entrepreneurial ventures

1. Smart City Jakarta
Introduction to
Entrepreneurship
Lecture 2: Entrepreneurial Ventures

2. Lecture 2: Entrepreneurial Ventures
Ownership of Business
Type of Business
Size Of Business
Typology of Entrepreneur
Similarities Between
Entrepreneurial Venture

3. Ownership of
Business

4. -Public
Public business is a business that is owned by the state or central governor. Despite of being
owned by the government, it is managed by individuals with clear objectives and roles made by
the government. The individuals are often called as the board of directors (Borrington &
Stimpson, 2013). For example Pertamina as it is listed as persero (government owned company)
(Pertamina, n.d).

5. - Private corporation
Individual company is a business entirety is owned by one individual, it is most common for
small to medium business. Lastly is group company which the business is owned at least by two
person. Commonly, this group of business formed into a family, corporate and joint stock
company(DOBRIN, 2015).
corporation, a business that has separate legal entity with a the business owner. Resulting
subject such ownership of business properties, contracts, being sued and suing another party is
made under the business name not the owner’s. In conclusion, a private corporation is business
that is owned by individuals but can by itself stand as a separate party from the owner (Iwai,
2001) which has the role and objective to earn as much profit for the owner. The example of
private limited cooperation is IKEA as stated in the website , that IKEA has a particularly small
shareholder (Investing Answer, n.d.).

6. Type of
Business

7. - Private
Private limited company is another party separate from the owner, this allowing the
owner to have a seperate account from the business itself. Meaning that if business
failed the owner’s personal belonging would not be taken away in order to pay back
the debt of of the company, this could be called separate legal entity. Being a limited
company allow the business to have the presence of shareholder, however private
limited company does not allow public to buy the share. Shares should only be bought
by individual that is agreed on by the other shareholder (Borrington & Stimpson,
2013). Thus, allowing private limited company to have a roles and objective and role
to give the most profit to the shareholders (Leonard, n.d.). For example Pt Muara
Profile as owned by Pardomuan Natio (MPI, n.d.) .

8. - Public Limited
Public Limited company is a business that has separate legal entity with the owner like stated in
the paragraph before. Allowing the business owner to be able to obtain the benefits, however,
unlike the private business allowing the owner to keep all the business’s information
confidential, being public limited company need the business to be open to the public. Resulting,
the business to have the ability to invite public in the company this called shareholder.
Shareholder would invest capitals in to the company and in return get their dividend by the end
of the month (Borrington & Stimpson, 2013). Therefore, Public limited making the objective and
role of public limited company to be able to sell stock to the public (UKPLC, n.d). The example of
public limited business Sari Roti as Sari Roti has entered stock exchange as (ROTI) (Sari Roti,
n.d.).

9. -Social Enterprise
Unlike all the type of business above is that although they need profit but the social objective
and role has place a more importance in the business. This meaning that social enterprise is right
in the middle of non-profit organization and conventional business and maybe legally registered
as either. However, different from non profit organization there earning is all made by the
company themself. Thus, social enterprise has the definition a organisation that runs like a
business but has a social purpose (Leonard, n.d.). The example is CSH Surrey which is a
pioneering social enterprise in the healthcare world, run by the nurses and therapy teams it
employs(Social Enteprise, n.d.).

10. Size of
Business

11. - Micro
For business to be qualified as a Micro business it should have asset of Rp.50.000.000,- not
including land and building, and sales of Rp.300.000.000,- (Maretha, 2016). The main objective
and role of a Micro business is “survival”, obtaining profit and survive in the market (Tambunan,
2011). For example Ayam Potong Nurani as stated in UMKM Jogja (umkm.jogjakota, n.d.).

12. - Small
A business need to have Rp.50.000.000,- to Rp.500.000.000,- of asset not including land and
building to become small business. In addition, the business need to have a sales of
Rp.300.000.000,- to Rp.2.500.000.000,- (Maretha, 2016). The main objective and role of a small
business is to grow and maximize the profit of the company (Tambunan, 2011). For example
pecel lele hendrix, it is small business as the business only own one small store and earn Rp
4.000.000 per day, average of Rp.1.440.000.000 yearly (Muhammad, 2018).

