Small and Medium enterprises (also known as SME's) are those companies whose turnover falls below a certain limit. In most economies, small sized enterprises are much great in number. These companies operate with a maximum of 50 employees. In the United Kingdom, these enterprises employ 23.1 million people which combine an annual turnover of £3000 billion. Small and medium-sized enterprises (SMEs) compromise approximately 99 % of all the firms, 59.4 % of private sector employment and 50.1 % of private sector turnover and are mainly responsible for driving innovation and competition. Thus globally SME's accounts for 99 % of business members and contributes toward 40% to 50% of gross domestic product (GDP).
Peter Drucker describes entrepreneurship as the creation of a new organisation which builds up a profit irrespective of its ability to sustain itself. He states that if an individual is able to start a new business venture by himself and is capable of decision making, he is described to be an entrepreneur. This helps to differentiate entrepreneurship from the tasks relating to the allocation of resources in an established firm. Thus it substantially links the essentiality of entrepreneurship to risk taking and bearing of uncertainty by the person.
According to Peter Drucker, Innovation is the inventory of new methods to performing something. He describes Innovation and Entrepreneurship as two partners. Entrepreneur ship involves achievement of a task with the latest methods of working.
He gives seven different ways in which entrepreneurs can become innovative and can take control of their business. Firstly he says that an unexpected success, unexpected failure or an unexpected outside event is a stepping stone for a different opportunity. Secondly, dissimilarity between what others assume and what it is in reality can create opportunities. Thirdly, when a weak leak is identified in a particular process, the opportunity is provided to this channel when people work around the problem until they find a solution for it. Fourthly, a change in industry or market structure can be a source of opportunity for an innovative product or service. Changes in various demographic structures can also contribute towards innovative opportunities. Finally changes in people's attributes and improved knowledge can boost innovation.
Drucker states five different principles from which an entrepreneur can take advantage from the new innovations. Firstly an entrepreneur should be able to analyse the opportunities discovered by him. He should then try to identify if the opportunity discovered will be beneficial to the people and the society. Innovation must be simple and effective and should focus on the precise requirements. Innovations must begin small in the form of small or limited market which requires a small capital and few employees. Finally, the entrepreneur must aim at leadership. If the innovation is not able to establish itself, then it is considered not to be innovative enough which means that the entrepreneur can dominate in a small market.
Global Entrepreneurship Model (GEM) research program is an annual assessment of the level of entrepreneurial activity in the national level. It takes entrepreneurship as a whole and concentrates on the different roles played by individuals with respect to starting and managing a business. This improves relationships and understanding between entrepreneurship and national development. Therefore, GEM views entrepreneurship as a process in which a person has established a business and sustains it by himself which is prior to management and operations. An entrepreneur can also be someone who has established his own business but who fails to generate higher growth. Thus GEM provides opportunities to entrepreneurs to aspire by providing aspirations such innovativeness, competitiveness, and higher growth aspirations.
ENTREPRENEURSHIP AND SMALL BUSINESS OWNERS
Most people in today's world assume that entrepreneurship and small business owner are of no difference. However, as much as they have things in common there are still huge differences between entrepreneurship and small business owner.
Firstly, Entrepreneurship creates huge amount of wealth generally in excess billions of profits in comparison to small business owner who generates enough income to substitute traditional employment. Secondly, the risk of an entrepreneurial activity is higher than a small business activity. Thirdly an entrepreneurial activity is usually associated with considerable amount of innovation than what a small business activity may show. Finally, a successful established small business can contribute huge amounts of profits for a lifetime whereas an entrepreneur can generate wealth for a small period i.e. 5 years.
ENTREPRENEURS AND MANAGERS
The managers in today's businesses are repeatedly asked to behave and perform like an entrepreneur and vice versa. The role of a manager is to develop and sustain the opportunities of the entrepreneur and the entrepreneur is contemplated to learn the analytical disciplines of a manager. Peter Drucker's famous book on Innovation and Entrepreneurship explains that entrepreneurs are not capitalists, investors or employer but is a way to raise, deploy and invest capital. An Entrepreneur establishes a business venture based on the morale of the people and the society and acts innovative to create changes while a manager organises and provides services in order to achieve results for an entrepreneur. Thus, the main purpose of success is not to "make a lot of money. The scope of management and entrepreneurship both contribute the present and future success of a business. Managers who lack innovation, or an entrepreneur who excels in innovation but cannot operate his business, will not be able to keep the business running in the long-term. To be successful it is essential to incorporate management and innovating skills within the business, to benefit the business as well as customers.
