Entrepreneurship vs. Small Business Management

 



Entrepreneurship vs. Small Business Management

Entrepreneurship:

  • Definition: Entrepreneurship involves the process of creating, launching, and scaling new business ventures. It focuses on innovation, identifying market opportunities, and developing new products or services.

  • Characteristics:

    • High Risk: Entrepreneurs often take significant risks to bring their ideas to market.

    • Innovation: Central to entrepreneurship is the creation of new and unique offerings.

    • Growth-Oriented: Entrepreneurs typically aim for rapid expansion and scalability.

    • Funding: Often requires external funding from investors or venture capitalists.

  • Example: A tech startup developing a new app that revolutionizes how people connect socially.

Small Business Management:

  • Definition: Small business management involves operating and maintaining a business that is typically localized and serves a specific market. It focuses on sustaining operations, managing daily activities, and ensuring profitability.

  • Characteristics:

    • Lower Risk: Generally, involves more stable and predictable business models.

    • Established Market: Often operates in existing markets with known demand.

    • Sustainability: Focuses on steady growth and long-term viability.

    • Self-Funding: Usually funded through personal savings, small loans, or reinvested profits.

  • Example: A family-owned bakery that caters to the local community with fresh, handmade goods.

References

  • Kuratko, D. F. (2016). Entrepreneurship: Theory, Process, and Practice (10th ed.). Mason, OH: Cengage Learning.

  • Scarborough, N. M. (2016). Essentials of Entrepreneurship and Small Business Management (8th ed.). Boston, MA: Pearson

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