Created By: Stefanie Wijaya (Jakarta Smart City Team)

1. Lecture 2:
Entrepreneurial
Ventures
Cre By: Ste e W j a
( Jakarta Smart City Team )

2. Learning Objectives:
Know and understand the different types of
entrepreneurial ventures
Able to point out the similarities and differences
between entrepreneurial ventures
Understand the different typologies of
entrepreneurship and its relation to the
entrepreneurial ventures
Able to critically evaluate the scope, development
and growth of entrepreneurial ventures
2

3. 3 types of
ENTREPRENEURIAL
VENTURES

4. 4
● Entrepreneurial Ventures based on Business Structure
Soc E te r
Ex: Wecare.id & Du’Anyam (DBS
Bank Ltd, 2015)
Pri Lim En e p
Ex: Facebook (Investing Answers,
n.d.)
Pub L mi En p i
Ex: PT. Bank Central Asia Tbk (PT
Bursa Efek Indonesia, n.d.)

5. 5
Private Limited
Enterprise
● Has separate legal identity and
bank account from the owners
(Borrington and Stimpson, 2013).
● Has relatively few shareholders
and directors are usually the main
ones (Bradley, n.d.).
● Cannot sell shares publicly in the
market (Bradley, n.d.).
● Aim to maximize profit and
provide transparency during
financial reporting (Bradley, n.d.).
● Owned by private individuals
(Borrington and Stimpson, 2013).
● Has separate legal identity and bank
account from owners (Borrington
and Stimpson, 2013).
● Has limited liability (Borrington and
Stimpson, 2013).
● Has thousand of shareholders and
conduct Annual General Meeting
(AGM) for decision making
(Borrington and Stimpson, 2013).
● Aim to maximize shareholders and
company value (Kokemuller, n.d.).
● Aims to balance activities that
provide financial benefits and
social goals (BC Centre for
Social Enterprise, n.d.).
● Tends to prioritize social
mission, leaving income
generation as supporting role
(BC Centre for Social
Enterprise, n.d.).
● Aims to earn revenue to
maximize benefits to the
community (BC Centre for
Social Enterprise, n.d.).
Public Limited
Enterprise
Social
Enterprise

6. 6
● Entrepreneurial Ventures based on Size
Micro
Enterprise
Ex: Bakso
Jowo (UMKM Kota Jogja,
n.d.)
Small
Enterprise
Ex: Warung Cak Hendrick 88
(Muhammad, 2018)
Medium
Enterprise
Ex: PT. Anugerah Kagum Karya
Utama Tbk (PT. Anugerah Kagum
Karya Utama Tbk Annual Report,
2017, p.3)
Large
Enterprise
Ex: PT. Ace Hardware
Indonesia Tbk (PT Ace
Hardware Indonesia Tbk,
2016, p.2)

7. MICRO
Characteristics
Informal businesses (not registered) and do not pay
tax.
Do not have formal organisational structure or
accounting system.
(Tambunan, 2011, p.23)
Objective and Role
To provide immediate and big scale job opportunities
with low capital investment.
To generate a more balanced dispersal of industries
over the country.
(Sinha, n.d.)
7
SMALL
Characteristics
Majority are formal businesses and have to pay tax.
Majority do not have a formal organisational
structure or bookkeeping system.
(Tambunan, 2011, p.23-24)
Objective and Role
To survive in the market and search for profits.
(Tambunan, 2011, p.23-24)

8. 8
MEDIUM
Characteristics
Formal businesses (registered) and have to
pay tax.
Often recruit professional managers and
have a lot of division of labour.
Objective and Role
Profit maximization, as well as operations
and market share expansion.
(Tambunan, 2011, p.23-24)
LARGE
Characteristics
Net assets and sales generated are greater
than medium-sized firms.
Have more than 100 employees.
(Merina, 2016)
Objective and Role
To control market share among similar
industries or competitors.
(Money Matters, n.d.)

