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.

An entrepreneur and an employee are two unavoidable parts of an organization. Entrepreneurs won’t grow their startup businesses without employees, while employees won’t find work without entrepreneurs. Both are interdependent, the 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 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. No one 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.

2. Employment

Entrepreneurs are employment providers, but employees are the seekers of employment. When entrepreneurs start a business, several jobs are generated. Qualified candidates are then hired to fill those vacant jobs. In a bid to make a living, people seek employment opportunities before they become employees of organizations.

3. Salary

Entrepreneurs pay salaries, but employees receive salaries.¬†Entrepreneurs aren’t paid by someone other than themselves, but entrepreneurs pay employees salaries.

4. Work

Entrepreneurs, as you may have heard, don’t work under someone while employees work under Entrepreneurs.

5. Risks taking

Entrepreneurs aren’t scared of taking risks, but on the other hand, employees, because of fear of failure, don’t take risks.

6. Ownership

Entrepreneurs are the owners of organizations and employees are paid workers of entrepreneurs.

7. Bother 

Entrepreneurs bother about profit but employees bother about their salaries.

8. Authority

Entrepreneurs have the authority to decide working hours, salary, and assignments for employees; however, employees follow entrepreneurs’ employment conditions.

Sarah Contreras

The author holds a bachelor's degree in Communication with expertise in certain fields like media and marketing. She currently works as a web content contributor for ANC Delivers, one of the fastest fleet home and corporate delivery services in Australia.