In the context "women are worse at micro and small business entrepreneurship than men worse can refer to dishonour of women entrepreneurs. It is mainly because of the perception that this field is better suited for men. Moreover it is assumed that women are not able to complete a given task efficiently which is counterfactual because women are equally acceptable in terms of entrepreneurship and their success would be based on opportunities and guidance given to them. Thus, in a world of equal opportunities, people must diversify their thoughts and should believe that women are equally per formative in comparison to men.
When we think of women establishing a business ten or twenty years ago a peculiar image comes to our mind of those women who were not under the guidance of a man and who have children staying at home. These women start these businesses out of financial indispensability and often fit the custom of working in order to support their family. Their education was not sufficient enough to provide knowledge regarding business and had less or no working experience. The enterprises were usually small scale or retail establishments which were started with personal savings or grants from friends of other family members. The growth of such businesses mostly remained small with poor labour intensive operations. Despite the fact that some women entrepreneurs still fit in this classification, most of the modern female entrepreneurs differ in terms of background and experience. Over the years it has been witnessed that women are starting their own businesses in eccentric numbers. They emigrate from large organisations and prefer to start businesses by themselves for numerous carrier reasons and opportunities such as to get away from dissatisfactory of slow career progress and anticipation of better career opportunities, and corporate curtailment. In this way they are able to fulfil their personal dreams of entrepreneurship by being the leader and making the approach towards success of the business.
The small businesses were the major source of new job growth which led to the rapid increase of women owned enterprises in the 1980's. It has been noticed that women are establishing businesses at twice the rate of men. Between the years 1972 and 1987, there has been a significant increase of businesses owned by women with a change from 5% to 28 % of all U.S businesses. Thus it clearly shows that women have been considerably improving as entrepreneurs which prove that they are equally competitive in comparison to men.
ATTRIBUTES OF WOMEN ENTREPRENEURSHIP
There is a general understanding that male entrepreneurs consistently differ from the general population in personal characteristics such as aptitude, and role of leadership. It is believed that male entrepreneurs have a greater capacity in these dimensions in comparison to many employees of large organisations. Are female entrepreneurs similar to male entrepreneurs in respect to such characteristics or do they counterpart to it?
There is evidence based on numerous studies that there are no differences between male and female entrepreneurs in most personality dimensions which include motivation for success, aptitude, persistency, combativeness, independence, non allegiance, goal orientation, ability to take risks and role of leadership. There are a few differences in how male and female entrepreneurs manage their businesses but compared to men, female entrepreneurs are considered to be more adaptive and are more socially aware with wider and improved knowledge in different business areas which enable them for better delegation and long term planning. Thus overall both men and women's motivations for the introduction of business is related. Like male entrepreneurs, females also seek independence, autonomy, higher income, and innovative opportunities to dominate the market. However the only possible difference between them would lie in their motivation to initiate the business as men often appeal to economic reasons whereas women often allude to family needs. Another possible difference could be that men generally outlook entrepreneurship as a business decision while many women outline it as a way of satisfying family and career needs. Thus overall, the persuasion for the establishment of a business is quite related for both male and female entrepreneurs.
STEREOTYPES IN ENTREPRENEURS
In spite of their success, many female entrepreneurs report that they have to work harder than their male counterparts to prove their competence as business owners to customers, suppliers, and other resource providers. Women maintain that this extra effort is especially critical if they are in traditionally non-female-owned businesses, such as manufacturing, transportation, or construction.
A 'Classical' entrepreneur is described as an individual who is able to act innovative by changing or altering the market and introduce a new concept. They are also involved in risk taking and are aware of its consequences such as financial loss and reputation of the organisation or success such as a higher return on a particular investment. Druckers definition of entrepreneurship is directly linked to the innovative ability of a Classical entrepreneur. Therefore, in order to become a successful entrepreneur, a person should consider the sources and principles of innovation.
