Often, self – employment and entrepreneurship are confused to be the same. An entrepreneur and a self-employed person may share the similarity of owning a business but their mindset and approach are completely different.
The distinction between self – employment and entrepreneurship are:
Self-employment: When one works for himself. Maybe as a contractor or running your business.
Entrepreneurship: Process of setting up a business, taking on financial risk, in hope of getting profits in return.
Here we have written 8 points to differentiate self-employment and entrepreneurship –
1. Being self-employed, you have people working for you. Being an entrepreneur, you have people working with you.
2. As a self-employed person, you hire people to work for you. The vision and goal is set by you and it solely depends on you. As an entrepreneur, you have people working with you. You and your team work together on setting and achieving the company goals.
3. Self-employed people are the face of their business. If their absenteeism is constant, their business will significantly go down. This is not the case for an entrepreneur. The business will keep running even if the boss is absent because the employees understand the vision of the business.
4. For self-employed, if the business owner retires or passes away, the business will also die. But if the business owner passes away, the business will still continue. It is not dependent on him to exist.
For example: Even after the demise of Steve Jobs, Apple still continues its business. Or even after Jack Ma retired, Alibaba continues its operations.
5. Self-employed is reserved in his thinking. He does not want to go big. He is just concerned about paying off bills. Entrepreneurs are open minded. They are global thinkers. They understand the advantages of catering to people’s needs on a large scale.
6. A self-employed person is not a risk taker. He fears change. An entrepreneur is a risk taker. He has the zest to explore new opportunities and believes that he can manage and control risk. They understand that with great risk comes great returns.
7. A self-employed person tries to do everything on his own because he thinks he is the best and nobody is better than him. An entrepreneur on the other hand understands and accepts that he can’t everything on his own. He delegates the right work for the right people so that there is efficiency in the work done.
8. Self-employment does not have many requirements and restrictions. Entrepreneurs must deal with a wide range of legal requirements including business registration, insurance requirements and filing taxes.
From this, there is a fine distinction between self-employment and entrepreneurship.
With 8 aspects mentioned, where do you see yourself?