mba thesis- entrepreneurial opportunities in pakistan.pdf

7/25/2019 MBA Thesis- Entrepreneurial Opportunities in Pakistan.pdf

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Entrepreneurial Opportunities in Pakistan

By: Mahrukh Arif

MBA (Human Resource Management)

Thesis

Presented to the faculty of NUST Business School

National University of Sciences and Technology, Islamabad

in Partial Fulfillment

of the Requirements

for the Degree of

Master of Business Administration

May 2015


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Acknowledgements

In The Name of Allah, the Most Beneficent, the Most Merciful

This Master thesis is the concluding part for the Master of Business Administration degree in

Human Resource Management at NUST Business School. I would like to express my gratitude

to those who have helped me in the successful completion of this Master Thesis.

First of all, I would like to express my sincere gratitude to my supervisor, Ms. Sana Ahmed.

Without her constant encouragement and guidance this research would not have been possible. I

would also like to thank her for establishing my keen interest in entrepreneurship during the

course that inspired me to carry out this research.

I would like to thank my parents and family. They were always supporting me and encouraging

me with their best wishes.

Last but not the least, I would like to thank my friends, especially Anum Ghaffar and Rana Iradat

Sharif Khan for their support throughout the study that motivated me and helped me to complete

my thesis.


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Abstract

Entrepreneurship is a key area that can enhance or worsen the countrys economy. With the

changing structure of markets and technology, mew types of entrepreneurships have emerged

among the ones that were already present.

The main aim of this research is to study the existing types of entrepreneurship on a scale of

various factors. Small business entrepreneurship, large business entrepreneurship and social

entrepreneurship is studied in terms of the finances available, the support, the technology, and

the market along with entrepreneurial vision, intention, talent and creativity and knowledge.

For analysis, secondary data is collected through various journals. Based on the analysis, the

opportunities present in Pakistan are observed.

KEY WORDS: Entrepreneurship, Small Business Entrepreneurship, Large Business

Entrepreneurship, Social Entrepreneurship


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Contents

Introduction............................................................................................................................................. 5

Methodology ........................................................................................................................................... 6

Roadmap................................................................................................................................................. 6

Literature Review.................................................................................................................................... 8

Entrepreneurship Explained................................................................................................................. 8

Entrepreneurship Opportunities ........................................................................................................... 8

Entrepreneurship Opportunities in Pakistan....................... .......................... ......................... ................ 9

Hurdles for entrepreneurial ventures in Pakistan................................................................................ 10

Large Business Entrepreneurship....................................................................................................... 11

Small Business Entrepreneurship....................................................................................................... 12

Social Entrepreneurship..................................................................................................................... 13

Small Business Entrepreneurship........................................................................................................... 14

Finances Available ............................................................................................................................ 14

Support for the Venture ..................................................................................................................... 15

Access to the intended market............................................................................................................ 16

Education/Training ............................................................................................................................ 16

Technology ....................................................................................................................................... 17

Gender Biases.................................................................................................................................... 17

Entrepreneurial vision........................................................................................................................ 18

Entrepreneurial Intention ................................................................................................................... 18

Entrepreneurial Talent and Creativity................................................................................................. 18

Entrepreneurial Knowledge ............................................................................................................... 18

Large Business Entrepreneurship........................................................................................................... 19

Finances Available ............................................................................................................................ 20

Support for the Venture ..................................................................................................................... 20

Access to the Intended Market ........................................................................................................... 21


Technology ....................................................................................................................................... 22

Gender Biases.................................................................................................................................... 22


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Entrepreneurial Vision....................................................................................................................... 23

Entrepreneurial Intention ................................................................................................................... 23

Entrepreneurial Talent and Creativity................................................................................................. 23


Social entrepreneurship ......................................................................................................................... 24

Finances available ............................................................................................................................. 25

Support for the venture ...................................................................................................................... 25

Access to the intended market............................................................................................................ 26


Technology ....................................................................................................................................... 27

Gender Biases.................................................................................................................................... 27

Entrepreneurial vision........................................................................................................................ 28

Entrepreneurial intention ................................................................................................................... 28

Entrepreneurial talent and creativity................................................................................................... 28


Conclusion ............................................................................................................................................ 29

Recommendations ................................................................................................................................. 30

Bibliography ......................................................................................................................................... 31


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Introduction

Entrepreneurship in itself is a vast field consisting of specific areas. Moreover this field is not

fully developed yet as newer concepts keeps arising in the area of entrepreneurship.

