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The encyclopedia of small business and entrepreneurship introduces small businesses as organizations, partnerships or sole proprietorships with lower resources and annual income compared to medium-sized or large companies. It mentions that the concept of a startup business is to create a small business to provide products/services with the purpose of disrupting the sector or maximizing profits. This encyclopedia highlights that there's a distinction between small business (SB) operators and entrepreneurs-these roles really have lots in common-however there are clear differences that separate them. Small businesses typically deal with recognized and established products or services, while startups focus on innovative products. Therefore, small business owners often deal with known risks, while entrepreneurs address unknown risks. In small businesses, people seek to achieve limited growth and sustained profitability, while entrepreneurial ventures aim for rapid growth and big returns. The encyclopedia mentions that start-ups usually have a significant impact on the economy and communities, which can also have knock-on effects on other sectors, such as job creation. In this respect, small businesses are rather limited and narrowed to their own field of specialization. This encyclopedia stresses that the most successful entrepreneurs usually have a unique vision, or the ability to determine which products or services customers will require or need going into the future, and the ability to design products or services that meet these needs. Small business operators who run distinguished companies do not essentially need this type of predictive capacity. Small business managers are good at management-to ensure that all tasks are completed as planned and within budget.
