Entrepreneurship & Small Business

The present study has been undertaken with a view to providing information and analysis on differences between owners of small business firms and entrepreneurial corporations. There are a lot of distinctions between them, yet in many aspects, they are similar to each other. This report is an attempt to shed light on the same. Another part of the report is where profiling and comparison between two contrasting entrepreneurs - Steve Jobs of Apple and Sir Richard Branson, owner of the Virgin Group- is made.

ASSIGNMENT 1

Business firms are of many types, and for the economy of a region, they are of extreme importance, because of the fact that they contribute in great numbers to the overall development. Authorities and the government of the country must pay a lot of attention to ensure that the business houses get a conducive environment, where not only can they flourish, but also help society in general (Lloyd and Woodside, 2013). In this regard, it can be said that business owners also play a very vital role in such a process. But it is also very much important to note that they are generally of two types - small business owners and 'the entrepreneurs'.

Difference between small business owners and entrepreneurs

There are a lot of differences and distinctions between the two of them. Such owners differ in many terms from one another. One of the major points of comparison between them is that entrepreneurs are characterized as risk takers while owners of business firms are not. It can better be understood through the titles that they get (Marks, 2013). On one hand, entrepreneurs are also known as individuals who tend to bring innovation and inventive products or goods to the market. But 'owners' do not do so. Herein it may not be wrong to say that this difference arises because of the inherent traits and characteristics that they possess. Entrepreneurs like to do experiments with their surroundings, but 'owners' of business firms are not interested in such activities. It can be explained through an example that Bill Gates is an entrepreneur because he was one of the first few persons, who looked to bring computers right into the homes of normal people and turn them into personal computers (Bolton and Thompson, 2013). He had the vision, an aim in his mind, and a passion to make it a reality. While businesses believe in going about their work and not experimenting with the surroundings. They do not like too many changes. 

There is another point of difference between the two of them as well. It can be understood through the fact that entrepreneurs see their company as an asset through which dreams can be realized. They believe that it is something that can be shaped, developed, and made market-ready. According to them, a company can be sold when it is at the maturity stage and at its peak in terms of performance (Carter and Jones-Evans, 2006). This is the step that has to be carried out, so as to shift their attention towards the next big project. On the other hand owners of business firms are more sentimental to their organization, meaning that there are very less chances that they might look to sell it in the market. They are of the opinion that business is a part of their family, as many a time it has been seen that such firms are the result of a long lineage of history. The main motto of entrepreneurs is to bring revolution in the market, the process of which may entail that profits may have to be forgone. They give more importance to passion rather than to income and profits. However, this is not the case with business owners, as they are more practical in nature and the main purpose of running a business is to make money (Carlad and et. al, 2004).

Similarities between Entrepreneurs and Small Business Owners

Many times it has been seen that people interchangeably use the terms Entrepreneurs and Small Business Owners (SBOs). This at a general level indicates that even after so many differences, there are some common points related to both of them. One of the common points is that sometimes the entrepreneur may want to keep the business or family that he is running in the family itself. This would mean that they might not sell the company no matter how lucrative the price or compensation they may be getting for it (Britton, 2007). There are a lot many examples of such persons or individuals in the market. For instance, Mukesh and Anil Ambani, owners of the Reliance Group are some of the world's renowned entrepreneurs but have chosen not to sell their company in the market (Sexton and Upton, 2000). Other than this there are some functions which are important to be carried out, like managing the human resources, developing marketing strategies, and implementing them. There is another aspect to it as well which states that entrepreneurs and SBOs are pretty much similar on the platform that they want the needs of customers to be satisfied and thus try to create a stir in the market (Martiono and Barbato, 2003). Both of them try their best so as to be able to stay for a longer term in the industry and also attempt to win the trust of the customers and also make a unique image in the market. This very concept can be supported through the example of a not-for-profit organization.

These are such organizations whose main motive is to provide the best services to customers or clients and try to take of their health-related problems. This is the place where there is no or very little difference between an entrepreneur and an owner of a small business (Cater and et. al, 2006). In this regard, it may not be wrong to say that a businessman who owns and runs a firm that takes care of the health of the community, for free; and an NGO, headed by an entrepreneur - have the same objective or target that they would want to attain. In contrast to profit-based organizations, there is no difference between the two individuals; who head a corporation. This is so mainly because of the reason that such firms' agenda or portfolio includes that they not only provide health-related services to people but also work in favor of upliftment of the society and work for the betterment of it (Gaspraski and et. al, 2011). One of the major concepts that is used here is that both the entrepreneur and business owner have to work for the upliftment and betterment of the overall society. Both of them have to design their products and services in such a manner that they can take care of the people near them and also assist them in providing a healthy and fit lifestyle.

