2. Types of Entrepreneurial Ventures based on Business Structure
❖ Private Enterprise : Private limited enterprise is owned or controlled by private citizens, starting from sole proprietorship to large
publicly traded corporation. The company is commonly abbreviated as “Pvt.” or “Ltd.”
❖ Public Limited Enterprise : A public limited enterprise is a company that has authorization to issue enlisted securities to the
community through a first sale of stock or Initial Public Offering (IPO) and it is exchanged on no less than one stock exchange
market. Public company is commonly abbreviated as “Plc.”
❖ Social Enterprise : Social enterprise refers to a business that produces revenue with other objective rather than just monetary
profit.
3. Characteristics and Example of Private Enterprise
Characteristic of private enterprise:
1. A minimum member of 2 and maximum number of 200 stockholders are needed to start up a private limited enterprise.
2. Using the word private limited is a must for private limited company.
3. A private limited company does not have to keep the index of its members unlike public companies.
4. A private company can start their business operation with the presence of 2 directors.
Example of private enterprise : PT. Tirta Osmosis Sampurna
PT. Tirta Osmosis Sampurna is a private company engaged in the trade of Bottled Drinking Water (AMDK) and as the sole distributor
of Alfa One. PT. Tirta Osmosis Sampurna is a family company founded by 5 investors namely Rachman Chandrajaya, Helen
Chandrajaya, Sofyan Chandrajaya, Firmansyah Chandra and Nirwan Marhus. PT. Tirta Osmosis Sampurna was led by Mr Firmansyah
Chandra who acted as the administrator and was responsible for all company activities with the position of managing director
4. Characteristics and Example of Public Limited Enterprise
Characteristic of public limited enterprise:
Public company is that their stocks are available on stock exchange to be bought and sold to the public. Indonesia Stock Exchange
(IDX) also known as Bursa Efek Indonesia (BEI) is a place where the exchange of stocks happened.
Example of public limited enterprise: PT. Kalbe Farma
PT.Kalbe Farma is a pharmaceutical company that was established in 1966 and is supported by more than 17,000 employees, Kalbe has
now grown to become the largest healthcare provider in Indonesia, with superior expertise in the fields of marketing, branding,
distribution, finance and research and development. Kalbe Farma is also the largest public health products company in Southeast Asia,
with a market capitalization of Rp79.2 trillion and a sales value of Rp20.2 trillion at the end of 2017
5. Characteristics and Example of Social Enterprise
Characteristic of social enterprise:
the characteristics of social enterprise is offering products and services in a free trade market where the profits gained will be donated to
the local society or to their own business. This way will encourage them to help them in dealing with social issues such as helping and
enhancing the societies, environment and the life of individuals.
Examples of social enterprise:
Toms shoes are one of the example of social enterprise since they are dedicated to give away free shoes to poor children.
6. Types of Entrepreneurial Ventures based on Size
❖ Micro business : productive business owned by individuals or business entities that meet the criteria of Micro Business as
regulated in the Law number 20 year 2008
❖ Small business : productive economic enterprise that is carried out by individuals or business entities that are not subsidiaries or
not part of the companies branch that are owned, controlled or become part of either directly or indirectly from medium sized
business or large businesses that meet the criteria of small business based on the law number 20 year 2008.
❖ Medium business : a productive economic enterprise which is carried out by individuals or business entities or branches of
companies that are owned, controlled or become part of either directly or indirectly with small businesses or large businesses
with total net assets or annual sales proceeds based on the law number 20 year 2008
❖ Large business : productive economic enterprises carried out by business entities with the amount of net worth or annual sales
greater than medium businesses, which includes national business states or private property, joint ventures, and foreign
businesses who carry out economic activities in Indonesia.
7. Characteristics and Example of Micro business
Characteristic of micro business:
There are several characteristics of micro businesses in Indonesia such as firstly, the location is not settled yet, they can move their
location at any time. Second, does not have business license or other legality requirements including Nomor Pokok Wajib Pajak
(NPWP). Third, the average education level is relatively very low. Lastly, does not separate family finances with business finances.
