No Longer is a Brick and Mortar Business or Office Space Needed
An entrepreneur's organization can be small and differ from a typical small business in the following ways.
An area where an entrepreneur's organization can differ from a typical small business is in the handling of funds.
Small businesses will often have a financial officer or accountant (bookkeeper) who is directly in charge of income statements, balance sheets, etc.
In an entrepreneurship, often the individual will be responsible for managing the cash flow and day to day funds needed to operate business.
In the text book, the author spoke of misuse of funds:
Many unsuccessful entrepreneurs blame their failure on inadequate financial resources. Yet failure due to a lack of financial resources doesn’t necessarily indicate a real lack of money; it could mean a failure to use the available money properly.
An entrepreneur's ability to manage the finances of their company is paramount. Whether it is managing the balance sheet themselves, or being able to quarterly review and verify information of a hired bookkeeper, will go a long way to a successful entrepreneurship.
The habit of co-mingling funds is another form of misuse and poor financial management, many entrepreneurs are roadblocked by. The need to establish separate and itemized business accounts, will go a long way towards entrepreneurs managing their finances in ways that grow their businesses.
Another difference between a small business and an entrepreneur's organization can be the struggle to delegate. Often an entrepreneur labels themselves a "jack of all trade" which often works to their disadvantage.
The textbook pointed out that many entrepreneurs struggle with delegating tasks to other people, even when the employee or assistant is more than capable. An entrepreneurship demands that a team is built around the vision and goal of the entrepreneur, while he or she manages the implementation and execution of their planning.
Identifying the person who would provide the highest quality of work within a team format, often produces greater results than an entrepreneur who can multitask, but cannot delegate.
Small businesses generally do not like surprises and they remain rather small throughout their lifespan. Many times a small business owner will purposefully keep their business model and vision something smaller and more manageable. They are able to maximize their specialty in a way that provides them more control over products and services. Quality control and customer experience are aspects small businesses leverage in a competitive market.
An entrepreneurs vision and plans for growth will often differ from a small business ownership. Where a small business looks to manage internally, and entrepreneur will aim to expand the organization, as you've stated.
Continuing to innovate new ideas, products, and services that impacts a greater percentage of a marketplace, is a key difference when comparing the two styles of business management.
Limited resources within a small business does promote efficiency and cost cutting practices.
There is an avoidance to expansion and experimenting with varied business approaches, in a small business.
Risk avoidance is also a symptom of limited human resources. Most small businesses are limited to the community of people in the region or city of operation. If the company demands to operate do not meet the skillset of the community, the quality of work within the small business suffers. The small business owner also is restricted with leveraging its staff to make risk tolerant business decisions.
Entrepreneurships focusing more on new and innovative ideas.
In today’s marketplace, an entrepreneur has even greater flexibility to create radical products and services, due to an entrepreneurs ability to leverage software to execute tasks previously requiring human resources.
A good example of this is online entrepreneurship.
An entrepreneur online in a global digital marketplace, can innovate a new product, test, and launch a business idea from seed to profitable company, while leveraging software to do market research, competitive analysis, sales, customer management, accounting, and advertising. All in automated formats from an IPhone. This was all previously reliant on human resources.
No longer is a brick and mortar store or office space needed for an entrepreneurship to go from idea to a store front.
With the help of a virtual assistant, an online entrepreneur can reach a global marketplace without ever having to pay outrageous rent, lease an office space, worry about employment insurance and taxes, while getting a new entrepreneurial venture off of the ground.