What is the difference between an entrepreneurial project and a small business? 4 Differences Between Entrepreneurship and Small Business

You may not know much about the difference between an entrepreneurial project and a small project, or you may think that there is no difference between them. In fact, I do not blame you much, as many people do not know the difference between an entrepreneurial project and a traditional small project. In this article, we will explain to you the difference between the two, and how distinct they are.

What is a startup?

When you are looking for the difference between an entrepreneurial project and a small project, you are looking for the meaning of an entrepreneurial project. This is because we all know what traditional small projects are. When we see someone opening a company to sell home appliances or a student delivery service, this is considered a traditional small project. Traditional means that it does not come up with anything new, as both provide a service or offer a product that others have already provided. This is simply the most important thing that distinguishes the difference between an entrepreneurial project and a small project. You can read the article Main Activities of an Entrepreneurial Project (3 Stages with a Detailed Explanation of Each Stage).

An entrepreneurial project is an innovative idea that its owner seeks to transform into a business model that will revolutionize the markets. The entrepreneurial project aims for rapid growth in the markets and expects the highest percentage of returns. Its owner is also an ambitious person who believes in his idea and strives to achieve the highest return from it. Do you think that when Jarrett Camp and his friend Kalanick founded Uber, they did not want to make a quick profit?!

“Look at a traditional delivery service and Uber, what’s the difference?”

Characteristics of an entrepreneurial project

Before we explain in detail the difference between an entrepreneurial project and a small project, we must know the characteristics of an entrepreneurial project that distinguish it from other small projects. For your project to become an entrepreneurial project, it must contain these characteristics:

First, innovation and creativity: the most important thing that distinguishes an entrepreneurial project from a small project

What does it mean to be an entrepreneur? It means that you are an innovative person who has come up with a new idea that no one else has. An entrepreneurial project is built on a new, innovative idea. It could be a service that makes people’s lives easier, a unique product that can solve a problem, or add a new feature. What do you think of online stores that you can shop from without leaving your couch? Learn more about the opportunities of an entrepreneurial project and the benefits it provides (Top 5 Opportunities).

Secondly, providing added value to the community:

The entrepreneurial project does not only meet people’s needs, but it also adds value to them that makes it easier for them to get what they want. If you live in America and need to rent an apartment, all you have to do is enter the Airbnb application and indicate the apartment that suits you. However, if you feel hungry, there is no need to get up from your place to go to a restaurant, but it is enough for you to press the button for the food delivery service numbers to the house. In the article, the two most famous tools for analyzing the entrepreneurial project, learn about them in detail, and you will learn more about how to give added value to society. And what is meant by a startup project or a small project in the upcoming differences?

The difference between a pioneering project and a small project

1- Growth objectives: One of the most important differences between a pioneering project and a small project

Entrepreneurial projects focus on expanding and expanding in markets and making huge profits at a rapid pace. Look at Facebook, Google, WhatsApp, and many companies that quickly made a boom in the global market, and made millions in profits. In contrast, small projects are looking for long-term growth, which ensures stability in the market. Learn about the article Competitor analysis for your business. Study the project’s superiority over the 4 most important competitors .

2- The business strategy that differentiates between a pioneering project and a small project.

Steve Blank, one of the most prominent pioneers of Silicon Valley, defines an entrepreneurial project as a temporary company that aims to find a repeatable and scalable business model. One of the differences between an entrepreneurial project and a small project is that the entrepreneurial project can be expanded and developed. The entrepreneur does not aim to be his boss but rather aspires from the first day to control the entire market. A small project according to the US Small Business Administration: is a business owned and operated independently and organized for profit, and is not dominant in its field.

An entrepreneur feels that he has an idea that can shake up the markets and attract many customers and clients. As for the small business owner, he creates his project believing that he is providing a service or filling a gap in the current market. You can view a marketing plan from scratch 0 – How to promote your entrepreneurial project step by step.

3- Financing:

At first, there is no difference between a pioneering project and a small project in terms of financing methods, as each of them depends either on the savings of its owner, or resorting to taking bank loans. However, the chances of financing the pioneering project increase the more successful it is in the market. When it succeeds, it gains more financing opportunities through investors who try to invest their money in promising projects. Learn about the article on the costs of establishing and operating a pioneering project and sales expectations of close to 100%.

If luck finds him, he can make money through an initial public offering on the stock exchange and financial markets. With each funding round, the founder gives up part of the ownership of the funded project, until the entrepreneurial project ends as an independent entity through mergers and acquisitions. This is what Steve Blank referred to in his definition of the entrepreneurial project as a temporary company. An example of this is WhatsApp, which was acquired by Facebook. You can learn about economic feasibility, its importance, criteria, and characteristics – 5 steps to implement it.

4- Risk:

As usual with bold ideas, there must be risk involved. The risk ratio in an entrepreneurial project is higher than in a small project. The difference between an entrepreneurial project and a small project is that the entrepreneur believes that his idea will cause a boom in the market and bring him huge returns. But in reality, this does not happen all the time, so investing your time and money in an entrepreneurial project may be considered a big risk. This does not mean that small projects are free of risks. However, failure is often due to weak cash flow management, in addition to weak financing. In the end, the risks of a small project are less than those faced by an entrepreneurial project. Know your customer segments – the basis of any 100% successful business project and a strong competitive plan.

