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Types of entrepreneurship: Survival, Lifestyle, Dynamic growth and SpeculativeAccording to Dollinger (2003), the entrepreneur creates an innovative business or organization or network for profit or growth under conditions of risk and or uncertainty. While this is a general definition that captures the essence of entrepreneurship, it does not capture the psychological reasons for wanting to be an entrepreneur.Lifestyle entrepreneurshipFrom an economic theory view, lifestyle firms are set up to (i) undertake an activity the owner enjoys or (ii)achieve a level of productive activity that affords sufficient income to the owner (Burns 2001). Moreover, Shaw and Williams (2003) believed that small sized businesses provide an avenue for the development of specific entrepreneurial cultures such as, the lifestyle entrepreneur. Characteristics of lifestyle entrepreneurship include:An entrepreneurial process motivated by quality of life rather than growth. The main reason for existence is lifestyle with limited growth focus.The undertaking of a lifestyle entrepreneurship orientation may result in the underutilization of resources.Management activities in lifestyle entrepreneurship may be characterized as irrational.There is a lack of focus on marketing and product development.There is a failure to capitalize on information and communication technology opportunities in the market. The lifestyle entrepreneur may be unprepared for external threats.According to Komppula (2004), lifestyle entrepreneurship is motivated by survival and the need to maintain the way of life.Examples of lifestyle entrepreneurship ventures include: ‘mom and pop stores’, gas stations, small retail stores and mini marts.Investment in fixed assets is modest.Owners tend to invest long hours of work in the venture.Lifestyle ventures tend to have a high risk of failure and profits from reselling the business tends to be lowSurvival EntrepreneurshipThe basic goal of this venture activity is to survive and meet the venture’s financial obligations. Many startup ventures engage in survival entrepreneurship where their long term goal is to stay in business. Survival entrepreneurship is characterized by:Cutting costsLaying off employeesEmployment freezeA mindset of preservation of the present state of affairsA fear of committing to future plansDynamic GrowthThis type of entrepreneurship is characterized by a high initial investment. The entrepreneur engages in reinvestment as growth is the objective. The aim is to increase the capital gain for investors. Profits can be achieved from the sale of the goods and services or from the sale of the existing business. Penrose (1959) like Schumpeter viewed the firm as a profit –seeker. According to Penrose, successful firms want profits to create further profits .The growth orientation is characterized by:Expanding operationsFacilities such as a cash flow or credit line to finance growth prospectsHuman resources that possess the skills, abilities and competences to perpetuate a growth cultureSpeculative ModelThis type of entrepreneurship is where the venture’s time frame is shorter. The objective is to show the potential of the business and then sell it. Research shows that speculative entrepreneurship results in opportunities even when there is no new information. Mises (1949) describes the entrepreneur as recognizing opportunities in the environment for profit. The entrepreneur uses these opportunities to restore market equilibrium by ‘promoting and speculating’. ................
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