NIU Differences Between Small Business Owners And Entrepreneurs Discussion

https://succeedasyourownboss.com/are-you-a-small-business-owner-or-an-entrepreneur/

https://www.forbes.com/sites/quickerbettertech/201…

Click on the links above and read the TWO articles.

Choose ONE question below to answer. Indicate your question in the “subject” line.
Respond to three other posts in a timely manner.
Support your answers by using outside sources and citations.

1. Do you agree with either of the 2 authors? Why or why not?

2. Compare and contrast at least 3 differences between small business owners and entrepreneurs.

3. Which differences between entrepreneurs and small business owners are most important? Explain.

THIS CHART IDENTIFIES SOME KEY DIFFERENCES!

Please respond to these 3 posts:

1.)

The 3 main differences we tend to see when comparing small business owners to entrepreneurs are income, ability and willingness to take risks, and the treatment of employees. Many small business owners slowly work their way into a leadership position over time. This makes it so that a stable income is more reliable for the business owner. Whereas an entrepreneur will typically evolve much quicker, consequently making the money less reliable, as there are more risks involved. Small business owners would not delve into high-risk investments because they are after something more long term. Mostly, they are looking into what has already been tested through time, making their chance of success more dependable. A stable living is most likely going to come from a tried and true method, which one can rely on for basic needs such as feeding a family. In order to maximize this reliability, the employees of a small business are given basic jobs and salaries. This is known as the lower level of employment, and it is clearly reflective of the higher leadership positions. People who get employed at small businesses are typically also looking for a stable job/income, similar to their employer. Opposingly, entrepreneurs will mostly lean toward the other side in regards to risk and employment. In order to achieve the wealth that modern day entrepreneurs possess, one must make big, risky investments. This requires the selective employment of individuals with specific talents and or skills. Without such skills, they will not have the necessary resources to build their way up. The most notable difference comes down to the business owner or entrepreneur’s source of motivation, which directly ties into risk-taking abilities.

The most important difference when comparing a smaller business owner to an entrepreneur is the foundation of their cause and willingness to take risks. A lot of times, small business owners merely attempt to make a living for themselves. Whereas entrepreneurs tend to have larger, short term goals in mind. This typically plays off the risk-taker mentality that most entrepreneurs have. The reason being that most successful entrepreneurs got to their position from taking risks and making strategic decisions. Take Elon Musk, the CEO of Tesla for example. He has a high capacity for intellectual thinking, some people even tend to view him as a hyper analytical thinker. However this was not always the case, as Musk himself admittedly had to make many creative and high risk decisions to get to where he is, which were not always regarded as logical. Perhaps the most prominent one being his plan to launch a Tesla into Mars aboard the SpaceX Falcon rocket. Many people do not seem to understand the thought process behind an outrageous display of technology, but Musk is well known for acting in such a manner. When compared to a small business such as a bakery or gift shop, there typically would not be a need for such high-risk activities. Many local consumers are brought in by local advertisements, word of mouth, or something of similar nature. This ultimately makes owning a small business more reliable than being an entrepreneur, yet there is more potential for wealth in entrepreneurship. Regardless, they both have their pros and cons, and it is up to the individual to decide which route is best fit.

2.)

There are actually many differences between being a SB Owner and an Entrepreneur.

Although you might become a SB Owner in the long run, if your primary motivation is to make an impact in the world rather than just making money, you are an Entrepreneur. Mind you, this is not a bad mindset, there are so many things that our world needs and even might need to help us grow. For example, I have a bath, body and candle business, my long-term goal is to reduce carbon footprints and single use plastic usages. I wish to have a more sustainable world and the first step starts with us. Yes, eventually I wish to be able to rely on my business and not have to work to make a living, but right now I’m focusing on the future.

Employment Status

Being a SB Owner, you are your own boss. You need to make decisions that can impact tomorrow whereas entrepreneurship is when you are financially set and don’t necessarily need to worry if there is going to be food on the table for dinner tonight, or the week. Entrepreneurs tend to be involved in multiple businesses, companies, ect.

Investments tend to tie into employment

A lot of the time, entrepreneurs have a lot going on for them, many businesses and investments to keep their accounts set. They can see many day-to-day operations that they are in on and profiting off of, they branch off to so many companies because they aren’t scared of risk and the fact that they could lose a little money because they can fall back onto the other businesses. When you are a SB Owner, you are the primary investor, some people like family or friends might come along the way and help you financially and physically, but YOU are the one the funds and operations are coming from.

3.)

I would say that the crucial differences between entrepreneurs and small business owners are the risk taking profiles and the financial goals.

It’s common to hear of entrepreneurs failing multiple different times until they find a venture that sticks and is able to be profitable. They enjoy the action. That’s why the risk factor is an important difference between small business owners and entrepreanurs. Small business owners want to create stability for the life they live. Many small business owners don’t create gambles and take risks with their companies like entrepreneurs do, and if they do, they are small; small enough to not rock the stability they are striving so hard to achieve. Some small business owners think that hiring an employee is taking a risk, thus resulting in why around “22 million out of the 28 million Americans who run small businesses have 0 employees.”

Entrepreneurs’ and small business owners differ when it comes to the end financial goals. Entrepreneurs value their company (oftentimes companies) as assets. The average entrepreneur balances two business ventures at a time. They spend time developing these companies, just to be sold for the value of the company, and then the process repeats itself. Small business owners are passionate about the business they own and operate and are only really looking to meet or exceed the salary of a corporate job.

The passion that small business owners’s hold is really what sets them apart from entrepreneurs. Small business owners often want to watch their company grow and have plans to pass the company down to future generations, while entrepreneurs are willing to drop the business venture if it isn’t performing well. Small business owners are willing to do whatever it takes to keep their businesses up and running, including taking salary cuts and working holidays.