Quite a few people consider small business owners and entrepreneurs to be the same thing. In fact, they are not actually equal.
While it’s true that many small business owners are entrepreneurs, that’s not always the case. Also, not all entrepreneurs run small businesses.
If you’re wondering whether you’re a small business owner or an entrepreneur, then you might find the following ideas useful:
Small Business Owners: These are typically owners of businesses employing under 50 people. They offer a service or product for customers, and they have a clear market that they try to serve for profit potential.
Entrepreneurs: The popular conception is that entrepreneurs dream up revolutionary concepts and embrace unmitigated risk to win it all. While entrepreneurs do face more risk, they know what they’re getting into, relying on creativity to compensate for the uncertain prospects and limited resources.
Entrepreneurs tend to focus on the growth of their business, and they see it as an asset. They don’t usually plan on keeping it small because they want to make more money. Many entrepreneurs grow a business so they can later sell it and move on to their next ideas.
A small business owner might be more likely to get sentimental over their company. They do plan on growth and more sales, but they are more likely to thrive in the ownership aspect rather than the pursuit of profit. Some might even choose to keep their business small so they don’t get lost in things. Ownership transfers might happen inside a family instead of to whoever is the highest bidder.
Entrepreneurs are more likely to take risk. The status quo never suits them. They want to make a big impact, make better products, roll out improved services, and hit larger markets. While having a reputation for blind risk, they rarely actually do so. Calculated risk is the name of the game.
Small business owners are more likely to stay the course. They don’t totally avoid risk, but they are far more cautious. They consider all the potential downsides, and they seek slow and steady progression rather than explosive episodes of growth.
Another area that separates business owners from entrepreneurs is that entrepreneurs tend to get more technical. Small business owners are more practical. They also have daily and even weekly tasks that they go about, whereas entrepreneurs are looking ahead past the horizon.