9 Differences Between an Entrepreneur and an Employee

Knowing what differences separates or distinguishes entrepreneurs from employees is crucial for every student studying business management.

Entrepreneur and employee are two contrasting words. However, there has always been a symbiotic relationship between an entrepreneur and an employee in past and most certainly it will keep moving forward in future.

Entrepreneur and an employee are two unavoidable parts of an organisation. 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 9 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 organisations. 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 loosing their jobs if they fail to complete their assigned tasks.

2. Rules and Regulations

Entrepreneurs create rules but employees follow rules. This indicates that entrepreneurs have full control on setting rules and regulations for everyone sharing involvement in their organisations whilst employees have to do exactly what their employers expect from them. In short, an entrepreneur is the rule creator and an employee is the rule follower.

3. Employment

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 organisations.

4. Salary

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

5. Work

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

6. 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.

7. Ownership

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

8. Bother 

Entrepreneurs bother about profit but employees bother about their salaries.

9. Authority

Entrepreneurs have authority to decide working hours, salary, assignments for employees, however, employees follow employment conditions of entrepreneurs.

Rais Dar

About Author:

Rais Dar is the founder and CEO of Startup Daily Tips Magazine. He spends most of his time collecting tips, insights and advice while meeting entrepreneurs throughout the world.

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