9. 9
● Entrepreneurial Ventures based on Ownership
Pub C r o t o Pri Cor ti

10. 10
Public Corporation
Based on Borrington and Stimpson (2013):
● Owned by government but there is no
direct government intervention.
● Board of Directors are responsible for
the running of the business.
● Able to sell their shares publicly in the
market.
● Aim to help the government in
boosting economic growth of the
country (Singh, n.d.)
Ex: PT. Pertamina & PT. Telekomunikasi Indonesia
(Zona Referensi, 2018)
Private Corporation
Based on Moynihan and Titley (2012, p.191):
● Owned by private individuals and has separate
legal unit and bank accounts from owners.
● All purchases and loans can be made under the
name of the company.
● Aim to fulfill consumers demands for profit
maximization.
Ex. PT Indo Right Pack (owned by Lioe Benny Santoso Wijaya)
(Indo Right Pack, n.d.)

11. Similarities & Differences between
Entrepreneurial Ventures based on . .
Private and Public Limited Enterprise are
being treated as a separate legal unit
from its owners.
Micro and Small Businesses both aim
for survival in the market.
Both Public and Private Corporations
strive to generate profit.
11
Private Limited is not allowed to sell their
shares publicly in the market, while
Public Limited can,
Both Private and Public Limited put profit
maximization as their main goal, while
Social Enterprise main goal is to serve
the community.
Medium businesses aim for expansion,
while large businesses no longer worry
about their ability to survive, but aim to
have a major control over the market
share.
Public Corporations tend to use their
revenue for building and making
public things that will benefit the
whole society.
Bus s S uc Siz Ow e s
S
D
Source: (Borrington and Stimpson, 2013)

12. 12
Typologies of Entrepreneurship
Corporate Entrepreneurship
Focused on renewing companies through
initiatives which are based from
innovation (Corbett et al., 2013; Quoted by
Sakhdari, 2016, p.5).
Aims to create competitive advantage for
firms to reach its goals (Enginoglu and
Arikan, 2016, p.1).
Often characterized by formation of new
companies/business within existing firms;
strategic rebirth of existing firms;
development of new ideas at different
levels of organisation (Paunovic, 2012).
Ex: 3M (invention of Post-it notes) (Post-it,
n.d.)
Technology Entrepreneurship
Aims to create new ventures in firm that involves the use
of scientific or technology advances as the core element
of the entrepreneurial opportunity (Bailetti, 2012, p.10).
Characterized by project-oriented (collaborative productive
decisions), instead of a single person making decisions,
and its interdependence with the change in technology
and scientific knowledge (Bailetti, 2012, p.10).
Ex: Xiaomi (software and hardware company) (Ahmad,
2014)
Social Entrepreneurship
Focused on increasing social impacts and
values or solving social problems through
entrepreneurial principles and operations.
Characterized by using social mission as their
main driving force (Braunerhjelm and Hamilton,
2012, p.6).
Ex: Nazava Water Filters (give access to safe
and affordable drinking water for everyone)
(Nazava, n.d.)

13. 13
Relation of Typologies to
the Entrepreneurial
Ventures

14. “
14
Corporate Entrepreneurship x Large
Enterprise
It will be very difficult for businesses to survive in the contemporary
business environment, especially for large enterprise. It requires
entrepreneurial competencies such as opportunity-seeking,
risk-taking, responsive, and initiative. Therefore, it is suggested that
large firms should adopt corporate entrepreneurship which
encourages the emergence of new elements into the existing
business frame for growth, such as the development of new products,
procedures, and types of organisations, or investments in external or
internal activities and businesses (Basso and Alain, 2010).

15. Technology Entrepreneurship x Small and
Medium Enterprise (SME)
According to Matejun (2016), the use of technological potential best
suits small and medium enterprises (SMEs) as it triggers the level of
innovativeness to produce creative concepts, as well as expanding
their ability in studying and anticipating the changes in the market
trends, which allows them to regularly have market advantages.
However, SMEs may face challenges such as shortage in financial
resources, but once they received the support, the benefits of using
technology entrepreneurship as their basis of innovation would
outweigh the costs.
15

16. 16
Social Entrepreneurship x Social
Enterprise
Renz and Herman (2010) stated that social entrepreneurship has
grown over time, where more and more companies are engaged in
partnerships with social entrepreneurs, in which they are aligned with
their corporate missions and values to pursue business opportunities
that may yield social and economic values or to provide subsidies for
social activities. Due to the similar activities and objectives in both
social enterprise and social entrepreneurship where they address
social problems, meet social needs, and serve social missions, both
are suggested to be compatible with each other (Chell, 2007).

