It is undeniably challenging to become an entrepreneur or business owner as both expertise requires diligence, self-discipline, patience and an opportunistic mindset. Both entrepreneurs and business owners manage a business but they differ in terms of goals, strategies, offerings, systems and the like. It is imperative to determine how these two professions differ from each other so that you will be able to choose which position is the most suitable for you. Let’s find out its separate definition.
Business owners are the people who own a business, from the word itself. They usually offer products or services to consumers and get a single source of income once the business has been successfully implemented. As a business owner, he or she personally manages the daily operations to ensure that it will generate consistent profits. Business owners have the most deep understanding about the industry and market he or she is dealing with even from the start of running the enterprise.
On the other hand, entrepreneurs are more innovative and competitive since they tend to focus on product or service innovation. Entrepreneurs often start an enterprise using their unique business idea and search for interested investors to finance its launch. This role is riskier since it is a new entrant with limited scope of network and resources so entrepreneurs need to exert more effort and task. The cost of production and promotion are also expensive as it will take time to build and capture customer’s trust and interest. Before obtaining the return of investments.
In order for you to gain a concise knowledge about their main differences, let’s break it into the following categories.
THEY DIFFER IN TERMS OF;
1. Goals and Objectives
A consistent flow of income and stable business is what a business owner aims for. Hence, they are keen into managing their own companies or businesses and find out ways to expand their firm to create numerous sources of income. For instance, as a property owner, you may let property managers in Alabama look for tenants who can rent your assets monthly. Aside from that, you can also conduct an Airbnb system to one of your properties which will give you a competitive cash flow either per day or per week. In that way, business owners are able to expand their portfolios and reduce the damage of net loss when the market unexpectedly changes
On the other side, entrepreneurs have the eagerness to expand their current firm and achieve higher net income. They are busy operating their company by gathering the best set of experts who can help them grow the firm. It encompasses the level of market share and customer engagement towards their brand. Creative and efficient ideas are valuable to entrepreneurs since it serves as the source of methods to enhance the firm’s weaknesses and maintain its strengths to effectively obtain good reputation and higher market shares.
2. How they started
Starting a business through inheriting or buying an existing business system or firm is how a business owner can start. He or she might belong to a family who owns a prestigious business or company which he or she can later inherit or come into a particular position. A business owner may also purchase a franchise and run it himself or hire employees that will manage it. That’s how business owners can start.
Whereas entrepreneurs started an enterprise from scratch or original business idea. Hence, they are liable for all initial duties and categories in a business to execute it successfully. Entrepreneurs can start their plan anytime and anywhere according to their will and they are the primary owners of the firm that they would like to establish.
3. What Business Owners and Entrepreneurs Offer
Typically, business owners offer an existing product or service to meet the needs and wants of the common market. They will support the existing market through providing the products or services they demand. As long as the consumers are satisfied, business owners can still explore additional offerings to add more value to their existing customers.
Unlike entrepreneurs, since they are inventing new business ideas or systems, the majority of them aim to offer a unique business blueprint. It focuses more on differentiation and value innovation that has a high chance of capturing larger market share. Entrepreneurs are more aware of their missions and visions as they are passionate about bringing a beneficial idea to both consumers and sellers.
4. Who Manages the Business or Company
Employees and staff are the main human resources of a business. Thus, business owners hire them and seek professional guidance from experts involved in the enterprise like board of directors and shareholders that have an important decision in managing the company. The strategic business plan usually came from them.
Unlike entrepreneurs, they have the option to work closely with a number of professionals only. Since entrepreneurs started from scratch, they often tend to have a dominant control over decision making and its operations. It means, being an entrepreneur is being their own boss or master. Although they still look for some assistance from experts, they have flexible business options.
