Introduction to Business

Running head: INTRODUCTION TO BUSINESS 1
Introduction to Business
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INTRODUCTION TO BUSINESS 2
Introduction to Business
Entrepreneurship can be described as a process of creating, launching as well as
running a new business. It thus follows that entrepreneurs are individuals who support as
well as create the business. It is, therefore, the capacity as well as willingness to create,
organize, and along with managing a business venture without focusing on the risk to make a
profit. Even though the definition is based on launching and running a business, it has to be
noted that because of the risks involved most of the startups end up closing due to bad
decisions, economic crisis or other factors. Entrepreneurs should not be confused with small
business owners since the two are relatively different even though they all start from a small
business point of view. In this essay, I will use the CEO of Bare Escentuals to demonstrate
the difference between small business owners and entrepreneurs.
Entrepreneur Trait
Entrepreneurs are all individuals who create as well as run a business with little to no
resources and planning hence is responsible for all the rewards along with the risk of the
business. The business concept mainly encompasses a new product line or services with a
new business model. However, there is a small line between an entrepreneur and a small
business owner since they all have many common traits with distinctive differences, setting
them apart.
The difference between the two lies on the fact that small businesses focus on dealing
with known as well as established goods and services. Entrepreneurs, on the other hand,
focus on new business ventures with innovative offerings. It is because of this fact that small
business owners tend to deal with known risks while their counterparts venture in unknown
risks. As a result, the investments are a high investment as well as the scale of business for
entrepreneurs, whereas small business owners invest with lower capitals facing low risks as
well as low scalability.