What is the difference between an entrepreneur and a small business owner/manager?


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  • This topic has 35 replies, 9 voices, and was last updated 4 years ago by Anonymous.
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  • #41297
    Anonymous

    I believe that the key to entrepreneurship is original thought and innovation. I have attached a copy of the Burch graphic file. I have also attached a copy of a Word document with my updated contribution to Burch. This is a work in progress and contains some placements which are wrong. however it is relevant to this topic. I believe that entrepreneurship is a scaled concept, but unlike Burch i do not believe everyone to be entrepreneurial just on a different scale. I believe there is a cutoff point which would separate entrepreneurs from those who are not. I am writing a journal article on this topic and will advise when published (if lucky 🙂 )

    Chris van Zyl said:

    To spot an opportunity where an existing business model (as per franchise) provides profit-making ability, is not necessarily less entrepreneurial than when you start an enterprise from scratch?

    Dr Rob Smorfitt said:

    The original meaning of the word was a description of a person who borrowed money to transact, with the clear intent of repaying the loan with interest and keeping the profit. The entrepreneur carried the risk and identified the opportunity. Early explorers such as Vasco da Gama could very well be described as entrepreneurs who borrowed to transact in the Far East.

    I do not believe franchisees have this same “drive”. If they were truly entrepreneurial would they not launch their own franchise? Look at the Burch continuum, which requires some updating i believe.

    Rob
    Chris van Zyl said:

    Well, according some classical definitions of what entrepreneurs are: pro-active; innovative & with a risk-taking propensity, one could accept that even some (or most) franchisees could be categorised as entrepreneurs. Yet the definitions and conceptualisations of what entrepreneurship really is, seems to be wide-ranging?!
    #41296
    Anonymous

    I think that therein lies the challenge. i have no doubt that there are many many people who are survivalists. They are business owners because they are unemployed and/or unemployable. I believe the skills required by entrepreneurs and by non-entrepreneurs are different, albeit that they do overlap, as do all businesses. However, the losers i think are the non-entrepreneurs who are receiving training at a level that is beyond them, with no net improvement for them.

    However until this topic is debated to some conclusion the process will continue unchanged.

    sylvia hammond said:

    Evening Chris & Rob – what do you think of the new logo for the group?
    I have an idea for discussion in this group. While as academics and HR people we might theorise about the profiles most appropriate for the SME owner, but in reality in our SA context (not that we are unique) many people have started businesses as a matter of necessity. I recall a statistic that 80% of businesses are SMEs – and I believe that a large proportion of those are family businesses. I’m not sure if my statistics are correct, but the question is: given that large numbers of people – without ideal SME profiles – are running these businesses, how do we go about proving appropriate skills development for that sector?
    #41295

    Entrepreneurs change peoples’ worlds. For example, Bill Gates completely changed mine with the services he provides and the inventor of the internet.

    #41294
    Skills Universe
    Keymaster

    If I go back to very long time ago while still studying the definition of an entrepreneur was given to me as on the one hand a person of very high aptitude who pioneers change and only a limited few individuals really possess that characteristic. On the other hand just someone who wants to work for himself.

    Schumpeter’s model suggests that the difference between the two can be summarised in four characteristics:

    1. Amount of wealth creation.
    2. Speed of wealth creation.
    3. Risk taken.
    4. Innovation.

    This clearly shows that franchise holders only qualify as business owners.

    #43529
    Skills Universe
    Keymaster

    If I go back to very long time ago while still studying the definition of an entrepreneur was given to me as on the one hand a person of very high aptitude who pioneers change and only a limited few individuals really possess that characteristic. On the other hand just someone who wants to work for himself.

    Schumpeter’s model suggests that the difference between the two can be summarised in four characteristics:

    1. Amount of wealth creation.
    2. Speed of wealth creation.
    3. Risk taken.
    4. Innovation.

    This clearly shows that franchise holders only qualify as business owners.

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