Concept of Entrepreneurship

Entrepreneurship as a dynamic process of vision, change and creation, requires to be taught for the transfer of its skills and knowledge from an expert to someone else (Kuratko, 2005). It involves an application of energy and passion towards the creation of an enterprise and this includes the; willingness to take calculative risks; teamwork; the creative skill to marshal needed resources; fundamental skill of building solid business plan; and finally, the vision to recognize opportunity where others see chaos, contradiction and confusion (Kuratko and Hodgetts, 2004). Entrepreneurship as a concept, therefore involves mental activities such as creativity, innovativeness and pro-activeness.

The small business operator/entrepreneur is therefore someone who assumes the financial risk of beginning and managing a new venture. The venture can be based on totally a new idea, new way of doing things and a new location or attempting something no one else has done before. Schumpeter (1934) as cited in Google (2003) describes an entrepreneur as an innovator who implements change within the market through the carrying out of new combinations.

Concept of Small Enterprise

There is no universal definition of micro and small enterprise since the concept reflects the level of development of a particular country (Ikeano, 1985). However, in defining micro-and Small enterprises the most frequently used indicators are amount of capital, number of employee and sales volume Mbilinyi and Shuneh, 1995; URT, 2003). Sometimes another yardstick is used namely type of management and administration (TRwanshane, 2000). Accordingly, in Japan micro and small enterprises are defined in terms of main activity, paid up capital and number of paid employees (Mbilinyi, 1999). In Tanzania, it is defined as those enterprises with a capital investment of T.shs.500,000 or less and up to 10 paid employees (Mbilinyi, 1999). In Nigeria, it is a business owner manager and has more than 50 employees (Osuala, 2006).

Reflecting the idea those definitions of micro and small enterprises depends on the level of development of a given country. Accordingly, micro enterprises are those having 1-4 employees while small businesses are those employing 5-49 people. Microenterprise engages family members and fall into the category of informal sector. On the other hand small and medium enterprises are more formal.

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