Entrepreneurial Ventures

Entrepreneurial Ventures

An entrepreneur is an individual who starts and runs a business with limited resources and
planning, and is responsible for all the risks and rewards of his or her business venture. The
business idea usually encompasses a new product or service rather than an existing business
model.

Such entrepreneurial ventures target high returns with an equally high level of uncertainty. The
entrepreneur is willing to risk his or her financial security and career, spending time as well as
capital on an uncertain venture, arranging for the necessary capital, raw materials,
manufacturing locations and skilled employees. Marketing, sales and distribution are other
important aspects which are controlled by the entrepreneur.

It can be defined as an organization that places innovation and opportunism at its heart in order
to produce economic or social value.

Although the importance of entrepreneurship is evident and interest continues to grow,

high-growth ventures tend to be featured because they produce a significant amount of job and
wealth creation in the United States. Some have argued that the focus of public policy should be
on these ventures, while others argue for a more diverse approach to effective public policy and
entrepreneurship.

This article offers a “portfolio approach” to public policy that focuses on the types of
entrepreneurial ventures that demonstrate the epitome of competition and provide the greatest
societal value.

The ​types of ventures​ may be classified in terms of size (microenterprise, small/lifestyle,

medium size, and gazelle) and growth rate (low, managed, or fast growth). Each type has
different needs and makes unique contributions to the economic vitality and value of society.

Microenterprise
A microenterprise is a small business that employs a small number of employees. A
microenterprise will usually operate with fewer than 10 people and is started with a small
amount of capital. Most microenterprises specialize in providing goods or services for
their local areas.

Microenterprises, while individually small in size and scope, can collectively represent a
substantial portion of the economy and employment.

Types of businesses that are considered microenterprises include the following:

 Lawn and landscaping companies, Street vendors, Carpenters, Plumbers, Independent
mechanics, Machine shop operators

Lifestyle
A lifestyle business is one that is formed for the purpose of sustaining or supporting the
income and personal requirements of the owners. It is still, to some extent,
profit-oriented, but revenue maximization is not at the top of its list of priorities.

The ultimate goal of a lifestyle business is the creation and sustenance of a pleasant and
harmonious balance of life and work of the business owner. It generates just enough
revenue to let the owner enjoy his or her current lifestyle, without adversely affecting his
or her personal life.

Enjoyment is usually a key point in a lifestyle business. Owners set up the business
based on their personal interest or passion – it could be a hobby or simply something
that entertains them. This ensures that they actually love and enjoy their work on their
business.

Here are some of the most common examples of thriving lifestyle businesses today.

Professional blogging​.
This is most probably the quintessential lifestyle business. Many bloggers now make
their living through blogging.

​ These writers prefer to take the freelance route instead of

Novelists, poets, journalists…
getting employment in established organizations or companies. They travel, go places,
experience things and write about them.

Consultants and advisors​. Services of consultants are sought after these days, ranging
from matters regarding finance, law, technology, health, travel, real estate, and more.
Online stores. E-commerce also falls under the lifestyle business category if they meet
the definition of one.

Medium Size
Venture capital funds are investment funds that manage the money of investors who
seek private equity stakes in startups and small- to medium-sized enterprises with strong
growth potential. These investments are generally characterized as high-risk/high-return
opportunities.
It is a type of equity financing that gives entrepreneurial or other small companies the
ability to raise funding. Venture capital funds are private equity investment vehicles that
seek to invest in firms that have high-risk/high-return profiles, based on a company's
size, assets, and stage of product development.
Gazelle
A gazelle venture is…
Investable​. High-net-worth individuals (when acting alone, they are called “angels”)
purchase equity in these ventures with the unenforceable expectation that they will
receive multiple times this investment in return at some time in the indeterminate future.
The investor expects the future value of the venture to increase multifold.

High growth.​ For a venture to be worth five or 10 times its value requires lots of growth,
both top line and bottom line.

Scalable​. To grow fast requires that the business can scale — significantly grow revenue
(top line) without equally increasing cost (bottom line). The venture must be able to move
beyond its founders. This is accomplished through process and a replicable business
model.

Defendable intellectual property​. Many scalable business models depend on some

“secret sauce” to provide a barrier to entry from competitors.

In a gazelle venture, the founders “swing for the fences,” targeting a big outcome
(harvest or exit) with a low probability of success. They do it for the investors (including
themselves) with the end as the goal.

Entrepreneurial Ventures are often highly correlated with entrepreneurial characteristics

Ability to Adapt to Change

Have the ability to identify and create business from the opportunities offered by change,
and they benefit from the new openings

Internal Locus of Control

Believe that the future is within their control, and that they are responsible for their own
success

Product Driven
Highly motivated in business because of the uniqueness of their products

Opportunity Driven
Doesn't continue on the same line of business for a long time. Instead they always seek
ways to expand their business scope

Proactive
Learn to follow trends and deal with changes/difficulties as it happens or before it
happens
Calculated Risk-Taker
A chance of exposure to loss or injury that might be undertaken after its advantages and
disadvantages have been carefully calculated. (Introducing a new product or new ways
of doing things)

Value Creation
Performance of actions that increase the worth of goods, services or even a business.
Innovative ways they take advantage of new materials, technologies, and processes.

Regular Business vs. Entrepreneurial Ventures

Speed of Wealth Creation

Entrepreneurial Ventures create substantial wealth more than regular businesses, and they
create it much faster too

Risks
The risks of an entrepreneurial venture is usually high because unlike regular businesses they
go out of their way to make products that did not exist in the market at that time

Small Businesses vs. Entrepreneurial Ventures

There is a fine line between being a small business (SB) owner and an entrepreneur—the roles
actually have a lot in common—but there are distinct differences that set them apart. ​Small
businesses​ usually deal with known and established products and services, while
entrepreneurial ventures​ focus on new, innovative offerings. Because of this, small business
owners tend to deal with known risks and entrepreneurs face unknown risks.

Limited growth with continued profitability is what is hoped for in most small businesses, while
entrepreneurial ventures target rapid growth and high returns. As a result, entrepreneurial
ventures generally impact economies and communities in a significant manner, which also
results in a cascading effect on other sectors, like job creation. Small businesses are more
limited in this perspective and remain confined to their own domain and group.

Examples of Entrepreneurial Ventures

Chatbot-creating Agency
Chatbots are in, and businesses of all sizes are adopting them as part of their marketing,
sales, and customer services teams. These bots allow businesses to cut costs while
increasing revenue. What many of them don't know is that creating a chatbot isn't as
difficult as it once was.

Blogging or Vlogging
Blogging is a great way to share information with people. While you may not see how
you can make money from giving people free advice, the opportunities are actually
 endless. You first need to increase your visitor numbers and gather a loyal following.
Once you have, you can sell advertising space to companies as well as enroll in
programs like Google AdSense.

In addition to the above, you can create ebooks or printed copies and sell them on your
blog and through platforms like Amazon. Plus, if writing isn't your thing, worry not. You
can do all the above through video instead of written format. All you need is a computer,
webcam or camera, and a website.

Bibliography

https://www.slideshare.net/ichieone/entrepreneurial-venture-and-its-components
https://www.investopedia.com/articles/investing/092514/entrepreneur-vs-small-business-owner-
defined.asp
https://www.investopedia.com/terms/m/microenterprise.asp
https://www.cleverism.com/how-to-start-a-lifestyle-business/
https://www.investopedia.com/terms/v/vcfund.asp
https://upstatebusinessjournal.com/gazelle-venture-lifestyle-business-whats-difference/