Relationship between entrepreneurship and small scale business

Differentiate Between an Entrepreneur & a Small Scale Business Owner |

relationship between entrepreneurship and small scale business

To the entrepreneurial novice, being an entrepreneur or a small business owner is interchangeable. However, they are not the same. Sure, they are both. The terms "entrepreneur" and "small business manager" are sometimes used interchangeably, but an entrepreneur plays a different role than a. This essay discusses the concepts of small business and entrepreneurship and relationship between them. We will try to define and explain the.

Management is and should culture bound. The Nigerian managers functions within the Nigerian environment. Nigeria, however, have been described as a Nation where nothing works, the telephone, electricity, water-works, the train the airways and so forth NIM Study Pack: The force of custom, the rigidity of status and the distrust of new ideas and of the exercise of intellectual curiosity, combine to create an atmosphere inimical to experiment and innovation.

In less developed countries traditional attitudes discourage the full utilization of human resources. People are ranked not according to their capacity to do particular jobs but by sex, caste, clan and kinship. Individualistic spirit is absent. People prefer traditional trades and professions rather than venture in new trades. It inhibits the development and acceptance of new ideas and objectives ….

In short, the cultural value system within many poor countries is not favorable to economic development.

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In such economies extreme inequalities in the distribution of income and wealth also stand in the way of the growth of entrepreneurship. Hardly three to five per cent of the people are at the top of the income pyramid who save. They are mostly traders and landlords who do not like to undertake risks in new business ventures but invest in unproductive channels such as gold, jewellery precious stones, idle inventories luxurious real estates, speculation etc.

However, there are some merchants and traders who mostly deal in consumer goods and act as money lenders and real estate agents. Besides, there exist a few entrepreneurs who are engaged in the manufacture of some consumer goods, and in plantations and mines that tend to become monopolistic and quast-monopolistic. They develop personnel and political contacts with the government official, enjoy a privileged position and receive preferential treatment in financial, taxation, exports, imports etc.

Like the South African, government which crested a nation of compliant individuals who depended on the government to control their destiny. The white minority was protected by the government through reserved employment opportunities and laws that prevented black people from participating fully in the economy [ 5 ].

It is they who start new industries and thus, found individual business empires, such as the Tatas, Birlas, and the Dalmias in India: Dangote in Nigeria such big business houses inhibit the growth of fresh entrepreneurship within their respective countries. The thin supply of entrepreneurs in less developed countries is also attributed to the lack of infrastructural facilities which add to the risk and uncertainty of new entrepreneurship.

For example, the indirect costs of doing business are relatively high. It is estimated that the manufacturing sector has to bear additionally indirect costs amounting to 16 percent of sales arising from bottle necks in the business commitment.

Losses due to power enlarges amount to 10 percent of sales and production loss while in transit is 4 per cent of sales. In comparison with other like countries firms in Nigeria face higher indirect costs than firms in other countries.

Such countries lack in properly developed means of transport and communications, cheap and regular power supply, availability of sufficient raw materials, trained labour, well-developed capital and money markets etc. Entrepreneurship is hindered by technological backwardness in less developed countries.

relationship between entrepreneurship and small scale business

This reduces outputs per man and the products are of substandard quality. Such countries do not possess the technical knew-how and capital to evolve their own techniques which may be output-increasing and labour absorbing mostly, they have to depend upon imported capital-intensive techniques which do not fit in their factor endowments.

The process is better described perhaps as one of assimilation. No one would deny, of course, to organize a new industry in a less developed country is an art of entrepreneurial initiative. But it is evidentially very different from the original process of innovation. Thus, the entrepreneur plays a secondary role in less developed countries due to various economic, social and administrative obstacles noted above. The main problem in Less Developed Countries is to create a climate for entrepreneurship.

The creation of such a climate depends on the one hand, on establishing social institutions which make possible objectively the exercise of independent individual enterprises, and on the other, on the maturation and development of personalities whose dominant orientation is in the direction of productivity, working and creative integration Hoselitz.

