A Detailed Handbook on

Legal System, key Legislations along with Business

Guidance and implications of law on Businesses

Address:
8-G Mushtaq A Gurmani Road, Gulberg,
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 Summary & Preface
This intuitive Handbook introduces an explanation of the legal

system along with a brief yet concise overview of law sources. It also

provides cutting edge analysis of role of government in law-making

and . This handbook also introduces the relationship between different

types of ventures and entrepreneurial firms with an extensive focus on

the various forms of business structures’ complexities. It focuses on the

analysis of relationship in small and entrepreneurial firms. By using

primary and secondary data through research it provides a critical

analysis of the rapidly-growing field of entrepreneurship’s complexities.

 Key Words: Small Businesses, Entrepreneurial Ventures, Organizational

functions, Business Structures, Advice & Market Intelligence

Table of Contents
LO1. Demonstration of basic legal structure

 A brief explanation of different sources of law

 Explanation of the role of government in law-making and application of statutory and
common law in justice courts

 Evaluate critical analysis of the legal system’s effectiveness with regard to recent reforms and
developments

LO2. Explanation of law’s potential impact on businesses

 Illustration of company, employment and contract law’s impact on

business
 “Differentiate between legislation, regulations and standards to analyze potential impacts
upon business”

LO1 & LO2

 D1. “Provide a coherent and critical evaluation of the legal system and law, with evidence
drawn from a range of different relevant examples to support judgements”
Illustration of various types of entrepreneurial ventures

Depending upon the risk taking abilities and finances different individuals and different
organizations set up various kinds of businesses. Entrepreneurial alludes as conveying the
venture in which different individual intends to begin or foster remarkable qualities in items or
administrations. it will help to improve benefits and income through organizations will achieve
their objectives and make further speculation arrangements. These kinds of people are known as
business visionaries (Entrepreneurs) and association is characterized as Entrepreneurial.
Ventures that may be considered entrepreneurial are varying based on the size, nature and types
business. These are as follow

1. Small Business Entrepreneurial Venture

There is an impressive figure about small business venture. Small Business is owned and
established by an individual. A maximum number of individuals is enrolled as the functioning
workers in these organizations. The point of this sort of private venture firm isn't excessively
high. Fundamentals and essential goals of Small Business are to concentrate on the growth and
establishment of the business rather than on making higher profits and benefits. It has less annual
revenue than other standard business. (Zimmer, 2016).

Examples of small business Entrepreneurial Ventures are local restaurants (Butt Karahi), Dry
Cleaners, Grocery Stores, travel agencies, hairdressers, plumbers, electricians and household
business firms. It has been reported by the International Labor Organization that about 39%
women in Pakistan are associated with small business in varying forms and nature. (Sharafizad
and Standing, 2017). One of the famous local examples of Small Business Entrepreneurial
Ventures is Imtiaz Super Stores

2. Scalable start-up entrepreneurial venture:

The rationale of this kind of undertaking is very similar to the independent venture interest in
the question of acquiring a modest quantity of benefit. Be that as it may, the focal point of
versatile new company is to draw in the financial backers from everywhere the world. Scalable
start-up entrepreneurial venture use to enroll exemplary and keen representatives. This business
venture considered to be versatile because scalable start-up venture follows the already present
effective practices. This model looks for a high development of the business by rapidly adapting
to changing economic condition and adapt itself to the repeatable plan of action that will help in
the transformation of the business venture. (Lerm and Kurz, 2012).

It includes Twitter, Instagram, Facebook, Snapchat, Online Stores like Amazon and Gloria jeans.
The few famous local examples of Scalable start-up Entrepreneurial Ventures are Khaadi, Gul
Ahmad, Sapphire and Crescent.

3. Large company entrepreneurial venture

Large associations have confined presence arrangements. Most extreme development is

gotten through the contribution of new demanded items and products by analyzing and following
the changing market trends and demands. By critically analyzing the consumer experience and
learning from the customer feedback and by introducing user friendly databases to produce
altogether new merchandise to be conveyed to new clients in the recently settled commercial
center. Such possible enterprises use to play out this by either getting inventive organizations or
trying to build disrupting made merchandise in the inside. Snidely, extraordinary business firm
measurement and foundation assemble scattered improvement astoundingly convoluted to carry
out. (Berger, 2015). These highly trained business visionaries know how to sustain the
innovation to further the development. These sorts of ventures mostly established by the large
firms to meet the demand of the market and add other services in their enterprises. It includes
Google, Microsoft, Hawaii, and Samsung. A very famous example of large company
entrepreneurial venture is Haier.