17. Critical Evaluation on
SCOPE, DEVELOPMENT & GROWTH of
ENTREPRENEURIAL VENTURES
17

18. 18
Unit Usaha 2012 2013 2014 2015
(Unit) Jumlah % Jumlah % Jumlah % Jumlah %
UMKM 55.206.444 99,99 56.534.592 99,99 57.895.721 99,99 59.262.772 99,99
Usaha Mikro 54.559.969 98,82 55.856.176 98,79 57.189.393 98,77 58.521.987 98,74
Usaha Kecil 602.195 1,09 629.418 1,11 654.222 1,13 681.522 1,15
Usaha
Menengah
44.280 0,08 48.997 0,09 52.106 0,09 59.263 0,10
Usaha Besar 4.952 0,01 4.968 0,01 5.066 0,01 4.987 0,01
Growth of MSMEs and Large Business in Indonesia (2012-2017)
Source: (Kementerian Koperasi dan Usaha Kecil dan Menengah, n.d.)

19. 19
Unit Usaha 2016 2017 Perkembangan Tahun 2012-2017
(Unit) Jumlah % Jumlah % Jumlah %
UMKM 61.651.177 99,99 62.922.617 99,99 7.716.172 13,98
Usaha Mikro 60.863.578 98,71 62.106.900 98,70 7.546.931 13,83
Usaha Kecil 731.047 1,19 757.090 1,20 154.895 25,72
Usaha
Menengah
56.551 0,09 58.627 0,09 14.347 32,40
Usaha Besar 5.370 0,01 5.460 0,01 508 10,26
Source: (Kementerian Koperasi dan Usaha Kecil dan Menengah, n.d.)

20. As seen from the table, 99,99% of the businesses in Indonesia are categorized as SMEs, only 0.01% belongs
large businesses. Thus, it would be very difficult for Indonesia’s economy to grow since SMEs often fail to
fulfill customer demands and satisfaction due to the lack of capital to finance for the costs of production
(Setyadi, 2017). The government stated that around 60-70% of all MSMEs do not have the access to finance
through banks (Lembaga Pengembangan Perbankan Indonesia dan Bank Indonesia, 2015).
Scope
Some state-owned banks boost credit loans for MSMEs, such as Bank
Rakyat Indonesia (BRI). However, not all banks are able to give such
high offer up to 20% and above for credit loans for MSMEs. Until now,
Bank Central Asia (BCA) could only reach 12-13% (Kartika, 2018).

21. 21
Growth & Development (pt. 1)
The constant rise in the percentage of SMEs indicated that more
entrepreneurs are born, which means that the contribution to the
Indonesia’s economy would also rise. There is an increase of
approximately 7.7 million of new SMEs introduced in Indonesia
within 5 years. However, there is only a total of 508 medium-sized
firms growing into large-sized firms. In comparison to the new 7.7
million firms, 508 is considered as a very small number.
Considering the difference in the growth ratio and the capability
of medium enterprises to expand, the increase in number of large
firms should have been greater.

22. 22
According to Sahban (2015), some barriers to growth of MSMEs
into large businesses might include low expertise of the
workforce, lack of knowledge about the global business
strategies and the market, and that the technology in Indonesia is
not yet well-developed for the global market. In addition to this,
the inability to hire workers that meet up to the company’s
standards and subcontractors with good credit worth would
result in difficulties to incorporate the further use of modern
technologies for further developments. Firms may not be ready
for a change due to poor organisational structures and overall
operations of the business (Shah et al., 2017).
Growth & Development (pt. 2)

23. 23
End of Slide.
Any questions?
You can find me at:
● stefaniewijayaa@gmail.com

24. References
24
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25. 25
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