What's the Difference Between Entrepreneurs & Small Businesses?

The realization of the first condition depends on a series of political acts which include the modification of the social institutions, the protection of property rights efficiently and the maintenance of law and order within the country.

Besides, it requires the establishment of financial institutions which collect savings and canalize them for entrepreneurial activities. To facilitate this process, such financial institutions like the saving banks, investment banks and the complex of brokers, dealers and commercial banks that comprise the capital and money markets are required.

The government should adopt such monetary and fiscal policies which encourage the growth of entrepreneurship. The shortage of skilled personnel of various kinds such as workers, scientists, technicians, managers, administrators etc. It necessitates the setting up of scientific, technological, managerial, research and training and entrepreneurship development institute in every LDC as has been done in India in These invariably have profound effect on motivation and attitudes towards work, towards organization and toward cooperative behaviour.

These deeply rooted ethical loyalties, create a major problem of nepotism in all its forms. In this article the authors try to paint a picture of New Zealand?

relationship between entrepreneurship and small scale business

There were business founders from throughout New Zealand in this survey. The results show that around half of the entrepreneurs had owned another business in the past. Also researches examine who are the? However, an entrepreneur can of course own a large business, but for this sample, only four businesses employed more than full-time staff.

It is important to notice that the primary reasons for respondents, according to the survey, included a desire for independence, to make money, seeing an opportunity, job satisfaction, wanting a challenge, and the desire to be their own boss. The chosen article shows the close connection between small business and entrepreneurship. Although, these terms have many common features, also they have the differences. Mainly, these differences based on motivation for business start-up and future goals.

The purpose here has been to present the connection between entrepreneurship and small business. We has defined these two terms, has provided brief overview on the origin and development of the term?

The article from NZBusiness has been chosen to emphasize that relationship between small business and entrepreneurship very close as well as some existing differences. The role of small business and its relationship with big business. The purpose of this essay is to show the role of small business overall and particularly in New Zealand. Also, it necessary to explain the relationship between small business and big business using the example from the newspaper.

  • The connection between entrepreneurship and small business Essay
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Small business is the most common form of business in New Zealand. Nearly 97 percent of all private enterprises are small and medium sized enterprises, accounting for New Zealand today is a mixed economy in which big businesses co-exist with small ones in most sectors. While small businesses constitute about 97 percent of the business population overall, they are especially dominant in finance and insurance, construction, property and business services and communications sectors.

relationship between entrepreneurship and small scale business

Small businesses do play a number of useful roles in a market economy. Also small firms are more likely to employ less-skilled workers with no prior work experience. This employment practice benefits the economy in two ways. First, these actions provide reducing unemployment. Second, that gives these workers on-the-job training and work experience.

The traditional role of small firms in New Zealand has been to produce parts or components at a lower unit cost than would be possible for large firms, or what large firms either cannot or will not do. Examples include manufacturing customized products such as metal castings for which there is a spesialised demand, offering services such as farm machinery sales and repairs, landscape gardening and hairdressing where personalized attention is required. Small firms seem to be a source of innovation in products, services, and techniques which can form the basis of new industries.

Small business managers face the risk of failure as well, but once the company has achieved certain milestones, the chances of failure are reduced. Small business managers must deal with the pressure of continuing to build the company in the face of ever-increasing competition.

relationship between entrepreneurship and small scale business

Skill Sets Entrepreneurs that are most successful usually possess an unusual vision, the ability to identify what products and services customers will want or need in the future, and designing products or services to meet those needs.

Small business managers who operate established companies do not necessarily need this predictive ability.

relationship between entrepreneurship and small scale business

For example, someone who operates a restaurant franchise needs to be focused on operational efficiency — controlling food and labor cost and maximizing customer satisfaction. Many entrepreneurs manage the big picture such as creating strategies rather than overseeing the completion of the smaller tactics and tasks that must be done to implement the strategies. Small business managers are adept at administration — making sure all of these tasks are completed on schedule and within budget.