Entrepreneur Or Small Business Owner: Which One Are You?
Among businesses, there’s confusion between the terms Small-Business Owner and Entrepreneur. While both have small businesses, the styles of leadership and the business planning is where they differ. It is important for you to understand this before you apply for a small business loan. Ask yourself these four simple questions to understand which one are you?
Q1. Do you have a sustainable idea or a big idea?
It sounds similar but the difference is in the approach. A sustainable idea helps solve a problem in the community, city, state or country. These business owners know their target audience and what will make the customers happy. A big idea is one which hasn’t been done yet. These business owners are unsure about the feasibility and implement-ability of their ideas; this excites them.
Q2. Do you love risk or are you risk-averse?
This is applicable for decisions made with respect to the business. Do you jump in without calculating the probability of a favourable outcome? Or do you like to know and be prepared for what is coming next?
Small business owners are relatively risk-averse while entrepreneurs love risk.
Q3. How far in the future do you plan?
Small business owners plan about the things they need to finish in the current week. They create to-do lists, manage daily operations and ensure that their customers are satisfied with every interaction.
Entrepreneurs, on the other hand, think more about the future of the company. They prefer to employ people to manage the day-to-day operations.
Q4. Are you sentimental about your business?
This is one of the strongest characteristic of a small business owner. They would never plan or want to sell their business to anyone else; with the exception of family. They would want to be a part of it regular functioning and love to see it grow like their own child.
Entrepreneurs want to grow. They are not flustered with their business running without their presence and usually prefer to hire experts to do the regular tasks.
India needs small business owners to steady the economic ship of the country and entrepreneurs to push it forward. Both are equally important in their own right but knowing the difference can help you plan your business loans, operations and planning effectively.