Types of entrepreneurial projects

Many people think that the term entrepreneurship refers to one type of business venture. However, in reality, there is more than one type of business that falls under the name of entrepreneurial ventures.

1- Social Entrepreneurship (Non-Profit)

This type of entrepreneurship is created with the aim of solving social problems such as obtaining food, and money, and providing good education. Although the stated goal of this type of project is to provide a better social life, in the end, everyone seeks profit and make money. These companies develop services and products until they reach their noble goals. This type of entrepreneurship is called non-profit organizations, as these companies seek to increase community awareness.

An example of this type is Seventh Generation, which sells environmentally friendly cleaning and personal care products. The company was founded in 1988 to preserve the environment. In addition to reducing the damage caused by consuming products containing chemicals, which were widespread at the time. This company allocates 10% of its pre-tax profits to donate to non-profit organizations and companies that focus on society and the environment. It may seem to you at first glance that these companies do not receive a return or profit margin, but in fact, these companies can achieve good returns. This is proven by Seventh Generation’s revenue of $200 million in 2015.

2- Innovative entrepreneurship

The idea of innovation is the most distinctive feature of entrepreneurship, especially those related to inventions and new ideas. When you look for the difference between a pioneering project and a small project, you find that the most distinctive feature between them is innovation and the creation of ideas. The most important goal of entrepreneurship is to make a difference in people’s lives by introducing products and service ideas that contribute to facilitating human life. This, of course, comes through offering services that other companies have not offered. This type of entrepreneurship is characterized by ambition as it requires large investments to get started. For more, read the article on pioneering projects and 7 steps towards making glory and reaching the top.

Examples of entrepreneurial projects include Tesla, an electric car company founded in 2003. Tesla was based on the idea of manufacturing a range of electric cars and offering them at reasonable prices. Although Tesla entered the global market in 2004, it did not achieve tangible success until 2019, when reports were received that the company sold 367,849 units worldwide, an increase of about 50% over the previous year. To this day, Tesla is still unable to afford to produce cars suitable for the working class, with prices starting at $36,000.

Continuous innovation can lead to lower prices, which allows Tesla cars to be widely distributed. This is one of the most important steps in establishing an entrepreneurial project and the main difference between entrepreneurship and small projects within the blog of the innovation platform for cloud and social management of entrepreneurial projects.

3- Big Entrepreneurship

One of the drawbacks of growing a company is that it moves slowly. This is why some large companies start a startup by acquiring small companies and delegating their innovation to them. These companies use their expertise and technological advances to develop a limited service or product. Companies like Google and Microsoft are examples of this approach, buying a small developer with promising technology as part of a long-term focus.

An example of great entrepreneurship is the Walt Disney Company, which was in partnership with Pixar Studios, which produces animated films. In one of the largest purchases, Disney bought Pixar Studios in 2006. Pixar has won 19 Academy Awards through its famous films that achieved wide success.

4- Scalable Entrepreneurship

Steve Blank says that scalable entrepreneurship begins with the belief that you have an idea that will make a difference in the world. Venture capitalists fund this type of entrepreneurship in the hope of generating huge returns. An example of scalable entrepreneurship is Uber, which has made a difference in the taxi market. After attracting investment, Uber was able to gain a huge market share in a very short time. The number of active customers who use Uber every month is about 150 million customers. We are pleased to inform you about the article How to Find a Startup Project that Opens up Horizons for a Bright Future and 6 points for managing startup projects.

5- Small business entrepreneurship

Unlike scalable entrepreneurial projects, small entrepreneurial projects are characterized by a lack of innovative ideas. This is due to the limited resources that force the owner of the small entrepreneurial project to be more conservative in spending and expanding production. Also, these projects are often established by families or friends, and the profits from them are used to support their owners and are not often used to expand production or develop services. Examples of small entrepreneurial projects are what we see around us daily from grocery stores, cafes, or even chain stores and restaurants that appreciate new ideas and products. All of these projects fall under the name of small entrepreneurial projects, which represent the largest percentage of spread in the markets among other entrepreneurial projects.

What is the difference between a small business owner and an entrepreneur?! And how do you become a successful entrepreneur?

Is there a difference between an entrepreneur and a small business owner? They say that an entrepreneur is someone who can build a plane to land when he falls from the side of a mountain. This is how the idea of entrepreneurship is summed up. Many people think that as soon as they start a project, they will become an entrepreneur. But the truth is that an entrepreneur is someone who has innovative ideas that make a difference when implemented. Look at the pioneers of Silicon Valley and the change they have made in people’s lives around the world. How many people around the world do not use Facebook? Or message their friends via WhatsApp? And who goes to America and does not rent a car from Uber and drive it to their rented apartment via Airbnb? For more great ideas, check out your comprehensive guide to finding a successful entrepreneurial project idea and more than 5 ways to generate innovative ideas.

The first characteristics of an entrepreneur are creativity and innovation, but innovative ideas alone are not enough. They must be coupled with good planning and studying the idea and the paths of success and failure surrounding it. How many innovative ideas and projects did not last long and failed due to the lack of good strategic planning? A successful entrepreneur is indeed an adventurous person who believes in his idea and trusts himself and his success, but all of this requires careful study and appropriate planning. Here you can consult our experts in e-marketing to help you with strategic planning and project studies in addition to analyzing the target audience and other effective services that have proven successful with hundreds of clients.

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Successful entrepreneurial projects and 7 steps towards making glory and reaching the top

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