Examples of micro business:
The examples of micro business is street vendors or traders on the market such as Bakso Kawi, Ayam Nurani and Bakso Moro Abadi is
included as micro businesses. The examples above has been proven as it is taken from the government site managed by Dinas
Perindustrian Perdagangan dan Koperasi Kota Yogyakarta.
8. Characteristics and Example of Small business
Characteristic of small business:
There are several characteristics of small businesses in Indonesia such as firstly, most have not been able to make a well business
planning. Second, already made business balance sheet. Third, the location of business has settled. Lastly, has business license and other
legal requirements including Nomor Pokok Wajib Pajak (NPWP)
Examples of small business:
Bakso Widodo, Tahu Tempe Tugiyo and Aditya. The examples above has been proven as it is taken from the government site managed
by Dinas Perindustrian Perdagangan dan Koperasi Kota Yogyakarta.
9. Characteristics and Example of Medium business
Characteristic of medium business:
There are several characteristics of medium business in Indonesia such as firstly, have better management and organization with clear
division of tasks among the finance department, marketing and production department. Second, has carried out financial management by
applying a regular accounting system that makes it easy for auditing and assessment or examination by banking. Third, has legality
requirements. Lastly, has trained and educated human resources.
Examples of medium business:
Usaha Las Supartono and Batik Suryanto. The examples above has been proven as it is taken from the government site managed by
Dinas Perindustrian Perdagangan dan Koperasi Kota Yogyakarta.
10. Characteristics and Example of Large business
Characteristic of large business:
The characteristics of a large size business is that it has a net worth of Rp. 10,000,000,000 that excludes land and buildings and has a
total amount of sales that reaches Rp. 50,000,000,000
Examples of large business:
The examples of large business are HM Sampoerna, Telekomunikasi Indonesia, and Bank Central Asia.
11. Types of Entrepreneurial Ventures based on Ownership
❖ Corporate Sector Enterprise : a business entity which capital is originated from private sector. The two parties where private
sector comes from are local and foreign investors.
❖ Public sector enterprise : a commercial or industrial organization that is owned, supervised, and managed by the government
with the intention of maximizing social welfare and support and uphold public interest. Public Enterprise in Indonesia is known
as Badan Usaha Milik Negara (BUMN).
12. Characteristics and Example of Corporate Sector Enterprise
Characteristics of Corporate Sector Enterprise:
The are several characteristics of BUMS which are first, shareholders can sell shares that they have on the stock exchange. Second,
distribution of capital and profits is based on the planting of shares in the company. In addition, voting rights in managing business
entities are also adjusted to the percentage of shares. Lastly, the owner or holder of a business entity has the authority and responsibility
to conduct hierarchical and functional supervision
Example of Corporate Sector Enterprise:
The examples of corporate sector enterprise are PT Djarum, PT Unilever Indonesia and PT CitiBank
13. Characteristics and Example of Public Sector Enterprise
Characteristics of public sector enterprise:
The characteristics of Badan Usaha Perseroan (Persero) are that the one who perform the proposal and issuance is the minister and the
directors are the leaders. Moreover, public enterprises are not facilitated by the state. PT.Pertamina, PT.Garuda Indonesia and PT.Kimia
Farma are the examples of Badan Usaha Perseroan.
Examples of public sector enterprise:
The examples of corporate sector enterrprise are Perum are Perum Bulog, Perum Damri and Perum Antara.
14. Typology of Entrepreneurship
Corporate entrepreneurship
Corporate entrepreneurship can be defined as business activities like reinventing strategies, innovation, and venturing within current
companies.
