Wanting to establish a business, be it even a small sized operational store during one’s active years, has been on the To-Do list of quite a lot of people. But these days, with many avenues opening up, thanks to easy Internet availability, advancement in technology and easier modes of finance and connectivity, self-employment is on the rise too. And many individuals, especially the youth are seeing this as an opportunity to earn through self-employment as their primary source of income.
But what essentially separates the two? What is the difference between an entrepreneur and a self-employed individual? Let’s see a few key differences between them.
Concept
Theoretically, a businessman or woman is someone directly involved in trading, manufacturing, selling and other such activity, which can be carried on even in his or her absence by someone else on his or her behalf. The entrepreneur can even be illiterate or unskilled and still carry on massive business operations.
However, a self-employed individual is someone who uses his or her skill, ability, knowledge, qualification or talent to earn livelihood. For example, Shakuntala Devi, the famous mathematical genius utilized her talent to earn a source of income for herself and her family.
Focus
For an entrepreneur, the focus is on creating and sustaining or expanding the business. A business is another identity and not to be confused with the entrepreneur. He or she may own the business but are not the business themselves.
But for a self-employed person, the focus is on finding newer employment opportunities. He or she has to ensure remaining employed with a steady inflow of income, by repeatedly creating opportunities to exhibit talent or knowledge.
Also Read: What Is The Difference Between Company And Brand
Risk
Risk-taking ability is a must have trait to become entrepreneurial. A businessman or woman operates in an environment of uncertainty and is more tolerant towards financial risk. But a self-employed individual deals in what he or she knows, thereby steering clear of risks or professional hazards.
Advantages and Disadvantages
A major advantage in business is that one can delegate tasks to other individuals. You won’t stop earning if you stop working. And even after death, one can have successors in business.
However, a self-employed has to do everything on his /her own. No other person can work the same way. Also, once you stop working, you stop earning. In case of death, one cannot take up or do the work exactly as it is meant to be.
But being self-employed has advantages too.
Startup costs are few. Work is majorly on talent and skill. There is a lot of independence to do work as per his or her choice too. In some cases even schedules are flexible.
However, in business, costs involved are higher. It needs teamwork and alignment. There are various business risks involved.
So, as we see, both have their own share of pros and cons. Both the concepts are different but many a times, they are interchangeably used.
