Business owner versus entrepreneur!
Business owner versus entrepreneur!
Are you an entrepreneur or a business owner? Have you ever wondered if there is a difference between the two? Do you reason that both provide jobs for the unemployed, give solutions to consumers, and maybe help in developing nations’ economies?Should we just say they have many similarities? It can be quite difficult to clearly explain the difference between a business and entrepreneurship.
Today’s entrepreneur has become almost the same with “business owner,” But in my opinion, the differences lie in the ‘extent of their vision’. I will explain! The truth is that many business owners are not entrepreneurs.I can say ‘business owner’is a position or better still a job title while an ‘entrepreneur’ is a mentality/belief.
Who is an entrepreneur?
It is someone who has a venture, idea, or innovation around which he or she builds a business. The person takes risks to succeed. They are not in business just to make a level of income. Entrepreneurs want more than to pay their daily bills; they want future wealth.
When you think “entrepreneur,” think about businesses that want to become the next big thing, the next Facebook, Google, Tesla, etc. Entrepreneurial companies are oriented toward growth and expansion. They live and thrive on adaptation, innovation, and implementation of technology, product, or service.
And, who is a business owner?
An individual or entity who owns a business entity in an attempt to profit from the successful operations of the company is a business owner. He/she is the legal proprietor of a business, owns the assets and profits from them.
One important fact to understand about business ownership is that regardless of the type of company/structure you have, you will work for your board, customers, management, investors, and any other party that has a stake in doing business with you. Let’s start!
MOTIVATION
A “business owner” saw a great opportunity or the only thing he/she enjoy doing and know how to do.
An “entrepreneur,” on the other hand, saw a better way of doing things, or saw a gap or a need in the industry/ community. It could also be to make an impact or leave a legacy.
This is always reflected in what they say when prompted to respond to why they are doing what they are doing- the motivation.
VISION/PURPOSE
A “business owner” focuses more on making sure a company (the business) is making a profit.
An “entrepreneur,”focuses on generating new value, which could include financial value.What counts for an entrepreneur is not necessarily profit, but other less tangible but more rewarding outcomes for the person.
SCOPE OF ACTIVITY
A“business owner”has his/her focus mostly on smallimprovements to an existing situation.
An “entrepreneur” tries to imagine how things will turn-out even into the future and work toward making that idea a reality- more push for more improvements.
FUNCTIONALITY
With a “business owner”, the focus tends to be more reactive as they would put out the fire instead of preventing it. They have a wrong image of the world- where employees would do their jobs, customers would pay on time, and equipment would function as designed.
An “entrepreneur” is largely forward-thinking and would ensure that there are no fires.This is part of what increases their risks though it presents higher rewards when successful.
VIEW OF BUSINESS
‘Business owners’ have a shorter-term view of the business which is a reason there is no plan in place to continue into the foreseeable future. A business named after the owner definitely does not present an opportunity for a potential buyer. They work ‘in the business’.
‘Entrepreneurs’,more often than nothave an exit strategy built into their business. This makes them choose a more neutral or operational name that anyone could call their own. They have a longer-term view of the business, they plan business operationsin a way that allows them to escape the operational aspects of the company. They work ‘on the business’.
DEGREE OF RISK AND REWARD
Risk appetite for a “business owner” is tiny and for most, missing. They are primarily in it for the profit and this gives smaller rewards.
An “entrepreneur”has a good risk appetite and will question the status quo. Their business was born out of noticing a gap or a need, not just a way to make money.There is the potential for higher rewards.
To simplify this knowledge, I have put their differences in a table for your pleasure.
| # | BUSINESS OWNER | ENTREPRENEUR |
| 1 | Administration of business | Invention of business |
| 2 | Have an opportunity | Have a duty/ Identified a gap |
| 3 | Profit, Linear, Incremental | Value, Significance, Leap forward |
| 4 | Logical, Features | Holistic, Benefits |
| 5 | Facts, Measure | Emotion, Visual Thinking |
| 6 | Search for truth, Short-term | What is intuitive, Long-term |
| 7 | Minimal Risks, Predictable | Risk, Uncertainty |
| 8 | Smaller Rewards | Potentially High Rewards |
When you study most renowned entrepreneurs, you could make the argument that business owners create a job while entrepreneurs create a solution/impact, or even social movement.
Assess yourself today if this is what you want to do.
Are you cut as a“business owner”, or “an entrepreneur”?
