Small Business vs Entrepreneurs
Small Business vs Entrepreneurs
Small Business vs Entrepreneurs
What were the basic parts of the Ball of Risk (4) we discussed in the last class and how do they apply to separating out Entrepreneurs from Small Business persons? Think back to the video for some ideas about who is and is not an entrepreneur. (hint: challenge, learning, innovation and growth)
To many people, the word entrepreneurial and small businesses have been used interchangeably without making any reference to the differences that exist between the two. Although the two are involved in business there are a number of differences between the two. Basically referred to as the ball of risk, there are four main factors that differentiate an entrepreneur from a small business. One of the most prominent distinguishing factors between an entrepreneur and a business is innovation. Entrepreneurs prefer creating activities which are manifested by innovative combinations that will assist in making more profit. Unlike a small business which replicated business ideas that have been practiced by other people and which has a limited expansion, an entrepreneur is involved in innovative activities that leads to development of new line of business which continually grows. (Carland et al., 1984)
The other factor that separate between the two is learning. An entrepreneur will be involved in continuous learning in order to get new ideas for business. An entrepreneur will be looking to learn more in order to connect different ideas that can lead to development of a new business. On the other hand a small business is more than satisfied with the basic book keeping skills that have been learned. Lack of interest in learning makes it difficult to operation small businesses a many of them end up collapsing.
The third factor is challenge. In our life not may people who like to be challenged. But for a successful person, success comes from overcoming a myriad of challenges in life. It is the same for an entrepreneur. An entrepreneur will get involved in a challenge that most people are avoiding so long as at the end they are likely to get profit from this challenge. The success for an entrepreneur comes from the way they get overcome these challenges. The hunger for success enables entrepreneurs to overcome different hurdles on their way. On the other hand, most small business operators are likely to run away from the challenges on their way.
The last factor which differentiates between the two is growth. A small business may remain stagnant for a long time. This is because they are satisfied with the nature and are not involved in activities that may stimulate their growth. On the other hand entrepreneurs are likely to record higher growth in a short period of time since they are determined to record higher growth. Compared to small businesses, entrepreneurs will grow and expand very fast.
What role does "faith" play in deciding the difference between Small Business owners and Entrepreneurs? You might consider what each has faith in the scope of that faith.
Faith is an important virtue in our life. Faith moves us a long way to overcome some to the most devastating effects that we think we would have never overcome. In business faith is also a virtue that plays crucial role. In essence, the concept of risk in business is based on faith. When a business person buys the merchandise, they have full faith that their merchandise will be purchased and they are going to make profit. In other words, what we can refer to as optimistic faith is what drives our business forward.
Faith is another important factor that can differentiate between an entrepreneur and a small business. Since they are all in business, we can say that they have a degree of faith in their operation. However, the scope of their faith varies greatly. For a small business, their fear of risk of loss may confine them to their small operation for a long time. We may call it fear in our explanation but in essences it is the lack of faith in their operations. On the other hands, entrepreneurs have a lot of faith in their operation and they are assured that not matter what circumstances, they are going to make it through. This faith assists them to invest even in risk situation where not many people would be wiling to invest. It is this faith that helps them to overcome most hurdles on their way.
Find and discuss two other articles (use Google or Google Scholar) where this idea of a difference is discussed. List their arguments first and then your reactions to each.
There are a number of researchers who have also documented a great deal of difference between entrepreneur and business owns. Wagener et al., (2001) assert the entrepreneurs are the real business owners. From their study they found out that entrepreneurs were more independent, had a higher tolerance of ambiguity, had a higher risk taking prospects, and had more leadership attributes. However, they did not posses marketing oriented and self-efficacy attributes that were found in small business owners. On the other hand, small business performance well at consumer contact level but were devoid of innovativeness and risk taking.
On the other hand, Williams (2007) assert that there are several characters that set aside entrepreneurs from small business owners. Entrepreneurs tend to create a business that support their own talent and passions in life which is the main reason why they are likely to success more than small business owners who just get into business because there are individuals in that business. Unlike the small business owners, entrepreneur follows their inner calling and they have more purposes in business than just making money. From time to time, entrepreneurs keep on evolving their business fueling their inspiration.
From the article that we have reviewed, it is very clear that there are major difference between entrepreneurs and small business owners. I feel that these differences should exist and the factor that we have used to differentiation between that two are factual and they hold their ground. This is because in the business world we can apply all these factors in order to understand the difference between real entrepreneurs and small business owners.
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