13. - Medium
For a business to grow from small to medium, it need to increases asset sales.
For assets the business should be able to obtain h Rp.500.000.000 to
Rp.10.000.000.000,- not including land and building, while the sales
Rp.2.500.000.000,- to Rp.50.000.000.000,- (Maretha, 2016). The main
objective and role is grow, expand the current business and make as much profit
(Tambunan, 2011). For Example BLP cosmetic, with sales average of 1000
product per day with average price of Rp.100.000, making the sales to be
Rp.36.000.000.000 on yearly basis (Putra, 2018).

14. - Large
The business need to be able to obtain Rp.10.000.000.000,- of net asset not including land and
building, and net sales of Rp.50.000.000.000,- (Maretha, 2016). The main objective and role of
large firm with large production is maintaining position and taking over competitor in the
market (Money Matters, n.d.). For example Sari Roti , it has sales Rp. 2.491.100.000.000 (Sari
Roti, 2017)

15. Typology of
Entrepreneurship

16. - Social Entrepreneur
A social entrepreneurs are entrepreneurs that make a significant and diverse changes in the
local society for the better, the social entrepreneurs taking a more creative business model to
solve the current persistent and complex problem in the society. Social entrepreneurs could
further be divided into three more category. First, Social Bricoleurs, this type of social
entrepreneur focuses on more addressing and identifying insignificant local social needs.
Secondly, Social Constructionists typically make use of opportunities and market failures to
create a better opportunity to underserved clients, allowing an introduction of reforms and
innovations to the broader social system. Lasty, Social Engineers understand systemic problems
inside the existing social structures and solve the problem by introducing revolutionary
change(Zahra et al., 2009). Example of Social Bricoleurs is Helianti Hilman, she is a a business
owner that serves indonesia traditional product that is directly source from the sounding local
called Javara. She also teach the local how to sustain their earning (Top10 Asia, n.d.).

17. Social Entrepreneurs and Public Business
Resulting the Social Entrepreneurs are really suitable for the a social oriented such as social
enterprises, that focuses more on to bringing benefit to the society instead of making profit
(Zahra et al., 2009). Despite, often social entrepreneurs need to use the failure in market such as
social constructionists, it is still result in improving the social system.

18. - Technological Entrepreneur
The next type of entrepreneur is technological entrepreneurs, usually a younger entrepreneurs
tend to focuses more on to encouraging teamwork in the company, and often the products are a
spin-off universities project or research centers. Allowing the product often to focuses on to the
latest trend in technology and services (Puga & García, 2010). Example of successful technical
entrepreneurs is Cyrus Farudi, the co founder of Capsule, a platform for group sharing and
event planning, to help user to organize the the planning, attending, organizing a trip, party or
event (ideamensch, 2012). He leads the company web and mobile application and the business
strategy (Ideamensch , 2012).

19. Technological Entrepreneurs and Micro Business
This making the technological entrepreneurs to be more suitable for Micro Business, which
usually are a start-up company that need a lot of new ideas for the business to stand out and
survive in the market. Adding new ideas and encouraging flexibility allows start up business to
be able to create a more conducive area for the worker to express their ideas.

20. - Corporate Entrepreneurs
Corporate entrepreneurs has a lot of definition, one of the definition by Bulgrman (1983) is the
process of which the organization were to undergo diversification internally, that inquires new
resource combination to lengthen firm’s activity in underdeveloped areas to maximize the
current domains of competence. Based on the definition it can be seen the corporate
entrepreneurs focuses more on improving the already existing condition into better by using
new ideas and resource. One of the most revolutionary example of corporate entrepreneurs is
the creator of GMail, Paul Buchheit, it was released in 2004, it has the biggest storage capability
which 1GB- 500 time microsoft hotmail at the time. Gmail created by Paul Buchheit under
google provided with many resources (MCCRACKEN, 2014).

21. Corporate Entrepreneur and Large Business
Making corporate entrepreneurs to be suitable for large corporation which has the main
objective and role is to expand and improve the current business. The objective between the
corporate and large business by itself is similar, to improve and expand the current business.