Apart from being the head of not-for-profit organizations, they also have to put in extra effort in terms that they would have to analyze and evaluate the needs of the customers. This is work that an individual has to do regardless of whether he is an entrepreneur or owner of a small business organization (Bates, 2000). This is the foundation stone on which the future of both the product as well as the corporation is dependent. They both tend to strive for the same thing, which is to help people and provide them with much effective lifestyle by taking care of the negatives that may be happening around them like some sort of disease or bad effects of a natural disaster. Additionally, both of them also have to search and arrange for necessary finances and funds, as it is the only source through which they can plan and carry out the various activities. If the necessary fundings are not arranged for, then there is no way that they can take care of the society in which they are operating (Storey, 2000).

Another element that is very common to both of them is that they have to start with a vision. This is the first step towards the establishment of an empire or rather a business organization. Studies, along with many authors have stated that without a clear vision, neither an entrepreneur nor a businessman can start a firm, even if it is on a very small scale (Rauch and Frese, 2007).

ASSIGNMENT 2

Today there are numerous entrepreneurs and business leaders in the world because of this the marketplace has become highly competitive. Two individuals who have revolutionized the industry that they operated in - Steve Jobs, co-founder of Apple Inc., and Sir Richard Branson - founder and owner of the Virgin Group.

Steve Jobs

Steve Jobs, the American entrepreneur, was born in 1955 in San Francisco, USA. His journey of becoming an innovator of international stature started when he founded Apple along with his friend and another co-founder Steve Wozniak in the garage of his house (Isaacson, 2011). Slowly he and the company began to get recognition as a great organization to work with. The products initially that they offered in the market - the circuit boards were the beginning of the time when Steve Jobs and the company made inroads into the computer and technology industry. Many people have recognized him as an individual who thinks very far ahead and has great ideas. Right from the beginning he had a very clear goal in his mind - to revolutionize the whole computer industry and bring these machines into every house possible in the country. This very idea at that time was considered to be very vague and many even considered it to be impossible because of the presence of giants such as IBM and Xerox in the market. Steve Jobs wanted Apple to acquire the top spot in this industry and it also to become a giant. By this, it can be seen that Steve Jobs was an individual who not only wanted to be the best, as well as a pioneer. Herein it can be noted that one of the major tasks that Steve Jobs did to make the company a giant of the industry was to envision (Elliott and Simon, 2011). He foresaw the future, which enabled him to go all out for the activities he wanted to do to make the firm an industry leader. The event that led to Jobs seeing the dream to establish a company so as to beat the industry giant was a result of the success they achieved by selling 'blue boxes', a machine through which long-distance calling could be made much simpler. 

Apple Computer Company was established in 1976. It was not Jobs who invented the Apple I computer, rather it was Wozniak. But to vision and determination of Jobs helped them in selling it and gaining a good reputation in the market. It can be supported by the fact that they got good reviews from many industry experts, like Scott McNealy, co-founder of Sun Microsystems (Blumenthal, 2012). He said that Jobs had been able to do what others could only have dreamed of for the industry. Basically what he meant to say was that Jobs together with Wozniak and Ronald Wayne was able to bring computers right into the homes of people.

Sir Richard Branson

Another entrepreneur who is world famous and one of the best innovators in his area of expertise is Sir Richard Branson, born in 1950 (Dearlove, 2007). Right from the early age of 16, he has been an entrepreneur, as at that time he started his first business venture, a magazine. After which there has been no turnaround for him. But the real work as an entrepreneur started in 1984 when he formed Virgin Atlantic Airways and Virgin Mobile in 1999. Herein it may not be wrong to say that Richard was an individual who right from a very early age initiated to become an entrepreneur (Jackson, 1998). Many authors and experts have cited that the main reason which contributed to the success of Branson was that he always had a vision and wanted to do something that was unique and different. This led him to start The Student magazine when he was 16 years old. The success that he gained in this business led him to start another business. It was related to selling records at a very cheap price (Fertig, 2013). Due to this reason, he was able to create a stir in the market and make inroads into the industry. There are a lot many reasons that have contributed to the success of Virgin Group and Richard Branson. One major factor is of fact that he started by selling music records at a very low price. But later on he started an airline company under the name of Virgin Airlines and a telecommunications company in the year 1999. After this, there was no looking back for the entrepreneur as he gained immense popularity and went on to become one of the most popular innovators in the industries in which he operated. Branson is also known as an individual with an image of 'larger than life'. Due to such reasons, he has been very controversial. He owns a lot many companies under the name of Virgin Group. One of the highlights of this group is the F1 Racing Team (Branson, 2002).

Comparison between the two entrepreneurs

Steve Jobs and Richard Branson are two entrepreneurs who have changed the whole industries that they operated in. Both of them have been identified as persons who brought a revolution in the business world and changed the whole ball game. In this regard, it may not be wrong to say that there are a lot of differences and distinctions between the two of them but also some similarities exist (Branson, 2013).

Steve Jobs is accorded for changing the computer industry and that too by a big margin, as he brought computers into the homes of the general public. There are a lot many factors which aided him to rise to great heights. One of the main factors is that he envisioned a future that no other person at that time had even thought of. His ability to think far ahead in the future also was of great help. On the other hand, Richard Branson was a born entrepreneur as he started different business ventures right from a very young age (Darling, Gabrielsson and Seristö, 2007). His very first business was that of a student's magazine which brought him a lot of popularity.