The process of entrepreneurship differs in many ways because different people would have

different ideas about providing goods and services and at what magnitude.

The magnitude and type of the business depends on a number of factors.

The finances available for the business would determine how much it will expand along with the

entrepreneursintentions and vision about his business.

Furthermore, every venture requires support; an entrepreneur alone cannot begin and sustain a

venture if he is constantly met with resistance.

The kind of market the entrepreneur wants to venture in also determines the size and profitability

of the business in the short run as well as the long run.

Since the education and training regarding entrepreneurship is being provided in our colleges and

universities now, the number of entrepreneurial ventures is increasing. Those students who have

ideas about a business are going ahead with the idea now because they have been educated andtrained about how to run a business.

The emergence and implementation of technology has proved to facilitate businesses as it makes

the functioning of the processes smoother and in the long run it decreases the costs of running

the business.

Gender biases, however, are a main concern when it comes to beginning a business venture.

Females are discouraged from doing so while males are encouraged. That is why, many business

ideas do not take form and the potential contribution to the economy of the country is lost.

The health and sustainability, ultimately depends on the four intrinsic factors namely,

entrepreneurial vision, entrepreneurial intention, entrepreneurial talent and creativity and

entrepreneurial knowledge.


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Methodology

The main source of research would be secondary. Three types of entrepreneurships would be

examined on the extrinsic and intrinsic factors that are listed.

The information collected through this mode would then be analyzed keeping in mind the

following roadmap.

In the end, conclusion and recommendations would be presented after analysis.

Roadmap

Type of Entrepreneurial Ventures to be covered under this:

1) Small Business Entrepreneurship

2) Large Business Entrepreneurship

3) Social Entrepreneurship

Factors giving rise to Opportunities in these areas:

EXTRINSIC FACTORS:

1) Finances available:

a) Personal

b) Commercial

2) Support for the venture:

a) Personal

b) Societal

c) Governmental (regulations and grants)

3) Access to the intended market:

a) Existing market

b) Create a market


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4) Education/Training:

a) Provided by institutes

b) Provided by family (in case of family businesses)

5) Technology:

a) Creating new businesses

b) Facilitating existing businesses

6) Gender Biases:

a) For males

b)

For females

INTRINSIC FACTORS:

1) Entrepreneurial Vision

2) Entrepreneurial Intention

3) Entrepreneurial Talent and Creativity

4)

Entrepreneurial Knowledge


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Literature Review

Entrepreneurship Explained

The economy of a country presents various opportunities for entrepreneurship. People take this

opportunity in order to reap benefits, mostly in the monetary terms. Putting it simply

entrepreneurship takes place when a person realizes that there is a buyer and seller in the market,

so he steps in to facilitate this transaction and ends up earning his own profit from it. It all

eventually depends on the individual realizing the opportunity that may arise in the market and

benefitting from it in the best way possible. This is important because if the opportunity is just

realized but not utilized as it should be, then the act of entrepreneurship may fail too quickly.

The whole process of entrepreneurship does not only benefit the buyer, seller and the

entrepreneur, but it also has a favorable impact on the economy of the country. An economy

benefits largely from the businesses that are set up in it, so creating and realizing

entrepreneurship opportunities is important for the advancement of any economy.

