Higher National Certificate in Business

Student Name/ID Number: Sehan Kesara Amarakeerthi (CB008618)

Unit Number and Title: Unit no – 09 , Title – Entrepreneurship and Small Business Management

Academic Year: 2020

Unit Assessor: Maheema Rajapakse

Assignment Title: Entrepreneurial Ventures- Part 1
Issue Date: 30 April 2020

Submission Date:
25 June 2020 before 4pm
Submitted Date: 25 June
Internal Verifier Name: Shamri Afurdeen
Word count : 2455
Acknowledgement

I would like to express my special thanks of gratitude to my teacher “Miss.Maheema

Rajapakshe” for their able guidance and support in completing my project.

Also I would like to thanks my parents to their suggestions and guidance has been helpful in
various phases in completion of the project.

Last but not the least I would like to thanks my classmates who have helped me a lot.
Executive summary
Organizations are the key factor for a growth economy, most of the developed countries are
focused on promoting business organizations. From this report we can get an overall idea about
an organization, types of organizations and their advantages as well as the disadvantages.

Most of the developed countries own the world biggest organizations, which make a great impact
for their GDP, this report have been proved it by selecting 3 world largest organizations. Vision,
mission, objectives and the business functions can carry an organization to the success, we can
get a clear idea about that from the below mentioned organizations.

Organizational structure is the main arrangement of an organization, to do the business functions

efficiently, a proper structure is required, from the below report we can get a clear idea about
organizational structures and the different between organizational structures of mentioned 3
companies.

Stakeholders play the key role when carrying an organization to the success, we can get an idea
about stakeholders of different organizations and the way how they impact on it from the below
explanations.
Contents
Higher National Certificate in Business...................................................................................................1
Acknowledgement.......................................................................................................................................2
Executive summary.....................................................................................................................................3
Entrepreneurship.........................................................................................................................................5
Enterprise................................................................................................................................................5
Entrepreneur............................................................................................................................................5
Types of entrepreneurial ventures............................................................................................................6
Serial entrepreneur...............................................................................................................................6
Intrapreneur.........................................................................................................................................6
Owner manager...................................................................................................................................6
Similarities of entrepreneurial ventures...................................................................................................6
Differences of entrepreneurial ventures...................................................................................................7
Typology of entrepreneurs.......................................................................................................................8
Lifestyle entrepreneurs.......................................................................................................................9
Social entrepreneurship.......................................................................................................................9
Growth entrepreneur............................................................................................................................9
Survival entrepreneur/Survivalists.......................................................................................................9
Revolutionary entrepreneurs................................................................................................................9
Economy...................................................................................................................................................10
Economic growth...................................................................................................................................10
Current economic situation in Sri Lanka...............................................................................................10
SMEs in Sri Lanka.................................................................................................................................10
Advantages of SMEs.........................................................................................................................11
Large scale enterprises...........................................................................................................................11
Social economy.........................................................................................................................................11
 Entrepreneurship
Entrepreneurship can be known as a process of creating a new enterprise and bearing any of its
risks, with the motive of making the profit (Business Jargons, 2016). Entrepreneurship is
important for the growth of economy.

Enterprise
A profit business or a company also known as an enterprise, but it is most often associated with
entrepreneurial ventures. Mostly an enterprise is formed by an entrepreneur (Shopify, 2019).

For example,

 Coca-Cola
 Apple
 Amazon
 Tesla

Entrepreneur
Simply an entrepreneur is a risk taker who creates new businesses with new ideas and
innovations and enjoying most of the rewards (Investopedia, 2019).

For example,

 Steve jobs
 Jeff Bezos
 Elon musk
 Types of entrepreneurial ventures

Serial entrepreneur
An entrepreneur who continuously comes up with new ideas, innovations and starts new
businesses is known as a serial entrepreneur. These types of entrepreneurs doesn’t focus on one
business, after they create the business they give the responsibility to someone else and move on
to a new idea (serial entrepreneur, 2019).

Elon Musk is an example for a serial entrepreneur, he has formed many businesses such as zip2
corporation, PayPal, SpaceX, solar city etc. (Biography, 2018).

Intrapreneur
Intrapreneurship is a system that allows employees to act like entrepreneurs. Intrapreneurs are
self-motivated and innovative people who work for an organization for a salary. They have a less
risk than entrepreneurs because the losses from failures are absorbed by the organization
(Investopedia, 2019).