A 'Craftsman' entrepreneur is someone who does not have sufficient education but possesses specific practical skills. These entrepreneurs have a good understanding of the business approaches and are inventive and show balance assurance. He is successful in running a business by himself or by employing people to work for him. However a craftsman entrepreneur may face some difficulties in his business such as lack of persistence in bringing projects to accomplishment during the expansion of business by hiring employees for his organisation. However a craftsman can strengthen his business by entering into a partnership agreement.
An 'Opportunistic' entrepreneur is stereotyped as a middle class person with regular education and risk-orientated focusing on growth as their main goal for their company. An opportunistic has a more active approach rather that paternalistic when dealing with employees and is "manipulative of people and resources.
Lastly, there can be some 'Research and Development' entrepreneur. This stereotype is seen as younger that the other three and is found to be related to science universities, institutes and parks. As these entrepreneurs work around science based ideas their entrepreneurial streak stems from how their knowledge can be converted into "basic asset of a new enterprise.
In order to be successful entrepreneur, one must be well associated in the society. One of the main sources through which an entrepreneur can get access to resources such as information, advice or capital for starting and operating a new business is through association. Entrepreneurs who are well connected to many diverse information sources are those who are likely to survive and make their businesses grow.
In contrast, women have historically been removed from having networks in large organisations which stands as a huge barrier for the initiation of a new venture. Therefore women have developed other means of networking strategies such as representing as an important source of information for other women than for men. It has been noticed that men have fewer women in their network of suppliers, customers, bankers and creditors. Therefore if connections bring access to resources, women starting their businesses may be at a disadvantage compared to male entrepreneurs who are considered to have better connection.
Women also have different priorities than men in establishing networking relationships. Men's motives are often more instrumental which includes seeking personal gain, while women have more affective considerations in social relationships. As a result of social relationships, women find it harder than men towards carrying their feelings away in business relationships. Men rely on such outside advisors as bankers, lawyers, or accountants for information, advice, and support which therefore makes their spouses typically play a secondary role. Female entrepreneurs, on the other hand, indicate that their husbands are their most important source of support.
Education plays a vital role in the order for someone to become a successful entrepreneur. An entrepreneur is some one who has the capability to be innovative and is able to act more than just acquiring the basic knowledge and getting finance to run the business. It not only requires knowledge but also skills to find out the right strategy to manage the business. It has been found out of the majority population in the UK, only 9% of men and 16% women have returned for education because of several factors such as marital status, family size, and union membership.
It is generally understood that women who come from a rich family background are more likely to have higher education than those families who have lower income. This implies that higher level of education connects to higher wealth with lower start up capital and vice versa. Good education will improve the performance levels of a business activity and also have an impact on the various choice of occupation which will provide the opportunity to become a successful entrepreneur.
RACIAL/CULTURAL ISSUESAGE AND EXPERIENCE
The main issue that most of the women entrepreneurs face in this world is the lack of opportunities due to experience. The government of a nation must play an important role in providing support to women entrepreneurs such as women enterprise centres and firms that produce information in relation to finance and bank services which sustain the growth of women entrepreneurs. However, it has been witnessed that the UK government has failed to provide assistance to an ample number of women-owned businesses.
On average women entrepreneurs are younger as compared to male entrepreneurs which includes that 43% of the women are under the age of 44 compared to 30 % of the male entrepreneurs who are under the same age. Another difference is that women have less connectivity towards start up capital, management experience and fewer interconnections in the informal business networks which provide vital support the small sized firms.
Experience is considered to be the fundamental source of acquiring knowledge on entrepreneurial activities which influences various outcomes. It also helps the entrepreneur to act wisely by changing attitudes in breakdowns and helps in making adequate reasoning. However experience may also differ between male and female entrepreneurs as women's ability to obtain and realise loans requirements may result in them facing different issues when starting or developing an enterprise. Experience also contributes for the customs and opportunities that may be provided to an entrepreneur. Thus it can be accepted that the problems faced by the entrepreneurs may are alike. Therefore, with the use of the experience gained, entrepreneurs will be able to use the knowledge and tackle various situations and adopt the required practices. Thus experience is a very important human capital endowments.