Entrepreneurship and Small Business Management

Types of Ventures
Sole proprietorship Single owner
No legal or financial distinction
Owner fully accountable
The focus is totally on products and services
(Jhonson, 2019).

Partnership Two or more owners

Financial and legal responsibility on all
owners
Registered business
Decision making among partners (Victoria,
2021)

Limited partnership Silent investors who are not interested in the

daily working of the business
Two sets of partners where one is generally
involved in daily working and the other is
limited partner limited to investment only
(Lawman, 2020).

Corporation Fully independent business

Number of stakeholders
Profit is taxed twice at a corporate and
personal level (KENTON, 2020)

Limited liability company Owners are referred to as members

One managing member to handle the
situation
No taxation as own business entity
Profit and losses are with limited members
Members are not personally liable for all the
losses (FERNANDO, 2021)

Non-profit organization Focused on social cause

Money earned is for paying expenses of the
company
Many are tax-exempt (FOLGER, 2020)

Cooperative Owned and run for the benefits of members

 Entrepreneurship and Small Business Management

using its services (Mospi, 2021)

Franchises The license is given by the parent company

to open a franchise using the name,
knowledge, and trademark of the parent
company (Pratt, 2021)
Table 1 Types of Business Ventures