4. Social entrepreneurial venture

Social business visionaries are trailblazers who use to project a focus on delivering labor and
products in order to break social needs and inconvenience. Yet, not at all like scalable new
companies ventures a definitive target of this sort of adventure is to shape the earth an amazing
habitat, not to get market dissemination or to render flourishing for the makers. Those endeavors
can be for bringing in or in some cases not identified with cash. In a solitary word, it is very
confounded Social entrepreneurial ventures unlike other traditional business entities focuses
mainly on the welfare of the society as a whole rather not strive to make higher profitability. It
has been observed all the major Public and Private Businesses entities has been investing for
championing the cause of social welfare for the marginalized and denied communities. (Vismera,
2016). Example: Akhuwat (microfinance organization).

Explanation of how entrepreneurial ventures are related to the entrepreneurship’s

typology

Enterprising Ventures is based on giving notice organizations to early and mid-put

together associations. We also work with lamented associations in pulling together the game plan
or possibly discovering an exit. Work of innovative ventures changes depending upon the period
of the association. Generally, take on a working notice load up position with starting time
associations helping with procedure headway, execution plans and industry express frameworks
organization. (Syed, 2010)

A brief overview of comparison between entrepreneurial ventures. (Burns, 2021).

Factors Small Business Large Business Scalable Social

Venture Venture Entrepreneurial Entrepreneurship
Venture Venture
Vison and Don’t have Aim at Works for It aims at uplifting
Mission clear goal and providing sustaining in the social cause and
objectives, innovation and market by strive for a better
works for lesser endeavor for innovation and world.
gains higher strategic
profitability marketing
Number of < 50 Varies from >1000 Varies from
employees organization to organization to
organization organization
Risk Lower risk Higher risk Medium Size Not too much Risk
Risk mainly due
to high sales
Structure No Structure, Corporation or Complex Board of trustees
 being run by partnership Organizational
sole owner Structure,
Public/ Private
Limited

Critical analysis of entrepreneurship in Public Sector and Corporate Sector

An organization which is a fundamental part of the economy and its main objective is to
work for the profitability, expansion and growth of the business, this is called a Corporate Sector
Entrepreneurship. It includes different types of business-like Sole Proprietor, Partnership,
Limited Companies. These corporate sectors are not government’s possession and not owned by
the government respectively. Also, the owner of the business is the sole responsible of
profit/loss and any risks associated with the corporation. While an organization which is owned
by the government directly or indirectly and offers government-oriented services. Public Sector
Business are obtainable in the stock market. Public Sector Entrepreneurship process can be
elaborated as “that results in innovative activities such as the development of new and existing
services, technologies, administrative techniques, and new improved strategies, risk taking and
proactivity” (Mintzberg, 1985).

Business visionaries have different mindset depends upon the business structure of an
organization. It is proven fact that Business visionaries of Public and Private Organizations have
different approaches regarding time direction, abilities, perspectives, way to cope with dangers
and enjoying success. (Surbhi, 2015).

An Extensive Exploration of various kinds of business structures’ complexities &

correlation to various organizational functions.

Businesses have become challenging due to an unrelenting global change in rules and
guidelines and laws, finance-related issues, progression of innovation, issues related to
infrastructure, gifted labor’s accessibility, top directors’ absences, and many more.

These complexities vary based on different business structures; they are as follow
 a. Public Sector Organization’s Complexities

Public firms need to confront greater intricacy in contrast with different sorts of business. one of
the greatest intricacies is to fulfill the partner in open area associations. Fulfilling client request is
a major issue today in light of the fact that the interest for the buyer is changing every now and
again on account of online media and systems administration locales. A lot more issues need to
look by open area associations. (Alexander, 2021)

b. Private Sector Organization’s Complexities

Private Sector Business entities has to look after for everything on their own. Since private
organizations’ main aim is to make profits so its success and failure all depends upon the
commitment and work of its employees. The greatest complexity in Private Organizations is to
manage its finances. These organizations have to comply with standards and rule set by the
autonomous financial bodies, so government undeniable interventions and cumbersome
guidelines create hindrance for Private Sector. And government forced such roles and set of
criteria by Public Authorities. One cannot except much enhancement in these business entities.
Other than countless government’s superfluous methods, accessibility of professional and
appropriate management has been the major concern of private sector organizations. (Easton,
2015)

c. Social Entrepreneurship’s Complexities

Since Social Entrepreneurial Organizations aim at providing social welfare and the idea of their
inception is social purpose instead of generating high profits. As Voluntary organizations are being
run by trustees, so capable and highly professional board of trustees are mandatory for
Organization’s growth. These organizations have got some inherent complexities like proper
documentation, fundraising, maintaining job satisfaction of lower paid employees, ensuring
committed volunteers and risk management. (Neumann, 2020)
Interpretation and assessment of pertinent Data and relevant Statistics to analyze Small
and Micro Business’ impact on Economy

