Introduction to Entrepreneurship

Entrepreneurship means creating new businesses or solutions by combining ideas, resources and effort. An entrepreneur is someone who starts and runs a business using their own ideas and time, taking on financial risk to bring products or services to market. In other words, entrepreneurs spot opportunities and organize resources around them to solve problems or meet needs. 

Entrepreneurship differs from simply owning a small business. A small business is generally a privately owned company with limited size and scope. Small businesses may be run by one family or a few people, and they often serve a local market. For example, running a neighborhood shop or a small farm is usually a small business. In contrast, entrepreneurs often aim for rapid growth and innovation. As Investopedia notes, an entrepreneur “takes on financial risk” and often invests their own time and money to build something new. Small business owners may focus on steady profits and stability, whereas entrepreneurs focus on expanding and scaling their venture. In practice, entrepreneurs are more willing to incorporate their firms, seek outside funding, and innovate, while small business owners may keep things modest. In short, all entrepreneurs can run a small business, but not all small business owners act like entrepreneurs.