Small businesses are essential to the economy. They contribute by creating jobs, coming up with creative solutions and methods to old problems and, perhaps most importantly, they usually keep money in their own communities. Removing small businesses from the economic equation would result in a disaster. Entrepreneurs are equally just as vital to the economy. So how does a small business owner differ from an entrepreneur? First, an entrepreneur can have a small business but the differences begin with the approach to running the business and leadership styles.
How They Think: Entrepreneurs tend to be long-term thinkers and planners. They take into account what the business will do in the future. They will hire people that will take the responsibilities that come with the day to day operational tasks. Small business owners will tend to be focused on the short term tasks. These are the things that need to be done now. They’ll manage employees, seek out and network with customers, and just ensure that everything is running smoothly.
Lightbulb Moments: Small business owners will have ideas and they’re pretty good ideas. Most of their ideas tend to be focused within their local region. They have a good grasp on their business and their target audience. They know what will, and won’t, work with their customers so that the customers are left satisfied. Everything they do is geared towards the customers. Entrepreneurs have ideas, too, but they’re just on a bigger scale. They like to think BIG. They like to dream BIG. Entrepreneurs have ideas that may not even work, on any level, and good entrepreneurs still get excited if these big ideas they have may not even be possible. It just drives them more.
To the Future: Both would like to see their businesses grow, just in different ways. An entrepreneur wants the growth to reach levels they dreamed of. Their focus is that the business grows and grows so that it becomes attractive to potential buyers, even if they’re not entertaining that thought. They want to scale their business up and recruit a team of experts to help them accomplish that. A small business owner is quite the opposite. Yes, they would like growth with revenue, but they would never think about the possibility of selling the business. They are more likely to hand it off but still keep it in the family or to someone they truly trust.
Risk Management: This can sometimes be the biggest difference between a small business owner and an entrepreneur. Small business owners don’t like unpredictability. They want to see what’s coming up over the horizon. Every decision is well thought out with a clear and defined result laid out. Simply put, entrepreneurs love risk. They are more apt to take those leaps of faith especially if the effort they put in will be worth it.
The economy requires small business owners to hold it together. It’s entrepreneurs that will help move the economy forward. There isn’t one that can be viewed as better. Both are essential. Which one are you?
I hope you found immense value in my article on The Entrepreneur vs The Small Business Owner! If so, I think you’ll really like my recent article on A Day in the Life of an Entrepreneur!