22. Similarities and
Differences between
Entrepreneurial
Ventures

23. Similarities and Differences between
Entrepreneurial Ventures
Although there are different entrepreneurial ventures, all of them have the purpose to satisfy
the wants of people. There are unlimited people’s want however, there are limited resources
available. This pushes in specialization in the business. The specialization can be seen in every
venture, for example every venture has specific objective that need to be kept, this to keep the
performance of all the business to be as efficient as possible (Borrington & Stimpson, 2013). This
section of the paper would discuss the similarities and differences between the all the venture.

24. - Size
The most striking difference in size of business is between the Micro and Large business. The difference
between the objective of the two size are almost on the opposite spectrum the large business objective is
sustained while micro business is to survive. Unlike the between the small business and the micro
business both has similar objective which is to survive in the market, however a small business does not
need to survive as much as the micro business with the amount of capitals that small business have.
Granting that there are very dominant difference between all the size, however, all the sizes has one
similar objective which is to grow and expand.
- Type of Business
Continuing to type of business, all the three types of business that is discussed on this paper has the
similarities of all create their own profit without relying on the third party. However, not all the type of
business is focused on creating profit, different from private and public limited, social enterprise is much
more concern about creating a good impact to the society. In the posite, the public and private limited is
concern in obtaining profit especially the public limited, as the business need to sell as much share as
possible.

25. - Ownership of Entrepreneurship
The ownership of enterprise. Out of all the entrepreneurial venture in the category has the most
striking differences between the group. The private limited is run by the private individual,
which in turn results in the business to be profit oriented. While the public business, is owned by
the government thus making the company to not be profit oriented, as the sole existent of the
business is to serve the citizen.

26. Critical: Ownership
Being a business there is always pro and con, this allowing space for business to keep growing.
In this part of presentation would focuses more on critical evaluation on entrepreneurial
venture. First would be sector of business. Being a public business, does not allow the business
owner to have personal gain. This may cause the business runner may not be motivated as the
owner does not have personal goals to strive for. However, being a private business although
allow the business owner to strive for their personal gain, this allow the business runner to only
strive for personal gain and give little thought to the surrounding society.

27. Critical: Type of Business
Being a private corporation, such as the private and public limited to strive for profit while
social enterprise focuses more on to impact on the society. Thus, setting social enterprise to be
different from the other private corporation. Resulting being a social enterprise to not produce
as much profit as others, despite of having a good impacts and image in the public.

28. Critical: Size of Businuess
With 99% of Indonesia business to be in UMKM size making the large corporation to only have a very little presence in
the Indonesia economy. This could lead Indonesia economy to not be developed, as the UMKM business to grow
especially with the difficulty to find finance, that is needed for the business to grow (Bank Indonesia & LPPI, 2015).
Although there program that made to help in financing the business, such as BNI Kredit Usaha Rakyat that allow the
business owner to take loan up to Rp.500 million with a 9% of interest rate (BNI, n.d.).
However, 60-70% of UMKM business is unable to access finance from the provided bank, especially for UMKM business
that live in a small and remote area, that not a lot of bank have ability to reach. The next, is UMKM does not have the
knowledge to manage the business in the modern way especially in term of finance management. Such as many UMKM
business are still unable to differentiate between the personal and business finance, often the business mix both account
together therefore creating problem in management of finance. In addition, often the legality of a UMKM business is still
ambiguous where business is often running without permit, suitable location, transaction cost, proper infrastructure and
funding (Bank Indonesia & LPPI, 2015).

29. Based on the chart above it can be seen that the micro
business that the Micro business has grow to a larger in
portion in the 2011-2012. This is can be positive as more
people are starting to be entrepreneurs this could push
innovation which would result in contribution to the
economy. However, there is a decrease of large corporation
this may lead to a negative impact to the economy. As, large
business are more productive in addition one economy could
be linked to the amount of large corporation operate in the
country (EURACTIV.com, 2012). Therefore with the decrease
show that economy is slowing down. Another evidence of the
economy to slow down can be seen in the slight decrease of
medium enterprise, with the amount of the small business in
to last year the medium should have increase. However,
instead it has decrease it can hypothesized that either the
business stay as small or the business has closed down.