I like this question because I never compare the meaning behind these two terms. Entrepreneur and small business have many similar characteristics, yet they are still different.
Here is list of characteristics that help us to see the differences between them,
1. Risk – Small business tends to have known and established product and services which means less risk, Entrepreneur tends to have higher risk product and services because they are brand new and not established before
2. Return – Higher risk means higher return, entrepreneur tends to attract venture capital and expect to have massive return, small business usually starts within family and friends and expect to have certain growth and return
3. Innovation – Entrepreneur tends to sell more innovative products or services, small business tends to sell products and services that already exist in the market
4. Way of problem solving – small business sells things that you need, entrepreneur sells things that you want
If I start another company, I won’t expect to be in full control, I would definitely choose to delegate my work and duty to people that I trust. A wonderful team makes a company perfect instead of one person.
The most important growth issues entrepreneurial companies will face are these two,
1. Productivity – A company has to be willing to keep making big changes in order to increase their productivity, and it is not easy at all to make these changes
2. Management – Managers determine whether the company will grow and grow in the right way
In general, entrepreneurs sell innovative products and services, face unknown risk and aim for rapid growth and huge return, they sell things that you want in the near future or now that didn’t have a strong present in the market yet and take the world to next level.
Really like the way you pointed out difference between small business owner and entrepreneur.
I agree that Risk is the main factor that differentiate entrepreneur. They are willing to take risk for higher return, and that is why a lot of entrepreneurs succeed and grow while the small business remain the same.
I believe that entrepreneurs see the opportunities and potential that other people miss or tend to ignore. I think that not being ignorant in the business word is the key for entrepreneurs to achieve their goals.
nice post!
just let me say something about the return defition, I think higher risk doesnt mean higher return, that would be to easy for entrepreneurs and investors.. In my opinion higher risks means higher potential returns but also higher potencial losses.
like the way you organized the post!
I love your blog’s name!
I feel you have a very clear cut of the two in your mind. Can you apply your standards to your own business (the express company right? Please forgive me if I’m wrong)? Do you think you are an entrepreneur?
Follow up question on the control issue: who will you trust or how can people get your trust?
Do you think small businesses will also face the growth issues you proposed?
Awesome Post!
I also believe the higher the risk the better the return. It is a great way to bet on yourself and hope that you or your company can benefit from it.
Very straight and too the point.
Great post!
Productivity and Management are definitely two important growth issues entrepreneurial companies will have to face. For example, being able to adapt and make changes according to customer’s demand will improve productivity. I also think that a company not only must adapt but also innovate in order to grow, and you made these points very clear. Entrepreneurs are characterized for being risk takers and creative people, and these qualities must be present in a business owner in order to continue succeeding in the business world.