Entrepreneurship and Small Business Management

Introduction

Entrepreneurship can be defined as the process of creation of an enterprise that is comprised of such components as the actor’s skills and capabilities, as well as the obstacles and difficulties he or she needs to overcome; in turn, the result of this entrepreneurial activity is an enterprise, or a business organization (Saviou 65). Intrapreneurs can be defined as the entrepreneurs who function within a larger organization and thus attract less attention; compared to entrepreneurs, they pay more attention to communications, agility, and culture; whereas the former focus mainly on time and financial management, and access to resources (Bulca).

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The Typology of Entrepreneurship

The major orientation of growth firms is the multiplication of profit and expansion, lifestyle businesses tend to keep steady revenue without rapid growth (“Growth vs. Lifestyle Businesses”). In the public sector context, entrepreneurship is recognized as directed at the acquisition and implementation of new and innovative practices improving the existing services; in the corporate sector, the innovation tends to target the maximization of profit (Matthews 2). Micro, small and medium-sized organizations have a major purpose of the creation of jobs and the facilitation of economic growth

Social Enterprise

Social entrepreneurs and enterprises are mission-oriented organizations targeting social issues. Moreover, in a marketplace, the most resourceful social entrepreneurs are the ones who put their accessed resources to the best use; the growth of social enterprises is accomplished through the attraction of such resources as labor, capital, materials, and equipment (Dees)

Where Entrepreneurial Ideas Come From

Creativity represents the new approaches and strategies in a particular field that have not been used before. The main source of such strategies is located where the goal of a business is – social issues, customers’ preferences, and needs, environmental or economic problems. Businesses need to protect their unique ideas and recipes; for that, they could use patents, trademarks, copyright, or store the information in secrecy protected physically or digitally.

The Role and Importance of Small Firms

Out of all the employer businesses registered in the USA by 2012, over 89% were small businesses with no more than twenty employees; additionally, 10% is represented by businesses with a few hundred workers (SBE Council). The global statistics are similar as 90% of all employer businesses worldwide are characterized as small (Gasiorowski-Denis).

Factors to Consider

Not all countries offer favorable conditions for the growth of small enterprises. A sustainable small business requires a balance of profit and taxation, access to the necessary resources, and growth opportunities.

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International Aspects of Entrepreneurship

Internationally, some of the countries create better conditions for business start-ups to attract investment and human capital.

Entrepreneurial Characteristics and Mindset

There exist several different theories as to the personal factors that make good entrepreneurs. Trait theory states that entrepreneurs have a set of necessary traits with which they are born; developmental theories maintain that the skills and features of an entrepreneur can be learned by anyone. There is no fixed answer to this argument.

Skills Set of the Entrepreneur

Entrepreneurs are the leaders of their organizations. In this way, the differences between them and the organization managers are based on the contrasting goals and tasks of managers and leaders. In particular, the latter are visionaries who show the way and see the bigger picture, while the former are followers and executives focused on internal tasks and operations.

Personal Entrepreneurial Tendency

Personal drivers play a significant role in the making of an entrepreneur. However, the individuals successful or simply willing to start businesses usually come from the environments and backgrounds where they learned about growth opportunities and self-actualization. The individuals who come from individualist and capitalist cultures are more likely to become entrepreneurs due to the values and focus dominantly in their environments.

The Factors that Influence the Decision to start a Business

Some personal factors for the entrepreneurs are presented by the types of families they come from; usually, those are the families where there already is entrepreneurial history. Wealthier families produce more entrepreneurs than those with a lower income. The personality traits common for entrepreneurs include dedication, determination, persistence, and goal orientation. In socialist cultures, it is more difficult for the people to develop the entrepreneurial mentality since it requires a portion of individualism and a desire to stand apart or be in charge of an individual enterprise.

The Risks and Rewards of Business Start-up

Starting and maintaining a business can be difficult and exhausting. Many business people fail to develop their first businesses; such failures usually result in the loss of capital and investment and the need to start from the very beginning trying to create another enterprise. However, a successful business can be rather rewarding as after a while it begins to generate significant profit without as much effort. Also, businesses can facilitate change and impact societies. Risks and uncertainties in business development are mitigated through regular supervision, testing, and monitoring, as well as the involvement of skilled professionals and optimized operations.

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Works Cited

Bulca, Ferhan. “Similarities and Differences Between Entrepreneurial and Intrapreneurial Initiatives.” Concept to Market, Web.

Dees, Gregory J. “The Meaning of “Social Entrepreneurship.” Duke, 2017. Web.

Gasiorowski-Denis, Elizabeth. “The big business of small companies.” ISO, Web.

“Growth vs. Lifestyle Businesses.” The University of Tennessee, Web.

Matthews, Judy. “Entrepreneurship in public sector: new possibilities?” QUT,  Web.

Saviou, Gheorghe. “Enterprise, Entrepreneur, and Entrepreneurship – the Main Semantic Chin in Contemporary Economics.” OAJI, Web.

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SBE Council. “Small Business Facts & Data.” SBECouncil, Web.

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