Do You Know the Difference Between an Entrepreneur and a Small Business Owner?
You’ve probably heard of small business owners and entrepreneurs, and many of you likely use the terms interchangeably, but the truth of the matter is that while there are similarities between the two, there needs to also be a distinction. The word entrepreneur gets thrown around a lot these days, but just because you run a small business does not make you an entrepreneur.
So what are the differences between the two? Sure, they can both own a small business, and often do, but what separates a small business owner from an entrepreneur is the way they think about their company and how they approach business.
- Risk: This is probably the biggest difference between an entrepreneur and a small business owner. Entrepreneurs take big risks. Sometimes these pay off and 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 they want isn’t the stress that comes along with huge risk.
- 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 concerned with the day to day operations, the bottom line and successfully filling their role in the community. On the other hand, entrepreneurs dream in the future and they are working towards a goal that often goes well beyond the end of the year.
- Innovation: Small business owners know what works for their business, and they usually stick with that because they know it will bring them continued success in the future. They’ve filled the niche they’ve set out to fill and there is no need for them to go further. 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.
- Scalability: When it comes to entrepreneurs, most of them dream that their company will become huge in the future. They don’t necessarily want to run the day to day and many dream of someday selling their business. On the other hand, small business owners are more sentimental when it comes to their company and wouldn’t dream of handing it over to someone else. They love where they are and they aren’t looking to jump to the next big idea once they’ve gotten all they could out of their current business.
- Passion: While both entrepreneurs and small business owners can be passionate about what they do, it’s usually for different reasons. Small business owners often do what they do to support themselves and their families, as well as to work for themselves. Entrepreneurs on the other hand are often after change. They want to change the world, they want to make their mark and they want to be heard. It’s not enough for them to be successful, and money often is not what they’re after – what they want is to make a big difference.
When it comes down it to, certain people are more cut out to be small business owners and others fall into the entrepreneur category. The good part? We need them both. Not every company needs to turn into the huge success that entrepreneurs often see in their minds. Some are better left small and that’s often where they stay. So which one are you? Which one do you want to be? To be successful, it helps to do what you love. If you’re thinking about starting a company or you’re already a business owner, consider the above and really think about what you want your company to be. You may realize that you’re not the entrepreneur you think you are and that you’re more like a small business owner, or you may realize the opposite. Whichever it is, it’s important to focus on what you want and plan the steps on how to get there. It’s not always easy – most of the time it’s not – but it can be done if you set your mind to it. Click here to learn more about the difference between an entrepreneur and a small business owner.