We use the terms entrepreneur and small business owner interchangeably. Are they the same or is there a difference? I decided to do some research to get answers to these questions. My findings say that an entrepreneur and a small business owner (SBO) are not the same; therefore, we cannot use titles as synonyms.
Even though you start out as a small business owner, sometime along the way you are still an SBO or become an entrepreneur. If you are satisfied with making enough profit to live a comfortable life and keep your business afloat, chances are you are a small business owner. This type of income replaces your income stream, which you earned from traditional employment. You are not really interested in growing or expanding your business. You will most likely keep the business in your family.
Perhaps you are not satisfied with the status quo, and are very ambitious and have the drive to go beyond just surviving. You would fit the definition of an entrepreneur. You will take more risks. Entrepreneurs enjoy learning through the growth and expansion of their businesses. Some establish businesses for the purpose of reselling after realizing a certain amount of wealth. It can take a small business owner a lifetime to gain wealth, compared to roughly five years for a successful entrepreneur.
Another difference is how innovative you are. Small business owners aren’t the “think box” type; while entrepreneurs propose new ideas, innovations and products, as well as develop strategic and creative marketing plans.
If you are the type who works in your business, you will be considered a small business owner. You are more repetitive. On the other hand, if you tend to work strategically in your business, evolve it, change the target markets, if necessary, you are an entrepreneur. Like SBO, it tends not to change markets. Also, their markets may be more general compared to entrepreneurs targeting markets that are more focused.
When it comes to staffing, if you are a small business owner, you may have employees, which would mean having to pay for employee-related expenses; such as, benefits and taxes. As an entrepreneur, you can choose to work with independent contractors instead of having employees work for you.
Some of you tend to have characteristics of both groups. For example, as an entrepreneur, you may choose to keep the business in your family, just like a small business owner, rather than sell it. In addition to having this in common, there are similarities in the operation of their businesses. They both have to do some degree of advertising and marketing, as well as day-to-day administrative duties.
In general, one notable difference is that, as a small business owner, you tend to need motivation; Whereas, if he can be described as an entrepreneur, he is driven by ambition, drive and inspiration. Although there are similarities between the two groups, based on the results of my research, the two terms are not interchangeable and there are significant differences.
