Category: Management

Entrepreneurship is a vital component in growth and development of an economy. In definition, it is a structure by which society changes technological info into goods and services.  In a capitalist economy, entrepreneurship drives the process of change and mitigates not only technical, but also spatial, as well as technical inefficiencies within an economy. From the beginning, it was considered a mechanism to establish new firms for business endeavor, but later, it aimed at bewildering companies with the spirit of trade to conquer the predominant theory of corporate management.

However, entrepreneurship is revitalization, as well as rejuvenation for modern organizations. From the onset, it aimed at development, profitability growth, as well as growth in revenue to develop new goods, processes and services. Insulander, Ehrlin and Sandberg points out that the growth of corporate entrepreneurship achieves momentously, but it has various weaknesses, especially in short-term financing. 

However, there are various differences in the manner in which small and large organizations handle entrepreneurial activity. Despite the fact that entrepreneurship is associated with small firms, which are flexible and lack bureaucratic procedures, firms must respond fast to fast-moving tracks. According to Nabi, Holden and Walmsley, the difference between an established organization and a start-up firm is examined through the business models, attitudes about the business risk, as well as the growth strategy versus optimization. Startup business searches for a business model that works, whereas established enterprise focus on execution against an established business model. 

Nevertheless, large enterprises are under threat of the changing markets, as well as emerging technologies to make innovation a priority, while start-up businesses are driven by dynamism to experiment. Start-ups have the primary goal to grow, add capabilities and expand operations while established corporations optimize what they have accumulated. They aim at squeezing their existing business models and deliver more to their stakeholders. However, startup businesses are riskier compared to established corporations because they manage risks and decide on lowering the risk as well as return optimization.To venture in the contemporary global market, small as well as establishedfirms must be agile and quickly respond to fast-moving markets.This paper examines how an established corporation offers different opportunities and checks to entrepreneurial behavior compared to a start-up firm. 

Entrepreneurial Development

Individuals grow from childhood to teenagers then to adults, which is the same applying to business. However, every stage of business development is characterized by different encounters, priorities, processesas well as financing sources. For instance, time is extremely essential for every business person before delegation process takes its course. An entrepreneurial activity undertakes various stages ranging from the initiation stage to expansion of the entrepreneurial skills.

For a startup, an entrepreneur develops his or her own ideas to gain market acceptance. He or she concentrates on pursuing a key opportunity and gain the market acceptance by selecting business ownership structure, planning, as well as locating professional advisors. Nevertheless, business relies on friends, investors, suppliers and customers for its survival. From the start up stage, the entrepreneur gets his or her potential clients and initiates venture capital and holds money through holding of equities in the companies he/she has invested in.

However, the entrepreneur grows to make high profits, strong clients and increases revenues with increasing opportunities and problems. Competition becomes a burning issue and the business calls for extra funding. Sound management strategies, which requires that it obtains money from banks, grants, leasing options and other financial institutions is required to gain faithful clients. In this case, the entrepreneur looks at the potential customer preferences and outsourcing to increase his or her productivity. At this stage, the entrepreneur can create his or her own distribution channels and markets to have a bigger share in the market, have joint ventures, invite investors and other business partners.

Working in a start-up is more fast-paced, fast- and ever-changing and on the whole, a place where there’s a lot of action and free communication in contrast to the slower-paced and more structured corporate environment. In contrary, there is more suppleness, opportunities, a steeper curve to learn and better chances to come up with an impact than that in an established corporation. In unison, it comes with lowreturn and great risk than which can be anticipated in an established work setup.

From the above case, an entrepreneur can develop from a start up to a corporate entity. However, working at an established corporation derives more pleasure for achievement of his or her goals because the process has various opportunities, which include;

Goal Setting

As an entrepreneur works in a startup company, he/she is required to undertake tasks outside his or her job specifications. On the contrary, working within an established corporation makes him or her understand his/ her stand within the hierarchy. This means that there is a well-established job role and his or her work is in an established job role. The startup business offers the opportunity to multi-task and gain knowledge about other businesses besides the entrepreneur’s specialty, which becomes ideal for individuals with specified career objectives.


Startup businesses ensure that employees remain transparent. However, established corporations have their own business plans, whereby they have strategies to cope up with competition. This enables an entrepreneur focus on organizational decisions in place and challenges facing this huge institution, which are extremely essential in the management of human resources.


According to «Know-who Based Entrepreneurship», teams within a startup company are generally less compared to those in a corporation. This means that there are various ideas within an established corporation compared to a startup corporation. This gives an individual the opportunity to road-test and improves general ideas towards business.


Working in a startup company requires tight deadlines where else in an established corporation there is room for research and development, which can lead to extra business opportunities.

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Mentorship and Exposure

In a startup corporation, there is exposure to business compared with an established corporation. This enables and individual learn different things on his/ her own. However, within an established corporation, this exposure is extensive because of specialists in evert department which adds special knowledge and access to better practices.

Working Hours

In a startup company, there are more working hours and one may be forced to work extra hours. However, in an established corporation, working hours are laid off and can allow an entrepreneur venture into other business opportunities.


Established companies offers more job security compare to startup corporations. This can enable an entrepreneur accumulate funds and start up his or her own business.

Work Expectations

Startup companies value the amount of work done and disregard the quality.  They face various challenges from revisions and improvements. Established corporations aims at quality and ensure that their customers are satisfies, which is very critical for an entrepreneur.

Working Environment

In a startup corporation, there is a disorganized communication chain and employees work together to achieve a common objective. Working in an established corporation ensures that responsibility is guaranteed to every department and quality is guaranteed. This helps an entrepreneur is delegation and organization of work.


In an established corporation, there are various opportunities, skills as well as experience because of the various experienced staff.


