What Is the Difference Between Entrepreneurs and Employees?

Entrepreneurs own and operate a business, while employees work for a business. As a result, entrepreneurs have a vested interest in the success of the company, since their financial goals are directly tied to the business. Entrepreneurs do not have to operate a large-scale business, as even a single person doing odd jobs in the community for money counts.

In the business world, an entrepreneur identifies a new business venture, comes up with the required resources and takes all of the risk in starting this company. Some refer to entrepreneurs as self-employed, since they work for themselves and do not rely on others for a paycheck.

Many business owners take this risk because they no longer wish to associate themselves with the corporate world. As an employee, these individuals would receive the same financial reward, no matter how well the company does. By taking the leap and becoming an entrepreneur, however, these individuals have the chance to make unlimited income, depending on the success of the company.

Some people feel safer in a role as an employee, since a steady paycheck arrives each week. As long as these people do not lose their jobs or the business stays afloat, they will continue to receive payment for each day’s work. For an entrepreneur, no such guarantee exists, since payment depends on how much the business profits.