There are a lot many factors that set the two entrepreneurs apart from one another. Leadership style is one of them. On one hand, there was Steve Jobs who used to shout at the employees and not give them room to which they can perform the tasks in a much more effective manner. Authors and HR experts have cited that his style of leading people was more autocratic in nature. He did not allow the employees to think on their own or make decisions; rather all such power was kept with higher management and himself. There were a lot of bad effects it to the company as many individuals left the organization, some were frustrated and unhappy (Bendisch, Larsen, and Trueman, 2013). But the main reason as to why he behaved in such a manner can be understood through the fact that he always was very particular about tasks that he wanted to do and the dream as well.

In contrast to it, leadership style that Richard Branson had was democratic. The reason behind this is that he treated the employees as assets of the company and aimed to retain them for the long term. Through this style, he was always available for staff members and listened to the ideas and suggestions that they gave (Beverland, 2006). It can be proved through fact that the name of his company was opined by one of the early employees of Virgin Group. This style had its own benefits as well, one of them is that members of the workforce were allowed time so that they could carry out assignments given to them in an effective manner and thus contribute to organizational goals & targets.

Delegation is another factor that was not common between them. Steve Jobs did not give the employees any kind of power to effectively carry out the tasks, nor did he delegate or distribute responsibilities between them. There is an instance where Steve Jobs used to shout at the employees and did not allow them any kind of free or leisure time. On the other hand, Richard Branson believed in empowering the employees, as he allowed them to make decisions that were in favor of the company. This proved to be very helpful and effective (Bowman and Bowman, 2012).

Steve Jobs, as his former employees and teammates describe was never satisfied with anything. He focused a lot on perfection. During the time when the iPod was being developed, employees used to find it very hard to convince and satisfy Jobs, as he never appreciated how well the efforts were turning into reality (Kubin, 2011). While Richard Branson is the complete opposite of it. He, as recalled by many employees tends to appreciate and acknowledge efforts that people put into completing a task given to them.

Key Similarities between Steve Jobs and Richard Branson

Even though there are a lot many stark differences between Steve Jobs and Richard Branson, both of them, in many areas are similar to one another (Thomas and Wilson, 2009). They both had a dreams and did a lot of hard work to achieve them. Revolutionizing the industries is one such area which is common to both of them. Steve Jobs wanted to revolutionize the computer industry, while Richard Branson looked to bring innovations into mobile and also to change the airline market. This fact can supported by the fact that Branson in the initial phase of his career used to sell records at a very low price which enabled him to do the same for the aviation and telecommunications industry as well (Bendisch, Larsen and Trueman, 2013). Similarly, Steve Jobs was looking to make computers so small that they could be used by normal households as well and not just by big companies. This vision of his, though was very difficult to achieve, but his steely determination and uncompromising attitude helped. Richard Branson though did not pay any attention to perfection, but paid emphasis on making sure that the products are of the best quality and that they are able to meet the needs and wants of target customers. For both of them, attaining the vision was of utmost importance, as their major focus was on developing ways through which it could be done. Another point that was common to both of them is belief (Fleck, Michel, and Zeitoum, 2014). This faith in abilities turned out to be the pivoting point that assisted and motivated them to fulfill their dreams.

CONCLUSION

Entrepreneurship is very important for a region or a country, mainly because of the reason that they contribute by a big margin to the economy. Similarly, owners of small businesses also play a very crucial role. The present report was divided into two segments - Assignment 1 and Assignment 2. The first part of the assignment discussed about differences and similarities between entrepreneurs and small business owners. During the analysis, it was seen that there are many points that are different and similar. One area in which they differ by a big margin is the ability to take risks. On one hand, entrepreneurs like to take risks, but businessmen do not tend to be involved in such activities. While they are similar on aspect that both have to carry out and develop different strategies and also implement them at the workplace.

The other section of the report focused on comparing two entrepreneurs Steve Jobs and Sir Richard Branson were taken into consideration. It was observed that Jobs was more autocratic in nature; while Branson used a democratic leadership style. The similarity between them was that they both had the vision to make their organizations giants of the market. Further for them, their dream was of great importance.

REFERENCES

Books & Journals

Jackson, T., 1998. Richard Branson, Virgin King: Inside Richard Branson's Business Empire. Crown Publishing Group.
Dearlove, D., 2007. Business the Richard Branson Way: 10 Secrets of the World's Greatest Brand Builder. 3Rd ed. John Wiley & Sons.
Fertig, D., 2013. Richard Branson. Raintree.
Branson, R., 2002. Sir Richard Branson: The Autobiography: Level 6. Longman.
Bowman, C. and Bowman, S., 2012. No More Business As Usual. LifeMastry Pyt Ltd.

You May Like to Read

• Effective Analysis of Brand Value Reception of an Organization
• BMT7345 Research Method For Business Assignment Level 5

UPTO55%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit