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The relationship between small business and entrepreneurship

The relationship between small business and entrepreneurship
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Entrepreneurship is the process of designing, launching, and running a new business or enterprise.

Small business development is the process of helping small businesses grow and succeed.

But at some point, a small business was a starting point for the founder, and it could be considered one type of startup,

Small businesses are the backbone of the any country’s economy, accounting for more than half of all private sector jobs.

Small businesses are often started by entrepreneurs, who at some point were driven by a vision to be fulfilled.

The relationship between small business and entrepreneurship is therefore one of mutual dependence, since it is not a comparison of this or that, as at one point the idea became into a small business, and it could possible have grown into a corporation.

Small Business vs Entrepreneurship

But lets make sure that it is not a small business vs entrepreneurship comparison, since they are interdependent at one point with one and another.

While entrepreneurship is more a behaviour, a way of being, the skills a person has, the small business is the result of the action that the entrepreneur has undertaken.

It is not an either or, but the small business is a milestone achieved by the entrepreneur.

The OECD has a classification of the enterprises by business size, which it can be set up by the average revenue generated in a year or by the number or employees.

A micro enterprise is a business with 1-9 employees, a small enterprise has 10-49 employees, medium sized enterprises have 50 to 249, and large enterprises employ more than 250.

Based on this, if we have a solopreneur that starts his entrepreneurial venture by himself, he or she is basically a self-employed starting the journey.

Having spot the new business opportunities, developing a business plan, acquiring the needed investment and assuming its risk, the entrepreneur embarc on this new journey to offer his products or services and grow overtime.

The entrepreneur can decide if he or she want to remain as it is, or gather a group of individuals to build up a business team that eventually can keep growing until it reaches out that label of small business, as he reached out the 10 employess number or a given revenue.

Once the entrepreneur has consolidated his business idea, now he has to change and develop management skills and improve his decision-making process in order to run properly the group towards the common objective.

How much the business will grow, depends on the entrepreneur’s aspiration to think outside the box to spot new opportunities, achieve a desired profitability, and create new sources of income to support growth and gain market share.

Difference between small business owners and entrepreneurs mindset

There are a few key differences between entrepreneurs and small business owners.

First, entrepreneurs tend to be risk-takers who are always looking for the next big opportunity.

They are constantly innovating and trying to find new ways to grow their businesses.

On the other hand, small business owners tend to be more conservative, focusing on slow and steady growth.

They are also more likely to be involved in the day-to-day operations of their businesses.

The small business owner at one point might have had the entrepreneurial mindset, but as time passes and he or she have achieved the first goals, the will to keep growing might not be the same as in the beginning.

No, not all small business owners are entrepreneurs.

While many small business owners display characteristics commonly associated with entrepreneurship, such as risk-taking and innovation, some may simply be running a family business or working within a franchise system.

To be considered an entrepreneur, one must typically start their own business from scratch and grow it into a successful enterprise.

There is a relation between entrepreneurship and small business, but at some point, having achieved desired profits, minized risks, and having an estable business venture, it will depend on the owner if he or she keeps the motivation to keep up showing up the characteristics of an entrepreneur.

Why is entrepreneurship identified with small business?

There are a few reasons why entrepreneurship is often identified with small businesses.

First, starting a small business is a common way for people to become entrepreneurs.

Second, small businesses are often more nimble and adaptable than larger businesses, which can make them more successful in the long run.

Finally, small businesses typically have a closer relationship with their customers, which can help them build a loyal following.

Entrepreneurship is applicable to small businesses.

Small businesses often need to be more innovative and agile than larger businesses, and entrepreneurship can help them to identify and seize opportunities. Entrepreneurship can also help small businesses to overcome challenges and to grow and scale.

The entrepreneurial skills and knowledge that are being obtained overtime, will help the person to become a successful entrepreneur that eventually will be catalogued in the area of small business or mid size business or at a corporation level owner.

It will be defined by the size of the business, but who starts as a small business is naturally identified as an entrepreneur.

Small business and entrepreneurship overview

There is a common misconception that entrepreneurship is simply opening a small business.

While it is true that many entrepreneurs do start small businesses, there is much more to it than that.

Entrepreneurship is about recognizing an opportunity and creating something new and innovative to take advantage of it.

It requires risk-taking, willingness, creativity, and a lot of hard work.

So, while starting a small business can be a part of entrepreneurship, it is not the whole story.

The entrepreneurial process takes time, and it is a long life journey as long as the business owner wants.

In business, there are not right or wrong answers on how success is measured.

If the entrepreneur decided to start a business with the sole purpose of generating income that can support its family expenses, and if he or she accomplished it, then he is succesful entrepreneur.

But if in the journey he decided to keep the business at a certain level, and he doesn’t want to have the growth mindset and just to maintain the sales levels, that doesn’t neccesarrily erases from the person the abilities of an entrepreneur.

Simply, its focus has changed from a growth mindset to a stable mindset, and he will still be successful if he accomplished that.

 

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