Examples: One of the example of corporate entrepreneurship is 3M. 3M has implemented corporate entrepreneurship which lead them
closer to their customers and is able to meet the wants of their customers that lead to customer’s satisfaction. Moreover, 3M has created
ideas that inspire to its employees to be innovative and think of new fresh ideas. In addition, 3M has made a rule called “innovation
rule” where employees are given 15 percent of the company’s time to have their own time and work on their own project
Corporate Entrepreneurship is only suitable for large companies because large companies can help new companies in terms of money by
giving capital. Moreover, large companies can give more time and consultation program or training for the preparation of the new
company to improve the company’s performance
15. Typology of Entrepreneurship
Technical entrepreneurship
Technical entrepreneurship is established to focus on the chances and threats that are related to the beginning of technological venture.
Technology is the largest wealth sources of every generation which in some cases, the creator or inventor is not the best location to offer
their product to the market
The example of technical entrepreneurship is PilihDokter which is established by Grace Tahir who is the director of Mayapada
Hospital.. PilihDokter is a platform to help people in Indonesia deal with medical issues by bridging people with the right doctor and
giving medical advices. Besides that, Tahir decided to be an angel investor that help support the startup ecosystem and human resource
platform in Indonesia that is called Talenta
Technical entrepreneurship is usually established from the skill that is owned by the founder therefore, the form of technical
entrepreneurship is commonly still small business. The skills owned can be combined with the current technology that is exist to make
small business.
16. Typology of Entrepreneurship
Social entrepreneurship
Social entrepreneurship is a place where entrepreneurs adjust their activities to be related to their target of building social value so there
is no motive of earning personal profit.
The example of social entrepreneurship is Sirtanio Organik Indonesia. Sirtanio Organik Indonesia is an organic rice producer that
supplies the market needs on a daily basis. Sirtanio produces brown rice and mixture of organic rice. Sirtanio Organik Indonesia is
present to improve the welfare of rice farmers in Indonesia through an integrated organic rice farming system, including training in rice
cultivation management, seed loans, skilled workers and fertilizers. Purchase of harvest prices is determined by the contract with a
margin of 20-30% above the local price.
Social entrepreneurship can suit both large company and small company. However there are some advantages for each company. By
using small company, it will be easier for social entrepreneurship to get partnership since small business is faster to work on projects
since there is almost no boundaries. While for big company, social entrepreneurship already have a lot of profit that can be used for their
social mission needs.
17. Similarities and differences between different types of entrepreneurial ventures
Business Structure
There are several similarities and differences of entrepreneurial ventures which are public enterprise, private enterprise and social
enterprise. One of the similarities of the ventures is that it helps decrease unemployment rate and they are companies who earn profits.
On the other hand, the differences of public, private, and social enterprise is based on the share purchase, what is meant by share
purchase is that for public limited company, shares can be bought and sold by the public. While for private company, shares cannot be
bought by the public and can only be bought by shareholders. Lastly, for social enterprise, shares of social enterprise cannot be bought
or sold, as long as the owner of social enterprise still holds the share of the company, the owner will get the profit.
18. Similarities and differences between different types of entrepreneurial ventures
Size
The similarities is that even though they have different sizes but they still have assets that could be used by the company or used as a
collateral to borrow money from the bank. On the other hand, the differences is that the amount of assets which are owned according to
the different sizes of business which is shown in Table.2 that the criteria of assets of micro business is 50 million rupiah maximum while
for small business starts from 50 million to 500 million. In addition, for medium business is starting from 500 million to 10 billion and
as for large business is larger than 10 billion and the tax paid by micro, small, medium and large business differs in accordance with the
income each business earned.
19. Similarities and differences between different types of entrepreneurial ventures
Ownership
The similarities of public sector enterprise and corporate sector enterprise is that every company should have at least a minimum of two
people to operate their business legally (LegalRaasta, 2017). Moreover, the similarities is that they have the intention to earn profit even
though earning profit is not the main target of public sector enterprise. On the other hand, the differences is that public sector enterprise
is owned by the government while corporate sector enterprise is owned by private sector.
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