The terms entrepreneur or small business owner are interchangeable. Is it the same thing or different? To answer these questions, I conducted some research. My research shows that entrepreneurs and small business owners (SBOs) are two different things. We cannot therefore use these titles interchangeably.
You start as a small business owner but you end up becoming an entrepreneur. A small business owner is someone who is content to make enough money to support your family and live comfortably. This income replaces traditional income streams. Your business is not worth growing. Most likely, you will continue to run the family business.
Perhaps you don’t like the status quo. Or maybe you are ambitious and want to do more than survive. An entrepreneur would be you. You are more likely to take on risks. Entrepreneurs love learning by growing and expanding their businesses. After achieving a certain level of wealth, some start businesses to resell. A small business owner may not be able to achieve wealth in a lifetime, while a successful entrepreneur can do so in approximately five years.
The other difference is your level of innovation. Entrepreneurs are more innovative than small business owners. They think outside the box and come up with new products, ideas, and marketing strategies.
You would be considered a small-business owner if you work in your business. You are more predictable. Entrepreneurs are those who tend to work strategically on their business, evolve it, change target market, and if necessary, become more repetitive. SBOs are not able to change the markets. Your markets might be wider than those of entrepreneurs who are more specific.
You may need to pay employees-related expenses if your business is small. Entrepreneurs may prefer independent contractors to employees.
You may be one of the two. You may decide to keep your small business in the family as an entrepreneur rather than selling it. There are many similarities between the two of you in how you run your businesses. Both of your businesses will require some level of marketing and administration.
A notable difference between the two is that a small-business owner needs motivation, while an entrepreneur can be described as someone who is driven, ambitious, and inspired. Despite similarities between the two groups, my research shows that they are not interchangeable and there are important differences.