There is a misconception that Entrepreneurship and Small Business is the same. As they both are self-employed, it’s become like a popular myth that they are same. Of course, they have lots of similarities.

Just because one run his own business successfully, doesn’t mean he is an entrepreneur. Nowadays the government of different countries put the entrepreneurs in the spotlight.


Entrepreneurs are the pioneers of new civilization. They think from outside the box and make the change. On the other hand, small business owner follows the footsteps of entrepreneurs.

Still couldn’t get it clearly?

Then let’s figure out the facts of Entrepreneurship vs. Small Business. Before everything allow me to make it clear what Entrepreneurship and small business are.


What is Entrepreneurship?

Entrepreneurship is the activity of launching, designing, and running a new business. Initially, it is treated as a small business. Meanwhile, the people who generate businesses are known entrepreneurs.

In a broader sense, an entrepreneur is an entity who can act and find upon opportunities to interpret inventions into new products.  Why entrepreneurship is important to economic development? Well, they can identify the commercial potential and organize the talent, capital other resources into a commercially durable innovation.

There are four types of entrepreneurship. Those are Small Business Entrepreneurship, Large Company Entrepreneurship, Scalable Startup Entrepreneurship, and Social Entrepreneurship.

Characteristics of Entrepreneurship

  • They are innovative and visionary.
  • Entrepreneurs are well informed and confident.
  • They can take risks.
  • More likely open-minded.

What is a Small Business?

A small business is a business whose ownership and control belong to just one or a few people. So we could say Small business is a privately owned sole proprietorship, corporations, and partnership. Usually, they have few employees and less revenue than the regular-sized corporation or business. Therefore, the capital contribution comes from a few individuals.

In many countries, retain operation or service also treat as a small business. It includes restaurants, bakeries or delicatessens, convenience stores.  Also, internet related business like computer programming and web designing are treated as a small business.



Characteristics of Entrepreneurship

  • The sales volume of small business is relatively low.
  • Quite small in size of the business.
  • Employees are also very few.
  • Financial strength is quite weak.

Difference between Small Businesses vs. Entrepreneurship

Small business is more likely the backbone of this country. However, they create different jobs, can create new things. Meanwhile, they keep money in the community as well. That’s why it is said that we have to face a bigger economic mess without small businesses.

There is a big confusion between entrepreneur and small business owner. Meanwhile, both may have the small business. But both have unique styles of leadership for running their business. There could be a debate, which one is better. But they are just different. Let’s see why we are saying this.

Motive and vision

When you asked a small business owner, what is the core motive of your business? I am sure you the answer must be like making money. More than anything, they want to earn the profit. Probably they risk is too much. At anyhow they want to avoid losses.

On the other hand, entrepreneur dedicates fully to what they passionate about. The main difference is they start up a business with love. At the same time, they are not afraid of taking the risk as they are devoted so much. As a result, they become successful.


Entrepreneur literally invents new things as well as develops it. On the other hand, the small business owner will go for that what successful entrepreneurs have already done.

Why business owner do that? Because it doesn’t have taken any risks with it. Their minds are technically opposed to entrepreneurs. In a word, entrepreneurs are proactive and small business owners are reactive.


The main reason for this confusion of entrepreneur and the small business owner is both are self-employed. But then what is the difference?

Well, it the behaviors or how they react. Entrepreneurs want to change and make a new one. On the other hand, the small business owner only trusts in success and profit. They want more comfort.


There are around 29.6 million small businesses in the United States. Fifty-seven percent of Americans find suitable opportunities around them to start a new business. That’s why they can make a big difference than other world’s other 26 innovation-driven economies.

When we consider the relationship between small business and entrepreneurship, we see a big difference in the Mindsets of them.

Small business owner and entrepreneurs have different mindsets. How? While entrepreneurs will jump for the next big venture, small business owners will remain at their business.

Market Share

Entrepreneurs have the vision to help the world. As a result, their businesses have a huge impact on many people. For example- Google is serving everybody in the world. Therefore, they have a remarkable market share.

On the other hand, small business owner targets small community. As they serve just people around them, they got a small market share. It brings a big difference in market share between small business and entrepreneurs.

Similarities between Entrepreneurship and Small Business Ownership

Though entrepreneurs and small business owner are different in many aspects, there are some similarities also. The similarities are vision, risk, and execution. Let’s focus on similarities between entrepreneurs and small businesses.

  • First and foremost, both face the shortage of funds. Hence, they don’t have enough money to start. Therefore, both have to be innovative and creative to achieve the position.
  • Secondly, they don’t find enough resources to start and develop their ideas. Thanks to new technology and shareable resources nowadays.
  • Thirdly, both have to compete with the market and industry leaders.

Final word

To sum up the difference between Entrepreneurship vs. Small Business, we could say it is undeniable that both begun their journey: vision. And, the enthusiasm of them is awesome.

Whatever the difference, they both have a great impact on our economy. More than anything, most entrepreneurs start from humble beginnings just as small businesses.