(Holcombe, 2003)

Entrepreneurship Opportunities

Recognizing the opportunity that may arise depends on the type of information that is present in

the market. How someone deciphers it and uses it to their advantage would define their

entrepreneurial process. The individual looking for such an opportunity should have right

information about the market, should have some knowledge himself and be aware of the optimal

time and place for cashing on this opportunity. An example of this can be found in our very own

McDonalds, Ray Kroc realized the potential of the restaurant and bought it from its original

owner and turned it into a global brand. McDonalds initial success was a known fact but Ray

Kroc was the one to decipher its actual potential and use it to his own advantage, in turn

benefitting the buyer, the seller and the economy as a whole.

(Holcombe, 2003)


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Entrepreneurship Opportunities in Pakistan

Entrepreneurs build up their venture on a creative idea and run it on their innovation. The

creative idea may stem from an opportunity that would arise in the market. Sometimes the idea

creates the market e.g. Apple created a market for its innovative products and the rest of the

players in the industry followed. Creating a market also entails first mover advantage for the

entrepreneur. In order to keep the venture up and running, the entrepreneur has to keep a look out

for risky conditions. So an entrepreneur has to do both, build an innovative idea and deal with

the risk in the market.

(Haque, 2007)

The norm is that businesses start small and usually use their own funding for the venture. This is

true because banks do not easily provide funding to new businesses; they need to invest their

money in already successful ventures so that they do not lose their money. There does exist a

venture capital industry but it is not rooted well enough, financially or legally, to aid new

entrepreneurial ventures. Pakistan has a poor structure in this regard and so facilitating the

development of entrepreneurship becomes a problem.

(Haque, 2007)

This weak structure is manipulated by businessmen and they use it instead for wealth

accumulation through corruption. Also those businesses prospered more who were favored by

the government and were provided support and funds from them. This eventually resulted in

government favorites accumulating the most wealth. This is true in both the public and the

private sector. Government favor is given to few and this has stood in the way of the

development of entrepreneurship as a whole in Pakistan. It can be said that there is not a very

encouraging environment for entrepreneurship in Pakistan.

(Haque, 2007)


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It cannot be argued that the benefits of entrepreneurship are several:

1) A sound source of income for the individual

2) Creates employment opportunities

3)

Creation of products and services

4) Contributes to the economy

(Munir, 2012)

Large Business Entrepreneurship

The concept of traditional entrepreneurship is rapidly changing and giving way to large businessentrepreneurship. Individuals aspiring to be entrepreneurs may start big from the beginning or

start small first and then build up to a larger venture. Building towards a large venture requires

creativity and innovation on the entrepreneurs end. Not just that, he should be risk-taking and

exude a sense of proactive-ness in order to mold the business according to changes in the market,

economy, etc. As he is able to undertake the right organizational process, he is able to expand his

business.

(Morris & Trotter, 1990)

Achieving corporate entrepreneurship is not that easy. Clear steps for it cannot be identified

either. Generating new products and services is a work of innovation, but what really counts is

being proactive. Most entrepreneurs while staying reactive neglect the proactive perspective to

everything and may fail in the long run. Once a venture begins, the innovation and proactive-

ness would fade away eventually, the entrepreneurial spirit may be lost and true entrepreneurship

would be lost on the way.

(Morris & Trotter, 1990)


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Small Business Entrepreneurship

Start-up businesses would either bring in a new idea or cash upon an already existing idea in the

market. Mostly small businesses intend to venture into an existing market with an existing

customer base. These businesses like to stay small and are not very innovative when it comes to

expansion. Examples of such businesses would include restaurants, real estate agents,

shopkeepers, doctors, lawyers etc. Individuals running these businesses like the idea of having to

work for no one, flexible hours etc.

(Hurst & Pugsley, 2011)

Small business owners have to stay determined at all times in order to keep their venture

successful. Being small does not mean that they do not help the economy. They definitely have a

hand in creating jobs and providing products and services that people need. These businesses

have the potential to fuel local and national growth.

(Schaffer, 2006)


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Social Entrepreneurship

These businesses strive for social and environmental prosperity. Their focus is different as

compared to the types of entrepreneurship discussed above.

