Entrepreneurs and employees play a distinct, and vital roles in the modern economies. Despite the fact that both entrepreneurs and employees contribute to the growth and development of businesses and economies, they differ in their mindset, roles, and overall on their approach to work. Here, we will make you learn the key differences between the word entrepreneur and employee while explaining their roles, risks, and motivations.
Entrepreneurs are people who create and handle operations of new businesses. They have the capacity to conceive new and innovative ideas, identify market opportunities, secure funding, and creating a team to make sure the execution of their thoughts and vision.
Entrepreneurs may take on a very specific role or on multiple roles in their business organisations. They may wear the hats of a CEO, CFO, COO, marketing head, and more. Their main responsibility is decision making, and taking on the accountability for the failure or success of their business ventures.
Employees on the other hand are those people who are hired by entrepreneurs for various jobs in their organisations. They work within established policies while following the set of rules of regulations created by the organisation management. Every employee has a well defined job structure to make sure the efficient conduct of their tasks that ought to be performed. They are accountable for the tasks they have been assigned to do in their jobs.
Employees do have the accountability to perform their jobs well but they are free of the business outcome. Whether business grows or fails, it isn’t in their responsibility. It is all put on the heads of entrepreneurs.
Entrepreneurs take on the role of a boss while employees as subordinates. They do whatever the roles they are asked to perform in their jobs. They can’t create job description and act as they wish but have to wait for the instructions that descend from the boss.
Entrepreneurs love independence, innovation, and taking risks for profits and mission. Their mindset is different from employees who act according to the rules set by entrepreneurs. Entrepreneurs challenge the old regulations and renovate them with new ways and strategies. Entrepreneurs are often comfortable with uncertainty and risks associated with their business ventures.
Employees always wait for the salaries at the end of their months work. They all care about the salary and an entrepreneur makes sure they get it on time. Entrepreneurs don’t need to wait for salaries like employees. They bag up the business profits as compared to the salary. They care about the financial rewards of their business ventures. More they are capable of growing their revenue, more they will hire and pay their employees.
Employees have a mindset that drives to seek for stability, job security, and a predictable income. They would work in work friendly environments where in they should not face any issue. it can’t work for an entrepreneur as he has to the adapt to the every single possible situation of his or her business.
Entrepreneurs have no value unless they hire employees because in practical employees make sure their vision is translated into the reality by doing different jobs. Entrepreneurs cant single handedly take on jobs on own as machines. That is why entrepreneurs often work towards the happiness of their employees because they are cleaver enough to understand that it is because of their employees who shape their aspirations and dreams.
Employees excute the jobs while as entrepreneurs create the jobs. Employees work on the jobs but entrepreneurs make sure they formulate a particular set of description according to which an employee will perform their jobs.
Employees are allowed to share their ideas and innovation in their organisations but unfortunately they can’t participate in the formulation of policies of the companies. They will be executing the policy created by the entrpreneurs.
Entrepreneurs have a thick skin for tolerating high risks in their business ventures. It is proven by the fact that they invest their energy, money, and time in the creation of business ventures. They are very well versed with the fact that they might either fail or succeed in their business journey.
Employees would never care about the failure or success of the organization they work in but they would always want a secured job and a guaranteed paycheck at the end of their month. They take calculated risks to make sure they financial rewards grow everytime they work. They would always avoid situations that put their financial rewards on the line unlike an entrepreneur who accepts all kinds of situations.
Entrepreneurs are motivated by different purposes like the passion of their idea, to become financially independent and gain the freedom to control their destiny. They are driven by the factors that makes them people who create something meaningful in their life.
Employees aren’t driven by the factors that drive entrepreneurs. They always are driven by the paychecks to make sure they can live a good financial life. They want a secured job and never want to be in situations that create trouble in their career development. They are driven by the career opportunities to make sure they earn respectable income.