The Difference Between Entrepreneurship and Small and Medium-Sized Enterprises


  • M. Y. Al-Abri
  • A. Abdul Rahim


Entrepreneurship, Small and Medium-Sized Enterprises (SMEs), Small Business Owners


This paper aims to explore the relationship between entrepreneurship and small, and medium-sized enterprises (SMEs) through a literature review by defining their similarities and differences. This analysis is important because the use of the two definitions is inconsistent and sometimes confusing. Entrepreneurship and small business are very closely intertwined to the degree that they are used interchangeably more often than not as if they mean the same thing. Although entrepreneurship and SMEs play an important role in job, income and societal change, particularly in developing economies, they are still not synonymous. This paper argues that entrepreneurship differs from SMEs by closely examining the literature on the two.  Despite their differences, entrepreneurship and SMEs play significant roles in an economy's development and growth. SMEs are seen to account for quite a large proportion of the business sector while entrepreneurial enterprises are seen as the drivers of economic growth and job development Entrepreneurship is a process that leads to the growth or creation of start-ups and small and medium-sized enterprises and business projects. Finally, this paper concludes with a framework of the relationship diagram that substantiates their discrepancy and similarities.