The differences between entrepreneur vs. small business owner lie in attitudes, personal characteristics, backgrounds, and the legal statuses of their companies. Entrepreneurs are generally owners of businesses, but not all business owners are entrepreneurs. Each title is associated with a different type of person and company, and the title you adopt helps to define your business and you. Here are some key differences to help you decide whether you are an entrepreneur vs. small business owner.
Legal Status
One consideration of entrepreneur vs. small business owner is that entrepreneurs usually file articles of incorporation to incorporate their companies. This legally separates an entrepreneur’s personal assets from the business, allowing greater freedom to take risks in expanding the company. On the other hand, small business owners tend to keep their companies unincorporated, accepting the risk of personal liability if they encounter financial difficulties.
Levels of Risk
The amount of willingness to take risks is another key distinction between an entrepreneur vs. small business owner. Entrepreneurs tend to seek higher profits and as a result are willing to take more risks. For instance, they might promote a mobile app or get into digital marketing. In contrast, a business owner is generally knowledgeable about the industry they work in and takes a more staid approach to establishing a company.
Skill Sets
Entrepreneurs tend to have more intellectual acumen and are skilled at analytical reasoning, so they are more likely to create a challenging and innovative company. Business owners prefer more practical occupations such as contracting work or plumbing, and they usually have the skills that complement their company’s needs.
Personality Traits
Because small business owners often perform manual work in established industries, they tend to prefer stability and avoid taking chances. On the other hand, entrepreneurs exhibit the confidence, abilities, and high self-esteem to take risks if it means they can obtain greater rewards and maintain control of their own futures.
For more advice on distinguishing between entrepreneur vs. small business owner, contact Hemingway Financial Group.