Small and medium enterprises, which are perceived to be more entrepreneurial, contribute hugely to the economy by employing great masses of people who would otherwise be jobless (Analoui & Karami 2003; Stokes et al 2010). These companies are crucial for economic growth through their inventive nature and support to larger companies. Outsourcing, which has become a major strategy for large firms to cut down their production cost, could not be possible without innovative small and medium business enterprises. The creation of innovation has long been the work of entrepreneurs.
The economic breakthrough has been stimulated by individuals of small and medium-size companies to a considerable extent, pulling their resources to bring their ideas to reality through the sheer determination to achieve a certain set of entrepreneurial objectives (Carter & Jones-Evans 2006). In most cases, smaller business enterprises have more patents than large organizations (Blackburn 2003). From this point of view, one can reach the conclusion that small and medium enterprises are a more entrepreneurial and fundamental part of developing the economy of any country. Small and medium business enterprises generate more patents for budding technologies (Blackburn 2003; Stokes et al 2010).
These generic patents on new ideas are usually centered on particular innovations with the high economic impact on society. The technologies have a high return on investment and thus contribute enormously to the economies of nations. Numerous myths have evolved to shed light on the concept of entrepreneurship. These theories basically pivot on the failures and successes of entrepreneurial undertakings. Shane (2008) argues that most of these myths are connected with the perception of a strong financial background.
Some of the common myths on entrepreneurship include: Starting a venture is not an easy process as it may sound. Most people who have given it a shot to start up different companies have hit a snag. Their efforts have been futile in operational business. Many businesses usually fail to accrue any profit during their initial financial periods.
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