Relationship between Entrepreneurship and Small, Medium and Micro Enterprises (SMMEs): A Literature Review

Abstract

Through literature review, this paper seeks to examine the relationship between entrepreneurship and small, medium and micro enterprises (SMMEs), particularly identifying their similarities and differences. This review has become necessary because there is inconsistency in the use of the two concepts. Entrepreneurship and small businesses are very much intertwined to the extent that more often than not, they are used interchangeably, as if they mean one and the same thing. Even though entrepreneurship and SMMEs play a significant role in employment, income and societal changes, particularly in emerging economies, they are not synonymous. By carefully reviewing literature on both concepts, the study concludes that entrepreneurship differs from SMMEs. Thus, entrepreneurship is a process leading to the creation of SMMEs and large business ventures.