Overview about Entrepreneurial Ventures

Chapter 2
Overview
LECTURE CONTENTS
Definitions

Types of Entrepreneurial Ventures

Key Elements of Entrepreneurial Ventures
The Entrepreneurial Process
Challenges of Entrepreneurship
Barriers & triggers to entrepreneurship
Benefits and Opportunities of Entrepreneurial Ventures

Disscussion
What is
Entrepreneurial
Ventures?
Entrepreneurial Ventures
• Entrepreneurial ventures are business
initiatives or enterprises created and
managed by entrepreneurs with the goal
of bringing innovative products, services,
or processes to the market. These
ventures are typically characterized by a
high degree of innovation, a willingness
to take calculated risks, and the pursuit of
new opportunities.
What is
Entrepreneurship?
Entrepreneurship Defined

• Entrepreneurship is the ability and

readiness to develop, organize and run
a business enterprise, along with any of
its uncertainties in order to make a
profit. The most prominent example of
entrepreneurship is the starting of new
businesses.
Entrepreneurship Defined

• In economics, entrepreneurship connected

with land, labour, natural resources and
capital can generate a profit. The
entrepreneurial vision is defined by
discovery and risk-taking and is an
indispensable part of a nation’s capacity to
succeed in an ever-changing and more
competitive global marketplace.
What is
entrepreneur?
 9

Definition of entrepreneur
Entrepreneurs are defined by
their actions:
They create and/or exploit
change for profit, by innovating,
accepting risk & moving
resources to areas of higher
return
 10

Definition of entrepreneur
Intrepreneur
A salaried employee - profits & risks of their work go
to their employer
Social entrepreneur
An entrepreneur working in an enterprise with a
social purpose (a social enterprise)
Civic entrepreneur
An entrepreneur in a civic organization
Serial entrepreneurs
Technology entrepreneurs
 •Test: Can anyone be
an entrepreneur?
• This survey assesses your entrepreneur type
based on your personality traits.
• Discover your entrepreneur type, the size and
kinds of businesses favorable from your
personality fit standpoint, along with tips on
how to succeed in business.
• Required time: 6 minutes

Click here
Types of Entrepreneurial Ventures
 14

Start-up Defined

These are often technology-driven

companies that aim to disrupt existing
markets or create entirely new ones.
 15

Start-up typologies

Salary-substitute firms
Lifestyle firms
Gig-workers
Owner-managed businesses
Growth businesses
 Gazelles & unicorns
 16

Small Business Defined

Traditional businesses, such as local stores

or service providers, can also be
entrepreneurial ventures when initiated and
managed by individuals or small teams
 17

Social Enterprise Defined

These ventures prioritize social or

environmental goals alongside profits and
aim to address specific social issues through
sustainable business models.
Key Elements of Entrepreneurial Ventures:

Entrepreneurial ventures are often based on novel ideas,

processes, or technologies. They seek to create value by
offering something new or improved.

Entrepreneurs assume a degree of risk as they invest their

time, money, and effort into unproven ventures. Success and
failure are both possibilities
Key Elements of Entrepreneurial Ventures:

Efficiently managing resources, including financial capital,

human talent, and technology, is crucial for the success of
entrepreneurial ventures.

Successful ventures are those that meet the needs and

demands of a target market. Understanding customer
preferences and market dynamics is essential
 The process begins with identifying a
business opportunity, often inspired by
Idea market trends, personal experiences, or a
Generation desire to solve a particular problem.

Entrepreneurs create
Successful ventures can
business plans to outline
The
grow and scale, expanding Growth Business
and Scaling Planning their vision, target market,
their operations and impact.
Entrepreneurial
competitive analysis,
financial projections, and
Process: more.

Securing funding,
The venture is introduced to the Market Resource assembling a team, and
market, and the business operates Entry Acquisition obtaining necessary
and evolves according to the plan. resources are essential
steps.
Challenges of Entrepreneurship

The future of entrepreneurial

ventures is often
unpredictable, making
decision-making challenging
 Challenges of Entrepreneurship

Entrepreneurs often
invest their own
capital or seek
funding from
investors, which can
be risky.
Barriers & triggers to entrepreneurship

Push factors (situational):

Poverty
Unemployment
Disagreements
‘Misfit’
No other option
23
Barriers & triggers to entrepreneurship

Pull factors (psychological):

Independence
Achievement
Wealth
Recognition
Personal development

24
Barriers & triggers to entrepreneurship

Barriers to start-up
Need for regular income
Fear of loss of capital
No capital
Risk averse
Doubts about ability

25
Barriers & triggers to entrepreneurship

Trigger

26
 Challenges of Entrepreneurship

Competition: The
business world is highly
competitive, and staying
ahead of rivals is a
constant challenge.
Entrepreneurial Ventures Opportunity

Diversity of industries and technological developments.

There are investors willing to spend money.

Opportunity to promote startup products

Support from the community

Benefits of Entrepreneurial Ventures

Innovation: They drive innovation by introducing new products,

services, and business models

Job Creation: Startups and small businesses are significant job

creators.

Economic Growth: Entrepreneurial ventures contribute to

economic growth by adding value to the economy.
Global Entrepreneurship Monitor
ECONOMIC GROWTH

LEVEL OF ENTREPRENEURIAL ACTIVITY

Entrepreneurial Entrepreneurial
opportunity capacity

Demography Education Economic Culture

infrastructure

31
 New venture creation

Total Early-stage Entrepreneurial

Activity (TEA)

Owner-
Potential Nascent New owner-
manager
entrepreneur entrepreneur manager
(> 3 years)

Conception Firm birth Persistence

Creativity
Total early-stage Entrepreneurial Activity (TEA) Rate: Percentage of 18-
64 population who are either a nascent entrepreneur or owner-
manager of a new business

32
 Social enterprise criteria

Must have a clear social or environmental mission

set out in their governing documents
Must generate the majority of their income through
trade
Must reinvest the majority of their profit
Must be autonomous of the state
Must be majority controlled in the interests of the
social mission
Must be accountable and transparent

Social Enterprise UK 33
 Three systems of the economy

Global

Public
National Private sector services &
government
Regional
Social/
Local voluntary
economy

Community

Trading/market Non-trading/planned

34
 Conflicts within social enterprise

Commercial vs social objectives

Democratic accountability

Nature of social objectives

In-class Activity
Starting a business with zero capital,
is it feasible?
 What did you
learn today?
https://tse4.mm.bing.net/th?id=OIP.-
jcbMANufRR83kymHd744AHaEZ&pid=Api&P=0&h=220
Entrepreneurial ventures are the lifeblood of innovation,
economic growth, and job creation in economies worldwide.
They require a combination of vision, determination, risk-taking,
and resourcefulness to succeed in the ever-changing and
competitive landscape of business.
Thank you for listening!