To what extent is the enterpreneurship activity the domain of small businesses - Essay Example

It is in this appetite for spotting the opportunity and taking the risk that makes small businesses more flexible and versatile in nature and thus good enough to make them capable to convert a business idea into the process of business creation thus innovativeness and creativity are two landmarks of the people who run the small businesses. 1 The term small business is very loosely described and discussed. One idea suggests that a small business is any business which is not large and has very small number of employees.

Though the requirement for the number of employees may vary from country to country according to the legal framework of that country however the European Union standards suggest that any business with less than 50 employees is categorized as small business. (Wikipedia, 2008). Generally these businesses are privately owned sole proprietorships or partnership firms. The nature of these firms may be limited to an institution which is limited to the management of the owner or partner of the firm and there is no separation of the ownership and the firm thus the entrepreneurs who run the show at the show at these small businesses are at highest risk of personal liability.

(Osborn,1951). Entrepreneurship and Small Businesses Previously, it was believed that since entrepreneurship denotes the creation of some contribution that did not previously exist, entrepreneurship therefore was largely equated with the small business, ownership and management. Due to this overleaping of the concepts entrepreneurship is often interlinked with the small businesses. (Carland et al, 1984).In this essay, we will also use the entrepreneurship and small businesses interchangeably. Further, this essay will look into some of the factors which allow the owners of these small businesses to tap the opportunities and convert them into