Introduction to entrepreneurship/IENT101/Small business/Define

What is a small business?

Let's have a look at some definitions:

• Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation.
• A privately-owned and operated business with relatively small turnover and staff numbers, typically seen as constituting part of a specific commercial or economic sector.
• Firms of a certain size which fall below certain criteria (that varies from country to country) in terms of annual turnover, number of employees, total value of assets, etc.
• A small business is one that is independently owned and operated, exerts little influence in its industry, and (with a few exceptions) has fewer than five hundred employees.

So the definitions allow for a wide variety of businesses to be defined as small businesses, and criteria vary from one country to another.

Is a small business owner an entrepreneur?

Is every small business owner an entrepreneur and vice versa?

Read this short article which outlines the differences. Remember don't skip the readings, they are a required part of the course.

• Are You a Small-Business Owner or an Entrepreneur? The Difference Is Important.

WEnote

Let us know what you think of the article by posting a WEnote below, for example:

• For me, the difference is ...
• I was surprised to read that ...

Post your comment(s) below and then look on the course feed page to see what others have posted.

If you prefer you can create a post on your learning journal blog. Be sure to label or tag your post IENT101.
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References