The relation between running a small business and being an entrepreneur

6 important questions on The relation between running a small business and being an entrepreneur

What is the relation between running a small business and being an entrepreneur? (3)

  • In small businesses, tight relationship between business and person running the business
  • Entrepreneurship: Behavioural versus occupational notion
  • Economic roles: Neo-classical, Austrian school, German school

CQ 1: Why is 'Knightian uncertainty' a necessary but not a sufficient condition for entrepreneurship?

Opportunities need to be identified, evaluated, and acted upon

CQ 2: Are some people particularly good in recognising entrepreneurial opportunities?

Yes: Person-job fit theory
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CQ 3: What factors constitute self-employment?

Self-employment: Control, integration, economic reality, mutuality of obligation

What is the Knightian premise?

Everyone can be an entrepreneur if the price (risk-adjusted rewards is right (relative to alternatives)

What is the person-job fit theory?

Utility is high if there is a good match between an individual's characteristics and the characteristics of the job
  • Proactive personality (highest)
  • Shyness (lowest)

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