Entrepreneurship Vs Small Business Essay

Introduction

Entrepreneurship plays a vital role in the economic growth and social stability of a country. Countries that are still developing are faced with a massive challenge of high unemployment among the youth especial the university graduates, due to lack of work experience. Not only do entrepreneur solve the issue of unemployment by providing job to communities, they create business locally, they invest and giving back to the communities they operate in. Because entrepreneur businesses are profit orientated, capital invested and creates jobs, governments in most countries have implemented strategies that aim to promote and nurture entrepreneurs.

But before government can implement policies that promote entrepreneurship, they first need to understand the difference between entrepreneur business owner and small business owner. An entrepreneur is described as someone who exercise initiative by organising a venture to take the benefits of an opportunity

For an entrepreneur to be able to sell their product or service they’ll need to start a business or buy an existing one. There are many different types of business structures to choose from. The business type to choose from depends on the entrepreneurs’ personal circumstances, interests and, finance and business objective. Below is an insight into the types of business structures an entrepreneur can choose from.

1. Sole Proprietor

A sole proprietorship or sole trader is business that is owned and operated by one individual. This is regarded as the simplest form of business entity. Only the owner has the authority to make the decision for the business. This is popular form of business due to its simplicity, easy to start and cost required. The owner sign business contracts in they are own name, because it has not separate identity under the