What is Venture? Types and Importance of Venture
- 1. Venture & Entrepreneurship Presented by: Muhammad Qaisar - 19896 M. Seerat Nawaz - 19918 M. Hassan Amin - 19730
- 2. Table of Contents ❏ What is Venture? ❏ Venture creation process ❏ Types of Ventures ❏ Importance of venture creation in entrepreneurship ❏ Impact of venture creation
- 3. What is venture? ❏ Venture means ❏ a new activity, usually in business, that involves risk or uncertainty ❏ To risk going somewhere or doing something that might be dangerous or unpleasant ❏ Start-up entity developed with the intent of profiting financially ❏ May be considered a small business ❏ Business ventures are created based on ❏ Demand of the market ❏ Lack of supply in the market
- 4. Venture creation process Entrepreneurial sense-making and the venture creation process
- 5. Types of Venture ❏ Sole proprietorship ❏ Limited liability company (LLC) ❏ General partnership ❏ Limited liability partnership (LLP) ❏ Limited partnership ❏ Corporation
- 6. Types of Venture ❏ Sole Proprietorship ❏ Simplest business form under which one can operate a business ❏ The sole proprietorship is not a legal entity ❏ Refers to a person who owns the business and is personally responsible for its debts ❏ Make all the decisions without any shareholders to consult, and pay taxes as normal ❏ General partnership ❏ Business arrangement by which two or more individuals agree ❏ To share in all assets ❏ Profits, financial and legal liabilities ❏ Such partners agree to unlimited liability ❏ Any partner may be sued for the entirety of a partnership's business debts
- 7. Types of Venture ❏ Limited liability company (LLC) ❏ A LLC is a corporate structure & that is allowed under state laws ❏ The owners are not personally liable for the company's debts or liabilities ❏ LLCs can either be taxed like a partnership or like a corporation. ❏ Limited Liability is just what it sounds like. When you form an LLC to do business, you have limited liability if something goes wrong. ❏ Limited liability partnership (LLP) ❏ Allow for a partnership structure where each partner's liabilities is limited to the amount they put into the business ❏ Having business partners means spreading the risk, leveraging individual skills and expertise, and establishing a division of labor.
- 8. Types of Venture ❏ Limited liability partnership (LLP) - continue ❏ If the partnership fails, creditors cannot go after a partner's personal assets or income ❏ LLPs are common in professional business like law firms, accounting firms, and wealth managers ❏ Limited Partnership (LP) ❏ is a partnership made up of two or more partners ❏ limited partners do not partake in managing the business ❏ limited liability up to the amount of their investment ❏ The general partner of the LP has unlimited liability ❏ partner must contribute resources such as property, money, skills, or labor
- 9. Types of Venture Corporate venture (Corporation) ❏ The practice of directly investing corporate funds into external startup companies ❏ Usually done by large companies who wish to invest small but innovative startup firms ❏ Through joint venture agreements and acquisition of equity stakes ❏ Provide the startup with management and marketing expertise, strategic direction, and/or a line of credit
- 10. Importance of venture creation in entrepreneurship ❏ Promotes Entrepreneurs ❏ Converts technical know-how to a commercially viable project ❏ Promotes products ❏ Modern technology become commercially feasible and can easily promotable ❏ Brings out latent talent ❏ Give more thrust to potential talent ❏ Promotes exports ❏ Encourages export oriented units because of which there is more foreign exchange earnings
- 11. Importance of venture creation in entrepreneurship ❏ Creates more employment opportunities ❏ Encourages self employment and motivates more educated unemployed to take up new ventures which have not been attempted so far ❏ Helps technological growth ❏ Modern technology will be put to use ❏ Helps growth of economy ❏ There will be an increase in the production of consumer goods which improves the standard of living of the people.
- 12. Impact of venture creation ❏ Venture creation is starting point for any current or future entrepreneurs ❏ New ventures has an impact on economic development ❏ Establishment of new ventures targeted at providing specific solutions to identified needs or problems in the marketplace ❏ That will separate from the rest ❏ Venture creation is to provide a significant value to an identified segment of the market ❏ Establishment of a sustainable business Source: https://www.emerald.com/insight/content/doi/10.1108/APJIE-12-2016-003/full/html#sec003
- 13. Any Questions?
- 14. Thank You!