SMEs by nature have employees fewer than 250, Pakistan has nearly 2,1 million SMEs
which make 90% of overall businesses in Pakistan. SMEs contribute a huge chunk of nearly 40%
to GDP by employing an aggregate of 80% non-agricultural labor force.

The definition of Micro Business is any business with employees between 0-10. Pakistan has
nearly 2 million micro businesses making 78% of total businesses. SMEs’ combined turnover is
nearly $1.2 trillion, making approximately 35% of all private sector turnover in the Pakistan. It
has been reported that most of the business in Pakistan have employees fewer than 5, making
32% of total business and an aggregate of 15% turnover. (Alwrafi, 2019)

Impact of Micro & Small Business

 i. Having a smaller number of employees in Micro & Small Businesses limits employment
opportunities
ii. Small Businesses revenue has an immense impact and significant influence on th
economy as compared to Medium Enterprises.
iii. Micro and Small businesses are advancing rapidly, hence providing greater financial
opportunities to youth specifically women
iv. Since Micro & Small businesses make 90% of the total business, hinting a tight
competition in the industry

Small businesses and Entrepreneurial Ventures’ importance to Social Economy’s growth

Significance of local business/ Small Business to local area is genuinely built in buying and
selling out with inhabitants and neighbors. The little firms has significance in rustic regions and
this leverage is found in the monetary advantages of shopping locally. (Rehman and Anwar,
2021)

 Employing Local Workers

Since Small Businesses are set up locally so they tend to add to local economies in which
they are set up, by furthering development and advancing progress in the local area.
Furthermore, these private entities crate financial opportunities for local inhabitants who can not
get employment opportunity at big firms for any reasons.

 Ability to respond to changing economic climate

Since small businesses are customer-oriented they possess the ability of responding and
adapting swiftly to changing economic climate. Small businesses can afloat in trying times
because of various reasons such as customer loyalty to local business and less operational cost.

 Assisting Local Governments financially by taxes

When customers disparage small business, these purchasers are fundamentally paying back
to the local community in the form of cash. An expanding and growing business would create
employment and financial opportunities to a large extent, which obviously means that specific
business will pay taxes in greater amount
Evaluation of what differences SMEs and Large Businesses make to the economy by using
pertinent Data and applicable Statistics

Fig 3.5 (Growth in the real GDP by private Sector of Pakistan)

It tends to be broke down that SME business adds to the development of the economy since
they create greater work rates when contrasted with large organizations as the report shows
SMEs in Pakistan adds around to 90% of total work force labor and just 10% depend on large
organizations. A growing pace of Employment in SMEs basically creates more competition and
helps in the swift availability of various products and creates different channels to assist
purchaser in best possible ways. It has been observed that due to a growing trend in SMEs, Govt
of Pakistan readily puts its trust in SMEs yet Large Businesses have extraordinary significance as
they have been engaged in production of large number of quantities simultaneously. As it is
evident that Large Organizations have greater number of employees than SMEs so these firms
pay much higher than SMEs. (Rehman and Anwar, 2021)

Critical Analysis of Small businesses’ impact on economy at various levels ranging from
Local to Regional and from National to International.

Government of Pakistan has been endeavoring to defense the small businesses for a better
development and progress of the country. Our SME Competitiveness Outlook, released recently
on budget session, plans to provide yearly guidance on where best to center attempts to help
countries' SME divisions. Vocations are the crucial channel. SMEs address very nearly 78% of
overall work. Large Business by and large are more beneficial than micro and small businesses.
Low productivity hence implies lower wages and more deplorable working conditions. There is a
lot of room to improve. Further developing SME productivity changes over into more and better-
paying occupations. Private companies affect the different level of the economy. SMEs are
transforming into a more useful rate and giving great paying work. SMEs are currently ready to
work for worldwide also. They are bringing in and trading the item from out of their country.
The worldwide financial plan is raising high with the assistance of further developing SME's
efficiency. The opposition of SMEs is expanding which implies they work for their wide turn of
events. (Neumann, 2020)
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