Small business owners contribute a lot to the U.S economy employing 57% of the country’s private working population and in 2011 produced over $ 900 billion in total revenue to the country. Small businesses provides employment to the vast majority of Americans of working age, they are a source for creativity and new ideas in their industry and they support the economy of their communities. It is safe to say that the U.S needs small businesses in order to provide jobs and fresh ideas in the workforce as well as opportunities for others to succeed which is not just workers but employers as well. There are two well-known terms that can be used to label employers which are entrepreneurs and small business owners but the two terms are not always interchangeable. People can’t really tell the difference between the two even though they do the same job but here are some of things that sets them apart from one another.
Small business owners are more connected to their community and try to resolve issues within it. They are also usually more acquainted with their customers so they know them better and know they ins and outs of their business. Their role is to keep their customers satisfied and they know how to do it through great ideas. Entrepreneurs on the other hand given their role are more distant from their customers. They also like to think outside the box and their visions are much bigger generally speaking. They like to come up with new ideas that haven’t been tested, though out enough and are unsure if they would work but to them that’s the fun of it.
Small business owners like to be aware of anything that might come their way in the future. They prefer stability and they take initiatives when it comes to their decision making often calculating, analyzing and weighing the options that are before them before coming to a final conclusion if they now what the potential end result could be. The rewards are small but it keeps their business running. Entrepreneurs on the other hand like to plunge themselves into a realm of uncertainty. For them the more risk you take the greater the reward.
Small business owners though not all but when compared to entrepreneurs are small term planners. They like to complete daily tasks and finish their weekly responsibilities which are managing their employees, interact with their customers, maintaining their inventory and manage cash flows and other jobs that keeps their business afloat. Entrepreneurs think a little more long term leaving the task of running their business to people working under them. You can think of small business owners living in the now and entrepreneurs in the future.
Small business owners like what they do for a living and the focus is not strictly about making profits because they love being small business owners while entrepreneurs are mostly focused on expanding their business. Although they like small business owners love what they do they mostly leave the responsibility of running their business to other people so their focus is more on having a business that can run without them. Most of the time they are surrounded by experts who they rely on helping them make sound decisions while small businesses owners ( for those that are employers) prefer to work with their employees or handle other responsibilities.
Though they technically do the same job small business owners and entrepreneurs have different ways of going about running their business. Small business owners are generally the runs who support the economy while entrepreneurs have visions to move it in the right direction. Both are essential to the the business world operates so knowing what they do different from each other now lets you know where you stand as an employer running your business.