Social entrepreneurs aim towards providing betterment for the community and work towards

improving the society. The basic principles of entrepreneurship is the same for them, they

innovate, they bring something new to the market or build a business on an already existing

market, they take risks and they have to be proactive but their end purpose is different. Instead of

earning profits, their achievement is improving the society.

(Quadri & Ayesha, 2013)

The first two types of entrepreneurship are well-rehearsed and well-developed. Social

entrepreneurship is still an emerging idea, especially in developing countries like Pakistan where

already the support system for entrepreneurs is weak. Social entrepreneurs need to stay creative

in order to implement favorable changes, one after another, in the society.


These ventures attract a different kind of investment; those looking to support their idea invest in

these businesses e.g. angel investors. However, this is not enough, government support and

facilities are still required for maximum impact. Social enterprises are not only able to improve

the society for now, but even for the future generations. This form of entrepreneurship should

definitely be encourage and is needed in Pakistan.



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Small Business Entrepreneurship

As the name suggests a small business has a small number of resources committed to it. For

example, it has less employees and a smaller business range, hence profits are small too. These

types of businesses are privately owned. At most they can be run by sole proprietorship or

partnerships etc.

These businesses seek to fulfill needs at a smaller scale and are not so eager to expand. Most

small businesses prefer to stay small.

(Payton, 2011)

Finances Available

Before starting a business, the entrepreneur should be well aware of where to bring his start-up

capital from.

The entrepreneur should focus on:

- Set-up costs

- Costs to bring in resources (raw materials, employees etc.)

- Costs for increasing capacity

There are various sources from where he can get these.

Internal Sources

Personal sources:These are the personal savings of the entrepreneur. It also includes finances

provided by friends and family. In a small business venture, this is the most common type of

source for financing.

Retained profits:Once the business starts making profits, those profits can be reinvested for

further operations of the business.


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External Sources

Bank loans:When the above sources are not enough, then the entrepreneur may turn to bank

loans. The advantage of this type of financing is that large amounts can be borrowed at once for

the starting up of the business. However, banks especially in Pakistan prefer to provide loans for

large businesses rather than small business.

Business angels:These are professional investors who look for potential businesses and invest

in them if they have good growth prospects.

(Riley, 2012)

Support for the Venture

Personalsupport comes from family members and close friend circle. Usually small business

ventures tap into the local market and not much far beyond that. Because their scope is small and

not very risky, they get due support from family and friends.

Societalsupport is provided by the society i.e. the locality in this case. Small businesses are

more up close and personal e.g. the local department store would be preferred over the

commercial supermarket. So support provided by the society in case of small businesses is

ample.

Governmentalsupport is less in this case, unfortunately. The government and banks provide

finances to larger corporations where their investment would be fruitful, small businesses are not

considered to be earning large profits so there are no sound policies present to support them.


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Access to the intended market

Existing Market: if the market where the entrepreneur intends to venture into already exists then

it would be easy for him to start the business venture. Already, the market would be tapped into

and ample information would be present for the entrepreneur to build the business on. This

situation is actually ideal for small businesses where the market already exists.

Create a Market: if the entrepreneur intends to create a market from scratch, it would be

difficult for him to start the business. Everything would have to be done from the beginning, the

market research, realizing the target market, promoting the new product and its features etc. This

would be a difficult job for a small business, and should only be done by large corporations e.g.

Apple created a new market from scratch.

Education/Training

Provided by institutes:As opposed to previous trends, entrepreneurship courses are

increasingly being added in the curriculums of universities. This is giving a rise to a force of

upcoming entrepreneurs. Those who aspire to become entrepreneurs get a direction from these

courses. Especially, the trend of small business entrepreneurship is on the rise.

Provided by family(in case of family businesses): Usually these businesses are small or

medium in size. The owners of these businesses train their children in such a way that they

would be able to take over the business in the future. So these upcoming entrepreneurs get due

training from their families.


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Technology

Creating new businesses:Bringing in new technology or technology related products to create

new ventures requires heavy investment and cannot be achieved by a small business

entrepreneur.

