Entrepreneurship And Small Business Management Business Essay (Essay Sample)

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
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Part 1:
Entrepreneurial Ventures
Entrepreneurship is one of the most significant skills possessed by humans (Leung, Moneta, and McBrice-Chang 2005, p. 335). The concept involves organizing, managing, as well as assuming the risks associated with a business. There are several types of entrepreneurial ventures including microenterprise, small, medium-sized, and large ones. Regarding micro enterprise ventures, they are mostly made up of first generation entrepreneurs who do not necessarily have any background in the field. Indeed, people falling into this category usually intend to make profits making them survival ventures because an entrepreneur is all about providing basic subsistence, which reflects a kind of hand to mouth experience. This type of investment is followed by small or lifestyle that is meant to provide a relatively stable stream of income for owners. In fact, lifestyle entrepreneurial ventures increasingly assume a kind of business set up for profit purposes all of which makes them considerably large compared to micro enterprises (Crane and Sohl 2004, p. 99). To this end, they are characterized by astute management practices including those associated with strategic priorities, hiring, goals, and others. Similar to micro enterprises, family entrepreneurial ventures can be categorized as survival enterprises because they are developed for the owner and his family (Chang 2001, p. 6). The suggestion is that these ventures take the shape of a hand-to-mouth experience in which the entrepreneur is increasingly concerned with making profits. Indeed, this type of business venture may avoid formal registration, which might involve avoiding the involvement of premises altogether. Other characteristics may include relatively few assets, as well as the operation on a cash basis. The implication is that the entrepreneurial venture exists to provide for rather basic personal financial needs, and this means there may be no capacity for reinvestment once costs are covered. This has led to suggestions that the ventures classified as small or family are launched because of push factors, as the business usually operates in an increasingly competitive as well as largely undifferentiated market.