The differences between the small business manager and entrepreneur
- An entrepreneur is a person who takes advantage of an opportunity and assumes the risk involved in creating a business for the purpose of making a profit. A small business manager is involved in the day-to-day operation of an established business. Each faces significant challenges, but they are at different stages of development in the entrepreneurship and small business management model.
The steps in preparing for small business ownership
- The entrepreneurship process involves an innovative idea for a new product, process, or service. Implementation is the stage at which the entrepreneur forms a business management process is growth, which usually means the business is becoming large enough to generate enough profit to support itself and its owner. The maturity stage is reached when the business is stable and well established.
The advantages and disadvantages of self-employment
- The advantages of self-employment include the opportunity for independence, the chance for a better lifestyle, and potential for significant profit. The disadvantages include the personal liability you would face should the business fail, the uncertainty of an income, and the long working hours.
The characteristics of the forms of small business ownership
- There are several choices for the form of ownership of your small business. The most common is the sole proprietorship. If you choose a partnership, you have the choice of a general partnership, in which all partners are fully liable for the business, or a limited partnership, in which at least one partner retains unlimited liability. A corporation offers its owners limited liability. In forming a corporation, you are creating a legal entity that has the same rights as a person. Variations of corporations include S corporations, limited-liability companies, and nonprofit corporation.
- My View: The importance of a business organziational structure constructs a hierarchical system to be implemented into the organization to make its operation more efficient and productive. One bad example is I used to work for acompany with 300 employee. The organization structure involved a chain of 36 Vice President who makes the decisions and accountabled for various duties. Due to the high cash burn rate and poor organizational structure, it turned company into ashes with a few years.
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