Owner manager
Owner manager is a person who own and manage a business, most of the small businesses are
managed by owner managers, this help to reduce the wages (Lexico Dictionaries | English, n.d.).
Similarities of entrepreneurial ventures

1. Innovative- Entrepreneur can be known as a creator of new organization with new

ideas. So commonly they are innovative and creative. This idea is highlighted under the
definition of entrepreneurs.
2. Risk takers- with the formation of new idea each and every entrepreneur has to bear
a risk as explained under the entrepreneur definition.
3. Self-motivated- before the success each and every entrepreneur has failures in their
life, without self-motivating none of them will be able to achieve their targets.
4. Help to the economy of the country- entrepreneurs are a main reason to the
growth of economy, it can be proved by considering the economy of U.S, most of the
entrepreneurs are from U.S and they has a strong economy in their country. This is the
reason why governments give many opportunities to entrepreneurs to make their
businesses success.
5. Open minded
Differences of entrepreneurial ventures
Table 1 Differences of entrepreneurial ventures
Serial entrepreneurs
Motive is to start new
businesses.
Risk is high, loss should be
taken by himself
Profits are reinvested in the
business, or used for new
innovations.
Most of the serial
entrepreneurs are famous and
well known by the society.
Intrapreneur
Motive is to be an
entrepreneur inside an
organization
Risk is low compared to
others, and losses due to
failures are absorbed by the
organization.
Salary is used for personal
satisfaction.
Intrapreneurs are highlighted
inside the organization.
Owner manager
Motive is to grow his own
business by being self-
employed.
They also have a high risk and
losses should be taken by
them.
Profits are reinvested in
business with the motive of
growing it.
Owner manager plays the
major role inside the business.
Typology of entrepreneurs

Lifestyle entrepreneurs
Lifestyle entrepreneur is an individual who take a risk and create a business with the purpose of
altering their personal lifestyle, not with a motive of increasing profits (lifestyle entrepreneurs,
2019).

Social entrepreneurship
Doing businesses with the motive of solve community based problems, or with the motive of
social welfare is known as social entrepreneurship, an entrepreneur who follow his concept can
be known as a social entrepreneur (Investopedia , 2019).

For example Otara Del is a famous social entrepreneur in Sri Lanka, she carried a brand named
Embark by the side with Odel with a motive of rescuing and rehabilitating street dogs (Otara
Gunewardene, n.d.).

Growth entrepreneur
Growth entrepreneurs are motivated by the competitiveness of business. They often take more
risk and make large investments in both capital and time to grow their business, and if the
business get succeeds this risk will come with financial rewards (ExpertHub, 2011).

Survival entrepreneur/Survivalists
Survival entrepreneurs manage business as a mean of economic survival. They manage micro
enterprises to feed themselves and their families. They create a little wealth with their business
operations. Survival entrepreneurs can be found in South Africa commonly (ExpertHub, 2011).

Revolutionary entrepreneurs
Revolutionary entrepreneurs create new businesses to change the trends of world. They mainly
focus on new innovations by taking a big risk than other entrepreneurs. Most of the world
famous entrepreneurs such as Steve Jobs, Bill Gates, Elon Musk etc. are revolutionary
entrepreneurs who changed the world (ExpertHub, 2011).
 Economy
A system of organizations and institutions that play a role in the production and distribution of
goods and services in a society can be known as an economy. An economy is largely affected by
political and social factors (what is economy, 2019).

Economic growth
An increase in the production of economic goods and services, compared from one period of
time to another is known as Economic growth. Economic growth can be developed by increasing
capital goods, labor force, technology, and human capital. Normally economic growth is
measured in terms of grass national production (GNP) or gross domestic production (GDP)
(Investopedia, 2019).

Current economic situation in Sri Lanka

Due to the Corona pandemic whole world has faced a big challenge in 2020. In Sri Lanka also
we can expect the economy to slip into recession in 2020 due to this reason. The drop in tourism
and ready-made garments also will affect this drop in economy, debt repay risk will be remains
as it is (EIU Digital Solutions, 2019). GDP annual growth rate of Sri Lanka is 2%
(Tradingeconomics, 2019).

Micro businesses and SMEs

Micro businesses can me known as a type of small business which operates with less than 10
employees and earn less than $250,000 annually. Micro businesses often function as sole
proprietorships (Lauckner, 2019).

SMEs are known as small to mid-size enterprises which have revenues, assets, number of
employees etc. to certain level according to various countries. In European countries businesses
with less than 250 employees is considered as a SME, and in U.S businesses with less than 500
employees is considered as a SME (Ward, 2005).
Contribution of SMEs to Sri Lankan economy
A large part of Sri Lankan economy is made by Small and medium scale enterprises, these can
be found in all primary, secondary and tertiary sectors. There are SMEs in agricultural business
sector such as growing spices which collects many foreign exchanges to Sri Lanka (nhrep.gov,
n.d.).

