Entrepreneurship is the creation of a business from a new idea that people were not used to before.The idea tries to capture a new niche.
The person involved in the creation of this business is known as an entrepreneur. Traditionally, they are involved in acquiring, organizing and rewarding the various factors of production such as labor, land and capital. The ensures that the business process run smoothly.
The businesses of this kind are given a special name called entrepreneurial/entrepreneurship ventures or businesses.
The main target of classical entrepreneurship is the great reward that come as a result of massive expansion, due to the innovative and hardworking nature of the entrepreneur. It is important to note that classical entrepreneurial ventures have to bear a lot of risks in the course of their operation.
Most classical entrepreneurial ventures start small and with time, finance and hard work they expand to become very large business ventures. Some may even become multinational businesses.
Businesses created by classical entrepreneurship play a very big role in the economy. These roles may include: creation of employment, development of infrastructure, development of technology as well as improving the entrepreneurial and hard working culture in the country.
For proper development of a classical entrepreneurship venture, a classical entrepreneur has to be hard working, committed, innovative, sensitive to customers needs, take measurable risks and be goal/result oriented.
In the last decade, however, a new type of entrepreneur has appeared. These new entrepreneurs are not interested in creating a multi – national company: these are businesses whose scale of operation is limited. They are based on existing models that are known to work. This means that these businesses are based on simple ideas that are already tried and tested.
Since these businesses mainly remain small, they may not have such a significant influence in the economy of a country or nation like the classical entrepreneurial ventures. However, they can have a huge impact in the life of the modern entrepreneur, giving him a lot of freedom and money.
Most of the small businesses following this model are based on the Internet.
What are the differences and similarities between classical entrepreneurship and small businesses? Let’s take a look at them.
Similarities between entrepreneurship and small businesses
1) Both avail goods and services in the economy.
2) They both provide an alternative to employment.
3) They can both contribute to the development of infrastructure and technology.
Differences between entrepreneurship and small businesses
1) Classical entrepreneurial ventures have a very big impact in the economy since most of the successful ones expand and may even become multinationals. On the other hands small businesses only have a small effect that is confined only to a specific locality or area, although with the rapid expansion of the Internet, this is also changing.
2) Classical entrepreneurship kind of businesses are made up of large risk takers who may delve into the business world of unknown. With great risks comes great rewards. Small businesses owners usually prefer to implement only tried and tested ideas and may not take such large risks which may come with uncertainties.
With the rise of the Internet, more and more people are choosing to start their own small business. Are you going to be one of them?