Small Business Vs Entrepreneurship

[gggreen]

Many people use the terms "entrepreneur" and "small business owner" synonymously. While they may have much in common, there are significant differences between the entrepreneurial venture and the small business. Entrepreneurial ventures differ from small businesses in these ways:

1.

Amount of wealth creation - rather than simply generating an income stream that replaces traditional employment, a successful entrepreneurial venture creates substantial wealth, typically in excess of several million dollars of profit.

2.

Speed of wealth creation - while a successful small business can generate several million dollars of profit over a lifetime, entrepreneurial wealth creation often is rapid; for example, within 5 years.

3.

Risk - the risk of an entrepreneurial venture must be high; otherwise, with the incentive of sure profits many entrepreneurs would be pursuing the idea and the opportunity no longer would exist.

4.

Innovation - entrepreneurship often involves substantial innovation beyond what a small business might exhibit. This innovation gives the venture the competitive advantage that results in wealth creation. The innovation may be in the product or service itself, or in the business processes used to deliver it.



Kindly post your reviews/comments

[chrispalko]

en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture.

So, I minimize my risk, and I haven't gotten rich quick. This means I'm not an entrepreneur?

I'm just trying to figure out what makes your definition more credible than a dictionary.

Interesting article, nonetheless.

[leggomygreggo]

I really don't agree with alot of what you are saying. If you create a small business then you are an entrepreneur. Like the definition above states, ANY PERSON who organizes, operates, and assumes the risk for a business venture is an entrepreneur.

Its very fallicious to say that the speed at which an "entrepreneur" makes his/her millions is typically 5 years. Those people that start little mom and pop stores, i doubt some of them ever make over a million but that doesn't make them any less of an entrepreneur than say Donald Trump.

And the risk of an entrepreneur absolutely does not have to high. Risk comes from not knowing what you are doing. (Courtesy of Warren Buffet) A smart entrepreneur will find ways to minimize risk and increase his chances of success.

I'm sorry to say but practically everything you have stated is just not true.

[businesgoonline]

entrepreneur is a person who organize and run a series of businesses in different venture.

Business owner is a person who own a business and only focus until the end.

Please correct me if i am wrong.