Salaries received in an established corporation are high and can enable an entrepreneur establish his/her own business enterprise. This ranges from benefit packages to allowances and insurance.


Startup businesses venture into risky businesses. This enables an entrepreneur to familiarize with various risks involved in businesses and conduct further research before establishing in any business.


Startup business is less motivating compare to established corporations. Startup business calls as for emotional oscillations especially where an individual is in charge. Workers lack a specified area of expertise and need to ensure that every work is complete regardless of the area of expertise.

Research and Development

Startup corporations help an entrepreneur understand the basis of marker research. This is very essential especially when the entrepreneur aims at venturing in risky areas. Additionally, startup companies ensure that every person is trained on every field and can undertake every task which is very essential for an entrepreneur.

Team Work

This is a very crucial character for an entrepreneur. Startup companies encourage teamwork for the entire success of an organization. However, they take advantages of intelligent individuals and increase their output. According to Jefferson, human resources management is very essential in ensuring that an entrepreneur mobilizes individuals for an overall success of an organization.

High Potential

Big corporations invest highly in young talents. This motivates an entrepreneur to utilize young talents for long-term performance of his/her own business.

Stock Options

A startup company can offer an entrepreneur a chance to venture into stock options as it may decide to enter the stock exchange market.

Fast Growth

A start up business has extensive marketing, sales and product development. An entrepreneur can venture in the process and use their policiesand procedures to create his or her individual marketing strategies.

Financial Stability

An established company can survive periods of great losses, which cannot be the case in a startup company. Though the advantages of the large-scale economies, these corporations can survive in the market unlike the startup companies.

Benefit Packages

Health and holidays normally exists in large corporations because of the largescale economics of scale. Insurance packages are high and there is a better change to accumulate high returns for future investment.

Individual Mistakes

Established companies can tolerate individual mistakes compared to startup corporations because they might fail to affect the business. Therefore, an entrepreneur has more changes to try innovations and developments within large corporations than small ones.


The management of startup corporations is not well compared to established corporations because of advanced training and more experience. Managers are competent unlike in smaller companies.


Due to the fact that startups are formless and young for their first years of business, they have strong ideas on operations and strategy. However, established firms have to keep up with the existing models to make investors and shareholders happy. Startup corporations quickly adopt new technologies and deal with competition.

Less Bureaucracy

Established corporations use bureaucratic procedures and rules. Decisions are made by various individuals from various departments which slow and crawl various processes. On the other hand, startups lack bureaucratic procedures and make fast decisions, which are more efficient.

Competitive Pricing

Larger corporations enjoy a pricing advantage because of accessibility to more equipment, and save money on items their products. However, startups have less pricing advantage because of less overhead costs and few resources are used in product development


Startups have less staff within the organization and tend to have better and more open brand personality. The managers make appearances in every meeting and employees have less remuneration.

Self-Sufficient Engineers

Startups have smaller teams of engineers to serve different purposes within the organization. They share skills and solve problems because the organization aims to grow and achieve its objectives.

Less Formalization

In startups, there are less forms, sign-off processes and documentation. The entire effort is focused on product development. This improves team morale leading to high productivity. 


Individuals starting their businesses have different professional and mental makeup that those who have never created any business. Entrepreneurs see a problem and think in a creative manner to address it. They have a different approach to a problem and find a timely solution. Every successful startup consists of innovators, and it becomes a good opportunity for an entrepreneur to learn from. 


In established corporations, it is very difficult to find an individual’s work recognized. However, in a startup, an individual’s work is evident and credit given when due. This becomes a motivating factor for employees and gives the urge to work more on extra duties.


At a startup company, money is extremely needed to organizational activities. Therefore, there investor will have to look at ways to minimize expenditure. Therefore, an entrepreneur will have to learn how to utilize the less amount of money he/ she receive as remuneration.

Hard Work, Ownership and Self-Sustainability

A startup company instills an entrepreneur with realization of hard work. Additionally, the entrepreneur can think creatively and have tenacity, as well as innovation. Therefore, an entrepreneur will gain skills on product development risks and innovation solutions. Working is smaller teams means that every team member is responsible for the overall success of the team.

Ability to Do Various Tasks

According to Joensuu et al, in a more structured corporation, there are less opportunities to branch out into other areas. In a startup corporation, there are chances to venture into other areas such as filing, designing and many others. There are opportunities to try different fields and an entrepreneur can come up with different innovations.


Startup businesses do not pay well compared to established ones. However, working at a startup has other awards like an incentive-based system based on skills and opportunities acquired.

Political Stance

Working on a startup business has more political power compared to an established corporation. Passions for investment in a private enterprise are higher compared to an established corporation. Office politics face established corporation compared to startups and this tends to demoralize some employees.

Finally, startups are mostly sole proprietors while established businesses are corporation. The owners of startups are personally responsible for the organizations debts. However, if an established enterprise usually a company, runs out of funds, the owners are not responsible. Therefore, an entrepreneur should be confident and determined to cater for the business expenditure. 


This study looks at whether an established corporation provides different opportunities and restrictions to entrepreneurial behavior than a start-up firm. It examines various factor linked to both the two business entities. From the study, most of established corporations are separate legal entities while majority of the startups are sole proprietors. However, there are various factors which affect every type of business. In the case of an entrepreneur, it is advisable that he/she learns from a startup because it offers more opportunities for growth and development, better utilization of the available resources, ability to innovate and product development. 

Further, a startup creates room to venture in new enterprises, which is essential for management of a private entity. Finally, a startup company instills an entrepreneur with realization of hard work, and the entrepreneur can think creatively and have tenacity, as well as innovation. Therefore, an entrepreneur will gain skills on product development risks and innovation solutions. Working is smaller teams means that every team member is liable for the generaltriumph of the team.

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