A business owner (self employed) is defined as “an individual or entity who owns a business entity in an attempt to profit from the successful operation of the company.
Whereas, an entrepreneur is “a person who organizes and operate a business or businesses. Taking on greater than normal financial risks to do so.
Entrepreneurs all effort is on system. Whereas business owners may be focused on the profitability of their business. Entrepreneurs leverage peoples time, ideas, and money to achieves there business goal.
A study published in the Quarterly journal of economics revealed a key difference of being an entrepreneur and self-employed. The researchers found that a business legal status whether it is incorporated or unincorporated is what separates entrepreneurs from other business owners.
Sure both entrepreneurs and small business owners both own a business. But what separates them is what they think about their company. And how they approach the business.
- Big picture ideas: entrepreneurs have a vision that goes far into the future. Small business owners focus more on the now and their dream is often just ahead of them, and within reach. They are more concern with the day to day activities, that without them the business may not operate. They are the best on there team. If at all they have a team, on the other hand, entrepreneurs dream of the future. And they are working towards a goal that often goes well beyond the end of the year.
- Scalability: when it comes to entrepreneurs, most of them dream that their company will become huge in the future. And turn they’ll turn it public(I.e imcorporating). They don’t necessarily want to run the day to day affairs, and dream of some day selling their business. On the other hand, small business owners are more sentimental when it comes to their company and wouldn’t dream of handling it over to someone else, Except it there children or relations. They love where they are and aren’t looking up to jump to the next big idea once they’ve gotten all could out of their current business.
- Risk: this is probably the biggest difference between an entrepreneur and a small business owner. Entrepreneurs take big risks sometimes they Don’t. But risk is part of the appeal of becoming an entrepreneur. Small business owners often tend to go with what they know and avoid things that could potentially turn into a huge problem for them. They know what they want, and what isn’t stress that comes along with huge risk.
- Innovation: entrepreneurs are always looking for the new thing and are usually frequent visitors of technology sites. They can’t get enough of what’s new and hot,and that’s often why they are at the forefront of huge movements. Whereas small business owners know what works for their business, and usually stick with that because they know it will bring them continued success in the future. They’re filled the niche they’ve set out to fill and there is no need for them to go further.
- Knowledge: entrepreneurs are obsessed with self growth. They know that for them to minimize risks have broadened there knowledge. By learning all they can, in all business field. From marketing to taxation, accounting etc. Not that they would hire specialist in those field but they have to maximize there understanding. Whereas small business owners are mostly specialist, they try to be the best in there Field and ignore any other room for self growth.
- Time: meet any entrepreneur and they will tell you they want to have total control over there time, by spending on what they like, and travelling when they which. Have a Buck to spend with kids and watch them grow up. they hire expects and leverage there time. Whereas as small business owners are the best on there team, there presence are always needed to work according to planned.
How entrepreneurs protect there business.
Incorporated status provides business owners with some added legal protections, which provides them a little more freedom to delve into larger and riskier investment compared to there incorporated counterparts.
Incorporated business are able to separate their personal finances from the business. This mean that if there is a liability issue only the business, asset are at risk. In an unincorporated business there is no legal distinction between personal company finance and assets.
And apart from this incorporated business allows for more flexibility. This flexibility extends to spitting the income among share holders and how and when funds are withdrawn from the business.
Entrepreneurs and small business owners should expect to work smarter to ensures their company remains competitive. And focus on building brands because that what makes customers relate with company. It’s easy to be distracted by industry trends. But you need to stick to what makes your brands unique.
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