help of the innovative skills of the entrepreneurs so that a superior quality unique product can be generated to create the huge amount of profitability.
On the contrary, small profit organisations are not developed for the generation of profitability or huge expansion of the businesses (Alvedalen and Boschma, 2017). The main intention of the small profit entrepreneurs is leading a decent life rather than becoming a profitable entrepreneur in their newer future. One of the effective examples of this kind of businesses is the Mom and Pop stores which have the presence in only one location that is London (Bruton et al. 2015). This business is one of the sole proprietorship businesses that is the business is run and maintained by the only owner. As mom and Pop store is one of the family-owned business so the owner gains the entire sets of risks as well as income. Mainly small-scale entrepreneurs are those entrepreneurs that are associated with running and maintaining the small profit entrepreneurial businesses where the owner is wholly related to making every type of decision and strategies for developing markets (Alvedalen and Boschma, 2017). This kind of companies mainly hires fewer numbers of employees for performing common kinds of tasks, and they are not involved in developing a massive volume of sales.
Lifestyle ventures are the entrepreneurial ventures that are associated with setting up any business and running the company by the founders with the particular aim to achieve a sufficient level of income and provide any foundation for the achievement of any active lifestyle (Bruton et al. 2015). Attain huge profit is not the primary aim of the lifestyle entrepreneurship because attaining the tremendous amount of growth may destroy the primary motive for the lifestyle ventures for which the organisation has been formed. In any lifestyle ventures, there are not any kinds of strict rule for arranging the meeting, specific dress codes of particular hours for working. Pure entrepreneurs are those entrepreneurs that are associated with organizing this kind of business ventures (Alvedalen and Boschma, 2017). This kind of entrepreneurs do not run and maintain businesses for the achievement of the financial profit, and they mainly run any business for satisfying their contentment. Pure entrepreneurs are effectively encouraged in assessing their expertise along with their businesses performances.
P2) Similarities and differences among different entrepreneurial ventures:
There are various types of entrepreneurial ventures that have the distinct level of characteristics based on the roles as well as responsibilities. Though along with the differences, there are some similarities among the features as well (Autio et al. 2014). The below-mentioned table effectively describes the similarities along with the discrepancies between different types of organisations that are public, social and private organisation. The next table describes the similarities and differences among differently sized organisation that are medium, micro and small en