What is the difference between entrepreneurship and small business management

What characteristics does a small business have? Are they physical, such as a garage, or a table with lemonade? Perhaps small is two people staying up all night with tools and wiring trying to build a machine the world will eventually not be able to live without. Regardless of how you small businesses are viewed, they carry many different characteristics. Small businesses represent a large portion of Canadian economic output and are defined by many physical, economic, social, and geographic characteristics.

One factor that is present in a variety of small businesses today is their willingness to look globally [8]. Although their geographic location keeps them grounded physically, their outlook and their business model lends itself to a world-wide approach. This relates to the learning organization in ways that leaders and managers will look for big change outside of the walls and beyond geographical limitations.

Similarly to how many small companies will export their entrepreneurial products to other areas of the world, leaders in learning organizations will use the entrepreneurial attitude to export holistic knowledge internationally.

Starting a roofing company, for example, would demonstrate your entrepreneurial side, but if you were still hammering shingles, processing invoices and doing your own bookkeeping, you would also be a technician and manager.

A true entrepreneur, in Gerber's view, would delegate the technician and manager tasks to others while spending his time and energy building the business or working on the next business opportunity. Entrepreneurship begins with an innovative idea for a new business. The entrepreneur then pulls together the required resources to get the business started, like investors and talent.

Entrepreneurship can be a relatively short process in company's life cycle, or it can involve modifying and enhancing the business in order to make its products and services more attractive to customers. Entrepreneurship always involves taking risks , and the success or failure of the new business is on the entrepreneur's shoulders. Business management, on the other hand, is a continuous process of running a business and overseeing the administrative tasks the business requires.

While an entrepreneur is almost always the founder and owner of a small business, a manager is often an employee. Business management includes making adjustments to the processes initiated by the entrepreneur to eliminate waste, reduce costs or increase profits. While entrepreneurship is centralized in the company's founder, business management is decentralized among different departments and in the company's hierarchy, such as vice presidents, directors, managers and supervisors.

While entrepreneurship is primarily concerned with sustainable growth, business management is concerned with organizational goals and optimizing the usage of available resources. They exhibit an energetic attitude, instead of being comfortable with their existing situation.

Entrepreneurs are famous for their willingness to innovate and create new things. On the other hand, small businesses owners usually do something that is already being done by entrepreneurs.

The vision of entrepreneurs is quite often to influence and affect the entire world. Hence, their business usually has an impact on a large number of people, and their market share is usually quite high.

On the other hand, small businesses have a smaller share of the market because they provide service to a small number of people. Most of the entrepreneurial businesses start off as small businesses; however, because of their enthusiasm to expand and exploit development opportunities, they achieve success in a short span of time. Nonetheless, from the economic perspective, both these businesses are very important. They help in eliminating significant levels of unemployment that is a critical issue all over the world.

Small businesses and entrepreneurial ventures have also helped in the use of local resources and in bringing about technological development. Hence, both kinds of businesses are vital for economic growth and prosperity. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Entrepreneurship vs small business Posted by Terms compared staff Feb 6, Management.

Definitions and explanations Entrepreneurship Entrepreneurship refers to the process in which a business opportunity is identified by an individual, who uses this idea to formulate a business. Related posts: Entrepreneur vs entrepreneurship Difference between organic and inorganic business growth Venture capitalist vs business angel Sales vs business development Corporate strategy vs business strategy Goals vs milestones Career planning vs succession planning.

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A business that is owned and controlled by an individual or a few individuals.