Facilitating existing businesses:However, if these entrepreneurs are smart, they would see the

economical side of implementing technology to expedite their business processes and lower costs

of their businesses in the long run.

Gender Biases

For males:Our society is such that having male entrepreneurs is a common trend. Males are

preferred to begin a venture or take over their family businesses.

For females:Female entrepreneurs are a rare sight. Women are not empowered enough to go out

of their way to start a business venture. They have to face many challenges if they go towards the

entrepreneurship side and even if they are able to achieve what they aspire for, their business

cannot run for long because being a woman in itself would cause unprecedented hurdles in this

field.


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Entrepreneurial vision

Entrepreneurial vision stems from the idea an entrepreneur wants to pursue. His passion to

follow through that idea and creates a vision, a long term standing that he has for his business in

mind. Whatever the size of the business, it is important that the one who created the venture,

holds a long term vision for it. This way, the business would prosper and stand the test of time.

Entrepreneurial Intention

Having an idea is common, but brining that idea to life depends on the intention of the

entrepreneur. Many potential entrepreneurs do not have the resources or the proper will to pursue

their idea, but those who do, are successful in creating what is in their mind. Again, the size of

the business is not of concern here, having an entrepreneurial intention, whether one is starting

the business or taking over it, is the key to make the business prosper.

Entrepreneurial Talent and Creativity

An entrepreneur has to play a lot of roles at once. He is a leader, a manager and the one who

takes everyone on board to take them forward. He should be able to bring together the various

resources required to start up the business and keep it running the future. The entrepreneurs

creativity is evident when he has the idea of the product, makes it happen and solves the hurdles

that he has to face.


The entrepreneur should be well aware at all times of his business and the market that he is

operating in. In a small business venture, doing this is the easiest and hence maintenance of a

small venture is not very difficult. Also small businesses operate in a safer environment, usually

a market that has already been tapped into and been researched upon, so gaining knowledge of

the conditions and then applying the entrepreneurial knowledge while running the business

becomes easy.


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Large Business Entrepreneurship

Large businesses are usually associated with new ideas and opportunities since these are the

ingredients that would help them get well established and expand. New ideas at the foundation of

a business help it to counter competitors as it is bringing something new into the market. It may

give them a competitive edge as well which in turn is essential for the business to keep growing.

Since a large business is a high-risk venture, the entrepreneur has to take calculated risks with

the new ideas that he is presenting into the market. Even if the ideas are not entirely new then

they need to be tweaked in a manner that they are able to counter the competition that already

exists or may arise in the future. Until the entrepreneur is perfectly clear about what direction to

take his business in, he should not risk it.

The primary source of the functioning of the business is the concept that the entrepreneur brings

with him along with constant strategy renewal. The entrepreneur has to stay vigilant and

proactive at all times so that all his hard work pays off.

The profits reaped from a large business venture are quite fruitful, but if the venture fails then the

losses are great too and most of the time leads the entrepreneur to bankruptcy.

(May, 2014)


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Finances Available

Personal:In the case of starting big initially, personal savings can be used by an individual in

addition to finances provided by friends and family but it would not be enough as was in the case

of a small business venture. To start and keep a large business venture going. An entrepreneur

would need a large start-up capital followed by large bank loans.

Commercial:Mostly commercial means of financing would be used in a large business venture.

Long term bank loans would be taken to start the business and keep it going. The start-up capital

for the venture is large but in the future the profits are large too.

Support for the Venture

Personal:Starting a large business is a much riskier venture than a small business. If the

business does not reap profits then the losses are too great. So there would be hesitant personal

support for the entrepreneur and in some cases strong resistance against the venture might occur.

Societal:Our society is categorically a risk-averse society. Just as personal support for the

entrepreneur would be hard to come by, societal support would be rare too. If the business does

not directly impact the society in a favorable way then they would not be too supportive for the

venture.

Governmental:In contrast to the above two factors, governmental support for a large business

would be greater. The government would be willing to provide grants to larger ventures because

they contribute more in the economy and have a greater chance of reaping heavier profits. So

governmental support for large business entrepreneur is greater than personal and societal

support.


