This slide discusses what makes an entrepreneurial venture different from regular businesses, and also highlights the components aspiring entrepreneurs need to pursue.

1. Entrepreneurial
Venture
and
its Components
IRIOBE OFUNRE
ofunre.iriobe@gmail.com

2. Introduction
There is more emphasis on
entrepreneurship and
being an entrepreneur.

3. Introduction Cont’d
Entrepreneurs
•Contribute to economic development,
•Have a creative problem solving skills
This innovative way of doing things, makes their
operations different from a regular small business

4. Entrepreneurship is the...
• engine room of economic growth
• driving force that aides growth and development
as well as the restructuring of wealth and
economic resources.
• Catalyst for socio-economic transformation
Economic Importance of Entrepreneurship

5. • Employment generation
• Improvement on National income
• Decentralization economic wealth
• Reducing unrest and social tension amongst youth
• Innovations in enterprises
• Improvement in living standards
• Economic independence
Below are some of the economic importance of entrepreneurship

6. These are forces and pressures in the marketplace which exert influence on
entrepreneurship and they can be positive or negative.
• Social and societal factors
• cultural attitude towards risk and failure,
• access to education,
• the level of social fragmentation,
• the flow of information etc.
• in some societies, women are not allowed to engage in any form of
business activity or gain access to education
Factors that affect entrepreneurship

7. • Technology factors
• advanced technology
• Research funding
• Collaboration between industry and universities
• Economic factors
• tax rates,
• interest rates,
• income level,
• standard of living and purchasing powers of the market
Factors that affect entrepreneurship

8. • Political/regulatory factors
• These factors have impact on how companies are established,
• the requirement for registration,
• and other legal obligations.
• Other factors considered by H. Kantis (Ed.) in his work on Developing
Entrepreneurship, includes
• Personal factors
• This refers to socio-demographic profile of the entrepreneur—which are
influenced by his or her family, educational and work environments—
and his or her entrepreneurial skills (e.g., propensity to assume risk,
tolerance for hard work, managerial capacities, and creativity);
Factors that affect entrepreneurship

9. Factors that affect entrepreneurship
Networks
These are the assistance provided through personal social
networks
(i.e., friends and family), institutional networks (i.e., business
associations, institutions of higher learning and/or
development agencies) and commercial networks (i.e.,
suppliers and customers);

10. So is there a Difference between
Regular Business
and
EntrepreneurialVenture?

11. Different scholars have varying opinion regarding the
differences however, risk and innovation is a common
denominator that differentiates entrepreneurial
ventures from small businesses

12. • Amount required
• Speed of Wealth creation
Entrepreneurial ventures create substantial wealth
more than regular businesses, and they create it
faster too.
‘Whatsapp’ messaging service application for
instance, started with $8 million and was sold for
over for $19 billion in 2014.
So what makes the difference?

13. • Risk
• Innovation
The risk of an entrepreneurial venture is usually
high; this is partly because they go out of their way
to make products that did not exist in the market as
at that time.
For instance, Richard Branson attempted
establishing a commercial space shuttle that can
take people to space and back.
So what makes the difference?

14. What is an Entrepreneurial Venture?
Entrepreneurial venture can be defined as
an organisation that places innovation and
opportunism at its heart in order to
produce economic or social value.

15. Please NOTE ....
•For this discussion, we are not interested in
the size or structure of the organisation, but
those characteristics that make
entrepreneurial ventures unique.

16. Small and Medium
Business
Big Business

17. The Components of
Entrepreneurial Ventures
• Entrepreneurs are innovation driven, and are always
ready to challenge conventional business knowledge.
• Nevertheless, entrepreneurial ventures are often highly
correlated with entrepreneurial characteristics.

18. They have the ability to identify
And create business from
the opportunities
offered by change, and they
benefit
from the new openings.

19. INTERNAL LOCUS OF
CONTROL
They believe that the
Future is within
Their control,
and that they
are responsible
for their own success.

20. PRODUCT DRIVEN
Aside meeting customer needs,
entrepreneurial ventures are highly
motivated in business because of the
uniqueness of their products.

21. OPPORTUNITY-DRIVEN
They don’t continue on
the same line of business
for a long time, they
always seek ways to
expand their business
scope.
Google started as a search engine
company, but today, they own Youtube,
Android OS, web browser etc

22. PROACTIVE
Small businesses often times
react to market changes where
as entrepreneurial ventures
learn to follow the trend, and
deal with changes or
difficulties as it happens or
before it happens.
Nike, though a sports shoe company, it has
anticipated the need for sports shoes and technology
to work together. The company introduced Nike +
iPod sports kit to measure the distance and speed of a
run or a walk.

23. INNOVATION
FOCUSED
What makes an
entrepreneurial
firm is not the
ability to start a
business, but the
strength of its
innovativeness
Blackberry phone and its messaging
service changed how we interact and chat
on the internet.

24. Calculated Risk-Taker
Entrepreneurs are known to be risk takers.
Risk is part of every business however, the
level of risk taking differs from business to
business, and from industry to industry. In
the case of entrepreneurial firms, what
makes their ‘risks’ noticeable is the fact that
they have new ways of doing things, or they
are introducing new products.
A chance of exposure to loss or injury
that might be undertaken after its
advantages and disadvantages have
been carefully

25. The value of products and
services today is based more
and more on creativity – the
innovative ways that they take
advantage of new material,
technologies, and processes.
Value Creation
The performance of actions
that increase the worth of
goods, services or even a
business.
http://www.businessdictionary.com/definition/value-creation.html#ixzz3rAVyEN3b

26. QUESTIONS
&
ANSWERS