Is small business entrepreneurship a type of entrepreneurship and role of small business in entrepreneurship?
Most often, the types of entrepreneurship are broken into four categories: small business and scalable startups and large company or intrapreneurship. Entrepreneurs are the founders and creators of new products or services, while small business owners start a type of business that already exists within the marketplace. Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business. An entrepreneur is “a person who organizes and operates a business or businesses, taking on greater than normal financial risks to do so.” An entrepreneur can focus more on independence and innovation than a small business owner. By creating new products and services, they stimulate new employment, which ultimately results in the acceleration of economic development. After agriculture, small businesses are the second largest employment provider in the Indian economy. In comparison to big corporations, small businesses generate the most number of employment opportunities per unit of capital invested. Therefore, they are the second largest generators of employment in human resource. Small scale industries contribute to around 40% of the total exports done by India, which forms a significant part of the revenue earned from the exports. Small scale industries work towards increasing the forex reserves of the country that reduces the load on balance of payment of the country. Small businesses play a crucial economic role in creating job opportunities, fostering innovation, and promoting local economic growth. They contribute significantly to a country's overall economic growth and stability despite their size. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. Small-scale businesses are, therefore, set up all over the country, many of them providing employment opportunities to people in rural areas. This triggers the redistribution of wealth and income and enables the equitable distribution of income in rural areas.
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