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Access to the Intended Market

Existing market:A large business is quite risky so if it ventures into an existing market then it

has to have proper market research done before hand because mistakes would be quite costly.

Moreover competition from small businesses as well as large businesses has to be dealt with

because loss of sales in any form could make the business lose precious profits.

Create a market:This is an ideal option for any business especially for the entrepreneur who

aspires to create a large business. An innovative idea can be cashed upon and a new market can

be made. This is a good option because then the entrepreneur would have little or no competition

to deal with and all focus can be on the expansion of the business.

Education/Training

Provided by institutes:Entrepreneurship courses are being introduced into the curriculum of

various institutes, the basics and concepts of entrepreneurship are taught to prepare the student

force for their future in case they are not able to find jobs. Students of today are well equipped in

this regard. However, whether the venture stays small or starts as a large business is up to the

entrepreneur.

Provided by family:In case of large businesses run by families, the next generation is equipped

with the knowledge of the business so that they are able to carry it forward. In addition to this if

these young entrepreneurs are provided with entrepreneurship education as well then they can

improve their businesses a great deal.


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Technology

Creating new businesses:A large business can be created using technology e.g. innovativetechnology like that used in Apple products has redefined the whole industry. In Pakistan,

Qmobile can be categorized as such a business because it provides a large number of features at

affordable prices.

Facilitating existing businesses:It does not mean that technology can be used to make a

business, but it can be used to facilitate business processes. Especially if the entrepreneur aspires

to have a large business then technology has to be embedded in it to facilitate business processes

because in the long run it decreases costs of running the business and greatly inflates profits.

Gender Biases

For males:When thinking of a large business venture, it is assumed that the entrepreneur of

such a venture would be a male. This bias remains in our society and in many others that large

businesses can only be started and run by males as females are either incapable of doing this or it

is out of their domain of expertise.

For females:As mentioned above females are hardly ever seen as entrepreneurs let alone large

business entrepreneurs. Even if some try to achieve large business entrepreneurship then they are

met with such strong resistant from family, friends and society that they cannot follow up their

plans to be an entrepreneur. There is little or no support for female entrepreneurs.


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Entrepreneurial Vision

The Vision that an entrepreneur holds for his business defines where the business would be

headed towards. While running a large business or while beginning one, the entrepreneur should

have an expansion-oriented approach. Since the aim is to be the entrepreneur of a large business,

the perspective should be such that it leads the business to the greatness that has been envisioned

for it.

Entrepreneurial Intention

Achieving the milestone of a large business depends heavily on what the entrepreneur intends to

do. The entrepreneur may want to provide a product or a service and expand in the market. All of

it is based on what product he aims to deliver and how far in the market he is willing to expand.

If the idea is innovative enough to stand through time and there is enough opportunity present in

the market then a large business can prosper.

Entrepreneurial Talent and Creativity

In the case of a large business venture, entrepreneur talent and creativity goes a long way. The

aspiration is to grow the business, an expansion strategy is followed and for that the product or

service provided by the business must be subjected to constant innovation so that sales keep

growing. The entrepreneurs talent and creativity is truly tested when the challenge of expanding

the business is presented to the entrepreneur.


The knowledge of an entrepreneur involves a number of areas, ranging from resources for the

venture, market knowledge, knowledge about the product and consumer behaviors etc. The

entrepreneur has to have various sources of information and knowledge about all that are directly

or indirectly involved with the business venture in order to expand and grow the business

according to the entrepreneurial vision.


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Social entrepreneurship

Social entrepreneurship is an upcoming form of entrepreneurship and is attracting more people

since it is dedicated towards the good of the society. However there is much uncertainty present

about what a social entrepreneur does, how does he run his business and how does he take it in

the long run. But on a basic level, any good step being taken in a society is termed as social

entrepreneurship. A specific definition for this form of entrepreneurship has still not surfaced as

of yet.

It is mostly categorized by bringing about social change that has a lasting effect on the society

and benefits the society in the long run.

Those promoting and financing social activities do so for the societal benefits or for the sake of

CSR but the ROI is unclear in this venture. But still a lot of people want to engage into it for the

good of society rather than only for their personal benefits.

The lack of clarity that is persistent while explaining social entrepreneurship might even benefit

the venture. Beneficial activities categorized as social entrepreneurship attract attention, funding

and support from those who want to indulge in these activities and in turn societal good is

achieved.

So having a vague definition does not really matter as long as the purpose of the activity is being

achieved, i.e. social benefits.

(Martin & Osberg, 2007)


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Finances available

Personal:Social Entrepreneurship entails a form of business that focuses more on the societal

benefits than personal benefits. Most of the finances available for starting such a venture would

be personal savings and finances provided by friends and family. This is also easier to do

because it is rare that a social entrepreneurship venture would become a large business. So

starting it off as a small venture using personal sources of finances is more common in this case.

Commercial:The nature of the business is such that bank loans would not be provided easily.

Banks prefer to provide finances to businesses that would reap profits in the long run and would

be able to pay back the loan. Government funds would not be easily available to these businesses

too because profitable businesses are the ones that contribute directly to the economy. Social

entrepreneurship businesses are considered not to be a direct contributor to the economy. So

commercial sources of finances for these ventures are hard to come by.

Support for the venture

Personal:Support provided for the venture by the family and friends of the entrepreneur would

be moderate. Since starting a social venture requires investment but little or no return on

investment, people would be hesitant to start or support someone who wants to start this venture.

Societal:The society would provide support for a social business because it benefits them

directly. There are more chances that the entrepreneur would get monetary and non-monetary

support from the society as compared to other sources of support.

Governmental:Government support regarding funds would not be that great because these

businesses do not reap profits or contribute directly to the economy.

The non-financial support would be there because social entrepreneurship is hard to come by.


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Access to the intended market

Existing market:The market for social business ventures exists but few entrepreneurs are well

known. So a new social entrepreneur can either tap into the existing market or improve the

services that are already being provided or target a market that still has not received that service.

Create a market:Social entrepreneur can provide a service that has not been provided before.

This way they can create a market for their business and serve the target market that has not been

served before. In the case of social entrepreneurship, this is a better option because then the

entrepreneurs get to provide services to those who had previously been deprived of them.

Education/Training

Provided by institutes:Institutes have begun to give their students a sound understanding of

entrepreneurship as a whole. However, even during this, students are told on how to reap profits

from their businesses. The ultimate goal of every business is to earn profits. Examples of social

entrepreneurships are less and they are not widely taught as well because they are not considered

to be a means to earn a living. So the entrepreneurship courses do not emphasis much on these,

instead they emphasize on how an entrepreneur should make their businesses profitable.

Provided by family(in case of family businesses): Most of the family businesses are for-profit

businesses. Families set up businesses and train their next generation to take care of the business,

expand it and make it more profitable. Hardly any family businesses are focused towards social

services. However, some profitable businesses devote their time and money to social causes but

they cannot be termed as social entrepreneurs.


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Technology

Creating new businesses:Creating new businesses based on technology is possible in the case

of large business entrepreneurship. Social entrepreneurship, since is focused on providing social

services cannot be based on technology. However it can be facilitated with the use of technology.

Facilitating existing businesses:Technology can be used to facilitate existing social businesses

e.g. they can have websites describing their mission, vision and goals. This way people would

get to know more about the business. Other business processes can be automated as well to

facilitate the functioning of the business.

Gender Biases

For males:As discussed before, any kind of entrepreneurship is considered to be male-oriented.

So any social venture in our society is also thought to be better executed if started by males

rather than females.

For females:Female entrepreneurs are not widely heard of. So in the case of social

entrepreneurship, which in itself is a rare type of entrepreneurship, even rarer is the fact that a

female would start a social business venture.


