8/3/2019 What Do We Mean by Small Business

1/4

Assignment

# 2

January 31

2012Maria Jahangir 07105007Samina Rafiq 07105001

Mohammd Asif 07105005

Zahid Mushtaq 091088138

Submit to: MrShoaib

Mohammad

8/3/2019 What Do We Mean by Small Business

2/4

Assignment # 2 January 31, 2012

2

Small Business and Entrepreneurship

Question:

What do we mean by small business?

Any independent owned and operated business that is not dominant in its completive area and

does not employ more than 500 people.

Some examples of small businesses are Printers, Fax machine, copiers, voice mail, Computer

bulletin board and networks, cellular phones and even overnight delivery services. In additional

small businesses are largely responsible for fueling job creation and innovation. Small business

also provides opportunities for minorities and women to succeed in business. Small business is

vital to economy because they provide products, jobs innovation and opportunities. Retailing,

wholesaling, services, manufacturing, and high technology attract small businesses theseindustries are relatively easy to enter require relatively low initial financing and may experience

less heavy competition.

Advantages and disadvantages of small business:

Small business offers some personal advantages, including independence, freedom of choice and

the option of working at home. Business advantages include flexibility, the ability to focus on a

few key customers and the chance to develop a reputation for quality and service.

Small business has many disadvantages such as expanse, physical and psychological stress, and a

high failure rate. Small business fails for many reasons: undercapitalization, management

inexperience or incompetence, neglect, disproportionate burdens imposed by government

regulation, and vulnerability to competition from large companies.

If you go about starting a small business first you must have an idea for developing a small

business. Next you need to devise a business plan to guide planning and development of the

business. Then you must decide what form of business ownership to use and sole proprietorship,

partnership, or corporation.

8/3/2019 What Do We Mean by Small Business

3/4

Assignment # 2 January 31, 2012

3

Entrepreneurship:

Entrepreneurship is a process of creating and managing a business to achieve desired objectives.

Difference Between a small business and Entrepreneurship:

Small business and Entrepreneurship both kinds of entrepreneurs take risks, true, but on closer

check up they are very much difference kinds of risks, and those difference reflect very much

difference perspectives and approaches to most of the fundamental aspects of starting drawing

and managing a business.

Entrepreneurship is quite different from small business in the following ways

Innovation:This is the very implement of entrepreneurship. It provides resources with a new power to create

wealth. Entrepreneurship frequently engages general innovation further than what a small

business might show.

Risk:Risk must be usually high in an entrepreneurial scheme. If not with the invitation of sure profits,

many entrepreneurs would be trailing the idea and the opportunity would no longer exist.

Amount of wealth creation:A booming entrepreneurial risk generates substantial wealth, normally in excess of several

million dollars of profit rather than simply generating an income stream that replaces fixed

employment.

Speed of wealth creationA successful small business can make quite a lot of profit over a lifetime. But for an

entrepreneur, wealth creation often is fast and speedy, for example, within 5 years. Also, the

types of business they are engaged in are what basically differentiate entrepreneur activities.

Innovation is the key. Every entrepreneur should rely greatly on this. Innovation can be

emphasized on the following:

- new organization

- new products

- new markets

- new production methods

8/3/2019 What Do We Mean by Small Business

4/4

Assignment # 2 January 31, 2012

4

Leadership Skills

An entrepreneur is often a sole proprietor who does not employ others in her business, so he/shemight not need to possess strong leadership skills. A small business manager is typically in

charge of running a business operation, which may involve the need to manage a staff ofemployees. The entrepreneur who is also a manager faces the challenge of ensuring the

profitability of his/her operation while effectively leading a group of workers.

ConclusionSo the main differences between entrepreneurship and small business are that the entrepreneur

takes a risk and hits the ground running with the goal of in need of attention. Whereas the small

business generally starts smaller, with less risk and the income and success builds over timeunder very controlled planning.