Question

Hi Tutor, nice to meet you. This is the task B of my (Entreprenuership and small business )assignment which is also divide into two parts.

BExplore the similarities and differences between entrepreneurial ventures

Part 1 -What are the Roles and characteristics of micro, small and medium-sized organisations?

Please, help me answer this Part1 questions accurately with reference. Thanks Tutor.

Answer 1

- The entrepreneurship and small business while have many things in common, they also have a lot of differences in terms of their objectives & the style of their functionings. Let us discuss some of these step by step & separately.

1. Enterpreneurship -

• They are new to the market & the main goal of these are to capture or exploit as much of the new opportunities as possible.
• Main objective is high profit generation by employing new strategies which were never seen before & bold steps.
• They are courageous to go the extra mile & take risk.
• They have small initial investment & capital, out of that they aspire to utilize the maximum. They don't have time for wastage & also they have too limited resources to waste.
• The survival traits require them to be independently self motivated & high in energy.

2. Small Business -

• They are conventional in their way of functioning & their primary motive is to sustain in highly competitive market & make a very long term presence in market.
• They are calm & systematic, do whatever is assigned to them on time and their daily goals are completing their regular work correctly.
• They do not take much risk or go outside their comfortability zone, instead they go by predefined system operating principles ( SOP).
• As they are quite old to the market & know better about the local market constraints than its enterpreneural counterpart, they general take risk against wastage of its resources & capital.
• They also have different divisions to manage and assign capital, technologies & workforce to various functions.

- The Micro, Small & Medium enterprises have their image as not the high profit generating firms, rather they are the ones those are seeking for the survival in highly competitive market filled with big business giants.

- MSME's have a very crucial role to play in the growing economy of any country , mainly the developing countries.

- They are the backbone of any economy due to their presence in very large numbers.

- They require small capital to start the business, also they operate with small manpower.

- They largely contribute towards the total export of any country

- As a result of the government initiatives like Digitalisation , Made in home country & start up plans which are also supported & partially financed by them. This is encouraging more of like them to come up.