5 Key Differences Between a Business Owner and an Entrepreneur

by Startacus Admin

Business owners and entrepreneurs may have many similarities but there are several key differences too - here, we take a look at some of those

A man enters home and with a thud sits on his favourite couch. It has been another long and uneventful day at work. Today he had to leave the office late so that he could finish up the work pile since the deadline was fast approaching. He feels like he would rather be self-employed than work as someone's employee. After a meaningful conversation with his family, he hands in a resignation letter. The amount he had saved would be used as capital to open an automobile repair shop along a busy highway since he trained as a mechanic.

In 1975, two computer geeks, Bill Gates and Paul Allen founded Microsoft. Computers and everything associated with them as part of their DNA as it were. Up to date, it is an international company that reaps billions of dollars in profits. It all began as something simple, but over time has developed into a giant in the world of technology. Does a difference exist between the two? As often as those words are substituted for each other, they are distinct. A look at their meanings might clear up the mist a little.

A business owner/business person is one who is engaged in business activities with the sole aim of profit. On the other hand, an entrepreneur develops new ideas and often undertakes financial risks in the running of the business. He also ensures coordination and management. In some cases, they could be all small, but their drive and functionality draw the line. Need more knowledge? Read on.

Risks involved

Business people have a keen interest in money. Risks are carefully calculated to determine their effect, especially on gains. If the probability for loss is higher than the returns, the owner is more likely to dismiss the idea. The thought of being bankrupt and running at a loss or even eventual closure is one that is dreaded by many. Uncertainties are unwelcome; only profitable solutions are embraced.

Entrepreneurship and risks go hand in hand. To advance or expand the venture, entrepreneurs often swim in turbulent waters where the outcome might be unknown. If bad comes to worse and things fail to work out as planned, they are willing to go back to the drawing board. If the outcome is fruitful, rewards are abundant.

Motivation

A family man has a household to take care of and a mortgage to service. Which is a viable option to cater for these? A small business. Probably he finds enjoyment in his work, but his main concern is the incoming cash.

An entrepreneur derives joy and satisfaction in what he does, whether or not profits scale up. It's not only about the bills. He works passionately and is gratified if his business idea benefits the people or helps deal with problems. Love from his job is often sensed.

Creativity

Many are the times we almost correctly guess what businesses will be opened once a building along a busy street is completed. Suggestions brooding in our minds could include bars, restaurants, or boutiques. These have and will continue mushrooming. Few people will have creative ideas hence the good old recurrent line of work. Businessmen might still prefer the conventional approach in operations.

Innovation is an essential part of entrepreneurship. Individuals are always doing their best to keep up with the dynamic nature of the world. This enables them to come up with services or products that match the changes or enhance already existing ones. They focus on emerging trends and technologies to fill a niche and enhance growth. Mark Zuckerberg, for instance, is among those behind the multimillion company Facebook which was started to enhance communication with others. It is also evident that most startups are by entrepreneurs.

Flexibility

Does the business have a stable income after all necessary deductions? If the answer is a resounding yes, most business persons are comfortable. Taking the path of least resistance, they might be content with the normalcy of their occupation. Some may be reluctant to make adjustments in their operations fearing a reduction of customers. Their work becomes an integral part of their lives so much so that the thought of selling the business could be nerve-wracking leave alone, passing it on to others.

Growing to be a well established and known company is a dream for most founders. They look forward to a time in the future where their projects will flourish, be acceptable, and widely used. If the highest bar is having a share in the global market, they are ready to chase that goal.

Competition

All businesses have to fight for their space in the market to remain afloat. There are similar products on the shelves hence stiff competition. If an establishment restructures, other industry players have a watchful eye and will also strategize to be on a par. The uniqueness of the new product makes entrepreneurs the leaders in the market. They designed something; hence their position is still established even after others create imitations. They could be their most significant competitor as they try to generate more mind-blowing innovations.

The Bottom Line

There you have it; the contrasts that set the two apart. Business people try to find a place in an already established competitive market. The owner has less thought for the future. Moves are mostly based on previous successful real-life examples. Customer satisfaction is a top priority. Entrepreneurs are creatives who set the pace in the subsequent trends. Being bold risk-takers, they flow in the wave of an unpredictable outcome often with minimum calculation. Altruism can be noted in them; doing what they love wholeheartedly for others' benefit.

Nonetheless, both are necessary. Superiority for one could cloud the role that the other performs. They both fuel the county's economy and offer employment opportunities. Besides, one could startup as one and end up being the other. An expanded view of them, as discussed herein, might shed light on an individual on what suits him best based on the prevailing circumstances. Are you thinking of starting a small business and wondering which one to venture in? Instant Loan can help make the best choice. Whichever your choice, success to you!

 

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Published on: 4th December 2020