Small business owners and entrepreneurs: it’s easy to use these terms interchangeably. People are doing so more and more as more Americans are working for themselves. But the truth is, there are slight differences even while there are similarities.
The gig economy has taken over, and millions of people are now working as independent contractors or freelancers to create their own schedule and earn money on their own terms. Overnight, everyone has seemingly become an entrepreneur, and the word is thrown around a lot. But, just because you run a small business does not mean you’re also an entrepreneur.
Let’s walk through the basics of what these two terms mean, and then dive into key differences that set them apart.
A small business owner typically starts a business within their local community to provide a service to a specific target audience. It’s fairly simple: they deliver a product or service to those who need it. Sometimes a small business forms based on an individual’s passion or experience, and they decide to go it alone and make a bigger impact.
Many small business owners depend on a killer inbound marketing strategy, which you can implement quickly when you work with the team at ContentBacon.
An entrepreneur, on the other hand, has big ideas. They love thinking of a new technology or hack that will scale into a larger business. They’re always thinking ahead and networking in their industry. Entrepreneurs are your startup founders and your Silicon Valley tech experts who are looking to create the next Facebook.
Both of these professionals can own a small business, which is where the confusion sets in. But what separates a small business owner from an entrepreneur is the way they think about their company and how they approach business. Let’s walk through these differences in depth:
This is probably the biggest difference between an entrepreneur and a small business owner. Entrepreneurs take big risks and are focused on high-growth. Sometimes these pay off and sometimes they don’t, but the risk is part of the appeal. Small business owners often tend to go with what they know and avoid things that could potentially turn into a business problem. While small businesses can of course be risky to start, they usually have a trajectory that begins modest based on the resources they have and grows steadily as they get more customers.
Entrepreneurs have a vision that goes far into the future. Small business owners focus more on the now and their dream is often just ahead of them and within reach. They are more concerned with day-to-day operations, maintaining healthy cash flow, and successfully filling their role in the community. On the flip side, entrepreneurs are working toward a goal that often goes well beyond the end of the year.
Small business owners know what works for their business and they stick with it, and they know how to establish continued success. They’ve filled the niche they’ve set out to fill and there is no need for them to go further. Entrepreneurs are always looking for the next new thing and are usually frequent visitors of technology and innovation sites. They can’t get enough of what’s new and hot, and that’s often why they are at the forefront of huge movements.
When it comes to entrepreneurs, most of them dream that their company will one day make it big. They don’t necessarily want to run the day-to-day, and may even dream of selling their business someday. Comparatively, small business owners are more sentimental when it comes to their company and wouldn’t dream of handing it over to someone else. They love where they are and they aren’t looking to jump to the next big idea once they’ve gotten what they can out of one venture.
While both entrepreneurs and small business owners can be passionate about what they do, it’s usually for different reasons. Small business owners often do what they do to support themselves and their families, and to have the flexibility to work for themselves. Entrepreneurs are often after change. They want to make big waves in the world. They want to make their mark. And they want to be heard. It’s not enough for them to simply be successful, and money often is not what they’re after. What they want is to make a difference.
The bottom line: entrepreneurs take more risks and are more focused on the big picture than small business owners are. The good news is that we need them both. Not every company needs to turn into the huge success that entrepreneurs often imagine when they get started. Some are better left small, and that’s where they stay. We need local businesses in our communities just as much as we need innovative startups.
If you’re thinking about starting a company or you’re already a business owner, consider which route is best for you. You may realize that your vision, goals, and values align more with that of a small business owner versus a riskier entrepreneur. Or you may quickly come to terms with your big-picture passion.
Whatever you call yourself, it’s important to focus on what you really want and the steps that will get you there. It’s not always easy to start a business, but it will all be worth it when you’re able to work for yourself and build something you’re proud of.
Whether you are a small business owner or an entrepreneur, contact ContentBacon to learn how our inbound marketing services can help you reach your goals for the future.
