Entrepreneur Vs. Small Business Owner… Unraveling The Confusion
Small business owners are the backbone of our financial society. They are the ones creating the new jobs in the United States and making sure our local communities are thriving financially. Small business owners are saving us from an even greater financial mess and keeping more people employed. I read articles and speak at conferences where I hear the confusion between the terms entrepreneur vs. small business owner and decided it’s time to clear this confusion so you can determine who you truly are in the world of business and claim your identity and step into the right shoes.
Small Business Owner Defined
A small business owner has a great idea and brings this idea to their local community to solve a local business problem within their community. The small business owners wants to solve a problem and to make customers happy with their solution to the problem. Their goal is to be of service to customers and the small business owner has knowledge of their customer issue. They know their target audience well and create solutions for their target audience.
So what is the definition of entrepreneur? Entrepreneurs are visionaries. They are big thinkers who come up with solutions to customer problems that have not yet been tested or proven and yet they are willing to gamble and take risks that their customers will like their solutions to their problems. I define entrepreneurship by the entrepreneurs love of risk. They are willing to try on new things and take on new challenges without evidence that these are things their customers wants or needs. The very nature of being an entrepreneur is chasing after many shiny objects instead of focusing on one thing at a time. There is no “slow and steady wins the race” philosophy when it comes to an entrepreneur.
Just the other day I found myself giving a business owner an entrepreneurship definition and talking about how unfocused entrepreneurs tend to be. Their minds are racing ahead and running at the speed of light. The business owner I was speaking with realized how different they were. They told me they spent each day tending to the task at hand and focused on what had to be accomplished that day. They didn’t delegate much to a team and rarely took any risks. They made most decisions and stayed the same course long term. I explained the definition of entrepreneurship meant that the person who owned the business wanted to grow and grow and grow and might eventually want to sell the business. These distinctions are critical between business owner and entrepreneur. If shifting from business owner to entrepreneur sounds enticing maybe this will spark your interest even more… the average entrepreneur salary in 2015 is $178,400 according to sokanu.com. How does that stack up with what you are pulling in from your small business?
So, which are you? Small business owner? Entrepreneur? We need both in the United States to move our economy forward. Now that you understand the two you can decide the role you best fit into.
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