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Entrepreneurial vision

The entrepreneur has to have a vision that is not profit-centric for this venture. At the same timethe vision should be long term. The entrepreneur should see how his/her business would progress

in the future especially if it is of this type and has less support as compared to the other two types

of entrepreneurship.

Entrepreneurial intention

The entrepreneurs intention in this type of venture is not about monetary gains. The

entrepreneur aspires to serve the society by providing social services and bringing about a

betterment in the society. Unlike the other two types of entrepreneurship where the intention is to

earn more profits and expand.

Entrepreneurial talent and creativity

The entrepreneur has to have creative thinking in the sense that he should be able to keep his/her

business going. Idea execution depends on the talent and creativity of the entrepreneur. Social

entrepreneurship requires dedication and commitment that should come from the entrepreneur so

that the venture can be a success and stay a success in the long run.


The entrepreneur has to be very vigilant when venturing into this business. Social

entrepreneurship is still an upcoming field especially in our society, so one has to have perfect

knowledge before venturing into the market for maximum success. It is a risky business and

needs a lot of commitment especially if there is less monetary return, hence entrepreneurial

knowledge in this regard can prove to be a huge asset.


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Conclusion

There are various types of entrepreneurships but these are most generally found. Going into the

technicalities of entrepreneurship would open new branches to the field but as of now it is kept

quite general.

Small business entrepreneurship, on a general note, has more personal finances available, high

personal and societal support whereas governmental support is less. It is more feasible if it

ventures into an existing market rather than creating a new market. Technology can be used to

facilitate this business type.

The entrepreneurial vision in this case should be long term, whether he wants to keep the

business small or expand it in the future. The entrepreneurial intention is gauged by what

products or services the entrepreneur wants to provide through his venture.

Entrepreneurial talent and creativity is required in every venture, be it small or large. Creative

business ideas are able to sustain the venture for a long time. Entrepreneurial knowledge, having

knowledge about the type of business the entrepreneur is venturing in and how to sustain it is

very important.

Large business entrepreneurship has more commercial finances available for it and governmentalsupport is high. Venturing into a new market is more feasible because it gives the business an

easy opportunity to grow. Technology can be used as the basis for conducting this business; it

would cause the costs to fall in the long run and profits to inflate.

The entrepreneurial vision would be such that it would sustain the large business in the long run.

The entrepreneurial intention is to expand the business and keep increasing profits.

Entrepreneurial talent and creativity should be such that a large business is able to form on it.

Entrepreneurial knowledge in this case is important because heavy investments and long term

profits are at stake. So the entrepreneur should be aware of the market at all times and the

business should function accordingly.

Social entrepreneurship has more personal finances available as compared to commercial

finances. They have lower governmental support. Creating a new market i.e. providing a social


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service that is not already being provided is more feasible in this case. Technology can be used to

facilitate business processes.

Entrepreneurial vision and intention should be focused on providing social good keeping in mind

that monetary returns would be less in this case. Entrepreneurial talent and creativity should be

tweaked according to social businesses. Entrepreneurial knowledge is important in this case as

the entrepreneur should be aware of the kind of social services already being provided and what

does he need to provide in order to make a difference in the society.

Preference for male entrepreneurs is prevalent in all types of entrepreneurship.

Entrepreneurial education is provided at universities to prepare potential entrepreneurs.

Generally, the intrinsic factors, namely entrepreneurial vision, entrepreneurial intention,

entrepreneurial talent and creativity and entrepreneurial knowledge are important in all types of

entrepreneurship, they just need to be tweaked according to the business venture that the

entrepreneur aspires to begin and grow.

Recommendations

Support for all types of entrepreneurship should be present as all of them contribute to the

economy one way or another.

Government should provide more grants for small businesses and social businesses so that even

small profits that are made benefit the economy and social good can be done in the society.

The society in general should be more supportive towards female entrepreneurs because a lot of

entrepreneurial opportunities are lost due to gender biases in the society.

Businesses according to their nature should enter the market and embed technology where

possible and feasible.

Entrepreneurship courses should become a permanent part of the curriculum at universities so

that students are always prepared to make a living.


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