Differences Between Entrepeneur and Small Businesses

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According to Albert Shapero, an entrepreneur is someone who takes initiative, accepts risk of failure and has an internal locus of control. He is a person who started a new business where there was none before. The definition of small businesses varies worldwide. Small businesses are normally private owned corporations, partnerships, or sole proprietors whose tax policy and government support varies also by country and by industry. There are several differences between an entrepreneur and small businesses in strategic management system. A small business requires skilled management to become successful. However considering the size and nature of the enterprise, the entrepreneur and the manager may be the same person. In most cases there are no skills needed to be an entrepreneur. The manager in a small business has to be competent and more involved in the daily running of the business unit. In strategic management system, a small business requires a manager with expertise in their field of business however an entrepreneur does not have to have the knowhow to venture into a business, he is a risk taker. In a small business the manager may need to have a degree in a certain field of expertise but an entrepreneur can be anyone with the ability to start a business and develop it. In a strategic management system, the leadership skills differ between an entrepreneurs and small businesses. Leadership skills can be in communication, motivation, delegation and encouraging efficiency among subordinates. An entrepreneur can be a sole trader and may not employ others in his business and may hence not need to possess good leadership skills. In contrast, small businesses need a manager in charge of running the business, and this usually involves the need to manage a staff of employees. Amount of wealth creation in a strategic management system differs for small businesses and
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