One can become a business owner by acquiring a new company or inheriting the old one. However, an entrepreneur starts an idea from a scratch and make it big. We can safely say that this is major difference between a business owner and an entrepreneur.
We will discuss in detail about the traits of both business owner and entrepreneurs in this article.
A Business Owner
A business owner is somebody who claims a business that provides a product or service that benefits its clients. Business proprietors regularly have a thorough understanding of their industry and know who they ought to showcase their products to from the time they begin running their trade.
A commerce proprietor who runs a company or organization can step into their part after a commerce is as of now in operation, or they might begin a commerce of their possess with bolster from other experts.
Another key detail about business proprietors is that they get benefit from the victory of their trade, which they regularly utilize as this is their source of pay.
This implies that their essential duty is to run their business efficiently and seek ways to increase this to grow for the betterment of themselves and for the employees around the company.
An entrepreneur is somebody who begins with an idea based on a unique thought for a product or service, depending upon the demand in the market.
Several entrepreneurs start building up their companies on their own possesses and are mindful to watch out for resources, finances and necessary work being carried out to push the idea and make it a quick-to-market solution.
Trust me, being an entrepreneur is not easy or you can not merely become one by purchasing a domain name for few dollars or putting a CEO title on your LinkedIn. It takes a lot to be one. You need to take risks, manage expenses, work-life balance, routine, stress and the list goes on.
It takes years even decades to build something from scratch. But it is all worth it in the end.
6 Major Difference Between a Business Owner and An Entrepreneur
Although both the businessman and the entrepreneur are expert at running their firms but still there are some major differences that we’ve have listed below.
- Entrepreneurs always take growth focused approach. Few of them starts to make something small and meaningful but most of them start to scale and make big profits.
- Business owners are often thought to be sentimental about their business. They don’t think of selling their company. Always thinking about the same, their employees and their family.
- Taking more and more risk is a vital entrepreneurial element. Business owners however, take a very calculated risk and are thought to be risk-averse personalities.
- Entrepreneurs hold in-depth knowledge of so many things they are into, and are mostly called jack of all, master of nothing. However, businessman holds a limited knowledge, and often masters what they are into.
- Business owners sets weekly and daily tasks. In contrast to this, entrepreneurs think more frequently and plan ahead. They tend to be more visionaries than business owners.
- Business owners are always doing the same thing for years. However, entrepreneurs work on innovation and strive to challenge the status quo and create a positive impact.
The Risk Factor
Being an entrepreneur is always about talking and taking the risk. It’s a simple formula, the more the risk the more the return, good or bad. Oops! Yes, you read it write. Taking risk is not always fruitful to everybody. Sometimes you take a huge loan to start off with your idea, sometimes your mortgage your property to get some cash in hand and start.
If your idea is not selling in the market, what if resources are pulling back, that all can give a backlash to you being an entrepreneur.
So, you need to measure the risk as well. A calculated one is always the best because good situations are not always around the corner.
While its worth taking the risk because if you are able to turn the tables then enjoy the fruits. (Did I forgot to mention about money?).
Goals Both Want to Achieve
As business owners manage companies that serve a selected purpose in their market, their goals typically align with maintaining their profits and keeping steady business.
Thanks to this, business owners might focus totally on the way to streamline their operations to contribute to their existing success.
This will help business owners reach profit goals and go with changes within the market which may affect income v/s entrepreneurs usually have a constant goal of continually expanding their business.
As entrepreneurs’ businesses are new to the markets in which they do business, entrepreneurs need to take other actions that can build a network of professionals, build a customer base, and expand the scope of their business.
This allows you to increase your bottom line over time by identifying which methods are most successful and constantly coming up with new ideas on how to support your business’s growth.
Who’s Good? Businessman or Entrepreneur
Well its not about good or bad. Its always about the passion that an individual has. Both strive to create an impact.
Business owner is not always the entrepreneur but entrepreneur may be a businessman. Business owner in most cases have resources, money and financial support to run the operations while entrepreneurs have to take huge risk of pretty much everything. Time, money, and resources to make their idea successful.
The entrepreneur is usually seen as an innovator, a source of latest ideas, goods, services, and business/or procedures.
Entrepreneurs play a key role in any economy, using the talents and initiative necessary to anticipate needs and bringing good new ideas to plug. Entrepreneurship that proves to achieve success in usurping the risks of making a startup is rewarded with profits, fame, and continued growth opportunities.
Entrepreneurship that fails leads to losses and fewer prevalence within the markets for those involved where as a business owner create companies with existing characteristics. Drive to keep efficient products working and maintain the small business model.
For instance, lets take an example of Uber. The founder continues to expand their venture in so many different ways. Uber is not about ride sharing now. It has expanded to food delivery, parcel delivery and much more.
Also, entrepreneurs have always an exit strategy with themselves. They can sell their website or online store or even physical stores in a market place to regenerate capital and to invest into a new idea.
Let us know in the comment section below which one do you think you are!