There is a big interrelationship between SMEs and economies where growth of SMEs effect to the
economic growth and with the economic growth more SMEs can be created .There are more than
5000,000 SMEs in Sri Lanka and more than 3000 of them are registered as exporters
(CMA,2018) .They contribute around 52% of total GDP and 45% of national employment, by
giving providing more job opportunities they contribute for a fair income distribution in Sri
Lanka(Advocata Institute, n.d.).

In 2018 Sri Lanka has exported $11.1B and imported $18.7B, due to higher imports than exports
Sri Lanka has a negative trade balance of -$7.57B (oec.world, n.d.). Poor contribution of SMEs
can be the main reason for this because SMEs contributes less than 5% for Sri Lankan exports.
SMEs contributes a more percentage in exports for other countries such as china, 68% of
Chinese exports are contributed by SMEs. By giving more opportunities for SMEs to export, the
negative trade balance in Sri Lanka can be reduced than depending on large enterprises
(Contributor, 2018).

More than 80% of Sri Lankan enterprises are SMEs and they contribute more for Sri Lankan
economy by taxation.

Large scale enterprises

Scale of an enterprise is depending on some factors such as number of employees, annual
turnover, balance sheet total etc. Simply a large scale enterprise has at least 5000 employees,
annual turnover more than 1.5 billion euros, and with a total balance sheet value of more than 2
billion euros (insee.fr, n.d.).
Social economy
Social economy is the third sector of mixed capitalist economies which is made up with
collections of organizations which have social objectives. This includes co-operatives, non-profit
organizations, credit unions and other types of enterprises (Socialeconomy-bcalberta.ca, 2010).
Social economy can be classified as cooperatives, mutual societies, voluntary organizations,
foundations and social enterprises according to the European commission (Encyclopedia, 2014).

Importance of Small businesses to the social economy

As explained in above small businesses play a main role in society. Around 45% of national
employment is filled by SMEs in Sri Lanka. Most of the entrepreneurs get started with a SMEs
due the benefits provided by governments for SMEs, among those entrepreneurs there can be
social entrepreneurs who can startup social enterprises has the ability to impact on social
economy(Chron.com, 2012).

In Sri Lanka around 80% of enterprises are SMEs(2018) where they contributes more for the Sri
Lankan government by taxations than large enterprises, and a portion of this funds are used by
the government for social activities such as providing medical and educational facilities etc.
(Advocata Institute | Sri Lanka | Independent Policy Think Tank, n.d.).

Small businesses help to reduce the unemployment in rural areas and to increase their living
standards by developing infrastructure and by using resources from rural areas which can create
more job opportunities for them (sharma,2019).

Not only for qualified workers, SMEs hire people who has a lower chance of finding
employments such as disabled, young, older and less skilled workers with the motive of
contributing for the social economy (www.ilo.org, n.d.).
pro
and
 Enterprise
A profit business or a company
also known as an enterprise, but
it is most often associated with
entrepreneurial ventures. Mostly
an enterprise is formed by an
entrepreneur.

Entrepreneur
Simply entrepreneur is
a risk taker who
creates new businesses
with new ideas and
innovations and
enjoying most of the
 Serial entrepreneur
An entrepreneur who
continuously comes up with
new ideas, innovations and
starts new businesses is
known as a serial entrepreneur

Intrapreneur
Intrapreneur is a self-motivated and
innovative person who works to an
organization for a salary. Intrapreneurs also
have many entrepreneurial characteristics,
but they work under an organization.
 Owner manager
Owner manager is a person who own and manage a
business, most of the small businesses are carried by
owner managers.
 Lifestyle entrepreneurs
Lifestyle entrepreneur is an individual who take
a risk and create a business with the purpose of
altering their personal lifestyle, not with a motive
of increasing profits.

Social entrepreneurs
Doing businesses with the motive of solving community
based problems, or with the motive of social welfare is
known as social entrepreneurs.
 Growth entrepreneurs
Growth entrepreneurs are motivated by the
competitiveness of business. They often take more risk
and make large investments in both capital and time to
grow their business.

Survival entrepreneurs
Survival entrepreneurs manage business as a mean of economic survival.
They manage micro enterprises to feed themselves and their families.
 Revolutionary entrepreneurs
Revolutionary entrepreneurs create new businesses to change the
trends of world. They mainly focus on new innovations by taking risk
than other entrepreneurs. Most of the world famous entrepreneurs such
as Steve Jobs, Bill Gates and Elon Musk etc. are revolutionary
entrepreneurs who changed the world.
 Economy
A system of organizations and
institutions that either facilitate or play
a role in the production and
distribution of goods and services in a
society

Economic growth
An increase in the production of economic goods and
 Social Economy
Social economy is made up by with collections of
organizations which have social objectives. Social economy
can be classified as cooperatives, mutual societies, voluntary
organizations, foundations and social enterprises according
to the European commission.
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