8 Differences Between an Entrepreneur and an Employee
Learn here about the main differences between an entrepreneur and an employee.
Entrepreneur and employee are two contrasting words. However, there has always been a symbiotic relationship between an entrepreneur and an employee in the past and most certainly it will keep moving forward in the future.
Entrepreneur and an employee are two unavoidable parts of an organization. Entrepreneurs won’t be able to grow their startup businesses without employees whilst employees won’t find work without entrepreneurs. Both are interdependent, absence of any one of the two means no business venture.
Keeping aside the similarities, here I have highlighted the 8 fundamental differences between an entrepreneur and an employee.
1. Decision making
Entrepreneurs yearn for freedom and they are totally free to make decisions. This implies that entrepreneurs are always in charge of deciding what, where, when and how to do something that benefits their organizations. There is no one who can poke his nose in the decision-making process of entrepreneurs.
Employees, in contrast, yearn for their job security and they are limited to make decisions. They always live with the fear of losing their jobs if they fail to complete their assigned tasks.
Entrepreneurs are employment providers but employees are the seekers of employment. When entrepreneurs start a business, a number of jobs are generated. Qualified candidates are then hired to fill those vacant jobs. People, in a bid to make a living, seek employment opportunities before they become employees of organizations.
Entrepreneurs pay salaries but employees receive salaries. Entrepreneurs aren’t paid by someone other than themselves but employees are paid salaries by entrepreneurs.
Entrepreneurs, as you may have heard, don’t work under someone while as employees work under Entrepreneurs.
5. Risks taking
Entrepreneurs aren’t scared of taking risks but on the other hand employees, in view of fear of failure, don’t take risks.
Entrepreneurs are the owners of organizations and employees are paid workers of entrepreneurs.
Entrepreneurs bother about profit but employees bother about their salaries.
Entrepreneurs have the authority to decide working hours, salary, assignments for employees, however, employees follow the employment conditions of entrepreneurs.