Characteristics Of Small Business

Definitions of entrepreneurship almost always involve the risk taking within the business world. Businessdictionary.com states “The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.” Why we want individuals to create new companies or even to grow products and ideas within an existing company is beyond the scope of this paper be we are going to assume that over all the outcome of this behavior is good for the organization, community, or country. There is little dispute that the United States was known for this behavior over the last two hundred years and it may be something that we are starting to lose. At least it is a behavior that we want to continue to foster.

There are more than four million small business organisations all over the UK and they are contributing half of the UK’s GDP and UK’s employment. Hence, marketing for small businesses is seemed to be neglected (Department for Business Innovation and Skills, 2012).

According to Reece and O’ Grady (1987), average person uses a small business to refer to an owner-managed business that only employs people not more than twenty or twenty five. The major reason for going into business for one’s self is the desire to be one’s own boss. Working capital, the money necessary to find he business regular operations. Also, the key element in defining an entrepreneur is that they take risks. Each year, a million or so people balance the rewards and the risks of

Millions of Americans dream of starting their own small business; a prospect as exciting as it is frightening. Failure rates among small businesses are extremely high, though the thrill of big rewards vs. big risks continues to attract an increasing number of entrepreneurs each year.

Entrepreneurship can have multiple meanings. Business daily consider it to be a business ventures that shares a commitment to turning an idea into a profitable business (Fernandes, 2016). Bruce Bachenheimer, a clinical professor of management and executive director at Pace university also mentioned "At its core, it is a mind-set, a way of thinking and acting. It is about imagining new ways to solve problems and create value." (Fernandes, 2016). I couldn’t have agreed any more as anyone can come up with an idea but implementing it to produce change in the world is where the real work starts.

The existing literature on entrepreneurship stems from economical conceptual frameworks developed in the early twentieth century by Schumpeter, Cole, Kirzner among others. Fayolle (2014) notes that entrepreneurship has gained considerable study

Entrepreneurship is related with the capability of recognition and evaluation of opportunities, allocation of resources and growth. Moreover, entrepreneurship has been taken as an organisational notion that contains three magnitudes: Modernisation, Bear risks and Practical alignment. It has been confirmed that the companies that were engaged in entrepreneurial activities are now most successful and efficient.

An entrepreneur is someone who starts a new company to produce a product or service. An entrepreneur is usually a risk taker and an opportunist. Entrepreneurship is a positive change in our society. Entrepreneurship is combined with land, labour, resources and capital in order to make a profit.

Thesis Statement: The economy is for ever changing toward what has control of demands, the environment of entrepreneurship is high on the charts, however the small business are surviving equally with the large businesses.

Small businesses have gained steadily more importance after they started to rise in the mid1990s. They are characterised by a high chance of entrepreneurial risk; their link is inborn and cannot be rid of; however, small firms are steadily progressing and acquiring a noteworthy role in nowadays society. These types of businesses are particularly significant for the global economy and for the commercial flow; “they are known by governments worldwide for their contribution to the economic stability and growth, employment and new job creation and social cohesion and development” (Morrison et al, 2003). For instance, according to Delephanty, in the US small business employs almost half workforce of the country and creates two-thirds of all net new jobs; that’s why small businesses have a major importance worldwide (2015). In 2007, the number of small businesses in the UK was up to 4,6 million and they contributed to almost 50% of employment (BERR, 2008). There are several elements that help the entrepreneur determine the success or the failure of SBs; they distinguished between internal and external factors. Their importance can be denoted by the way they influence the progress of the company.

Entrepreneuring: efforts to bring about new economic, social, institutional, and cultural environments through the actions of an individual or group of individuals → emancipatory process with broad change potential. This view foregrounds three aspects: (1) seeking autonomy, (2) authoring, and (3) making declarations.

Small businesses are essential for the growth of any economy since they are considered as building blocks. They can be equated to stem cells in the human body that have the ability to self-generate and differentiate into various structural forms. Small businesses can be established to cut across industries, countries, and communities. One of the primary roles of small businesses is the creation of employment for large numbers of people in society. In the United States (US), small businesses are estimated to create jobs for approximately 64 percent of the population with most of them having less than 500 employees. In other countries like Australia, small businesses are classified as those having less than 20 employees.

There have been dozens of definitions of entrepreneurship. The first of those is the phenomenon that some people, rather than working for somebody else under an employment contract, strike out on their own and become self-employed. These economic entities involve some element of innovation at start-up, and some degree of innovativeness is needed to survive over time. However, innovation is not central to this phenomenon. It is to the second social reality. This reality involves the development and renewal of any society, economy or organization, which is based on micro-level actors who have the initiative and persistence to make change happen. In this reality, ‘entrepreneurship’ means the creation of new economic activities and organizations as well as the transformation of existing ones .

-According to Skinner SJ and Ivancevich JM,” An entrepreneur is a person who takes the risks necessary to organize and manage a business and receives the financial profits and monetary rewards”

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.