Difference Between Entrepreneurship and Small business Management

Entrepreneurship and Small Business is the heart of every business. Every large company starts with a small business. A small business enterprise like tech startups requires skilled management in order to be successful.

With time there has been a shift in most economies away from manufacturing towards the service sectors where small firms like Tech Startups News often flourish because of their ability to deliver a personalized, flexible, tailor-made service at a local level.

A few aspects on which entrepreneurship and small business can be compared are:

1.   Leadership: An entrepreneur is an owner who does not employ others in its business, so might not need to possess strong leadership skills. A small business enterprise manager usually manages a staff of employees or maybe an in charge of a business operation. On the hand, an entrepreneur faces the challenge of ensuring the profitability of her operation while effectively leading a group of workers.

   

   

   Focus: Entrepreneurship requires a business owner to look at the overview pertaining to his business, which may include seeking new markets, establishing important contacts through networking and planning for future expansion. Small business management is more focused on the day-to-day operations of the business such as dealing with customers, ordering supplies or overseeing production. In other words, entrepreneurship involves developing the plan while management involves the execution of the plan.

3  Risk: The very nature of entrepreneurship requires the desire to take the risk. An entrepreneur is the risk taker and may be the prime investor into the business who consequently has to suffer the consequences if the business fails. On the other hand, small business management usually escapes taking risks and often involves in minimizing the risk once it presents itself. A small business enterprise limits expenses to ensure maximum profitability. Entrepreneurship often welcomes risk, while business management practices require an aversion to risk.