Small Business vs. Entrepreneurship
Small Businesses
Small businesses have limited operations. they deal with established products and services and aim for limited growth with continued profitability. They deal mostly with known risks and focus on a limited area. According to the industrial enterprise Act 1992, a business with a capital of less than so million is termed as a small business.
Entrepreneurship
Entrepreneurship involves purposeful and systematic innovation. Risk bearing is another basic element of entrepreneurship. Entrepreneurship aims rapid growth of business with high productivity and focuses on a large area.
Difference between Small Businesses and Entrepreneurship
| Bases of difference | Small Businesses | Entrepreneurship |
|---|---|---|
| 1. Dealing | They deal with established products and services. | They deal with new innovative offerings. |
| 2. Aim | They aim at limited growth with continued profitability. | They aim rapid growth with high productivity. |
| 3. Nature of risk | Small business deal mostly with known risks. | Entrepreneurs also deal with unknown risks. |
| 4. Focus | They focus on a limited area. | They focus on a large area. |
| 5. Ability | They lack analytical and predictive ability. | They have analytical and predictive ability. |
| 6. Reward | Small business owners are not rewarded publicly for their efforts. | Entrepreneurs are rewarded publicly for their efforts.. |
| 7. Employment | They usually employ less number of people.. | They employ a large number of people. |
