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Small business is defined as an organization with less than 500 employees that attempts to earn a profit with the sale of goods or services.
A small business:
IN CONTEXT
Who is the Small Business Administration, anyway? Well, you can find them at sba.gov, and they provide financial and organizational help to small businesses from around the country. They've helped provide long-term loans for start-up costs, expansion costs, and operating costs. They also provide organizational help in the form of how to determine the most advantageous way to set a business up, in order to decrease the chances of that business becoming one of the statistics by lasting less than two years.
They also provide advice and help on getting, bidding and winning government contracts as a separate avenue of revenue for the small business. They provide advocacy to Congress, meaning they are the government's advocacy group for small business. They understand the value of it, and they want to make sure that small business survives.
The entrepreneur is defined as a person who pursues a business venture with growth and expansion as a primary goal.
As you can imagine, being a small business person and being an entrepreneur are similar in various ways, and they're also pretty different.
Small Business and Entrepreneurs | |
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Similarities | Differences |
Profit-oriented; the reason they got in the business in the first place is to help generate profit for that business. | Entrepreneurs think of growth; not the same with all small business owners. |
Entrepreneur | Business | Story |
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Mark Zuckerberg | In order for Mark Zuckerburg to take Facebook from a small computer program in his Harvard dorm to a multinational, publicly owned and publicly traded company took a lot of vision. He had to have a specific plan in mind in order to get there. That's a very large step. | |
Sam Walton | Walmart | Sam Walton started a Five and Dime store in Bentonville, Arkansas. When he closed that Five and Dime store and opened what we now know as Walmart in 1963, his goal was to provide retail access to underserved communities, those communities between the big cities. His goal was to open as many of these Walmarts as possible. From 1963, when Walmart was opened, to the early 1970s, when the company went public, they grew dramatically, and today they're one of the largest retailers in the world. |
Source: ADAPTED FROM SOPHIA INSTRUCTOR JAMES HOWARD