Entrepreneur or Business Owner - What is the Difference

Are you a business owner or an entrepreneur? The difference between the two is more of a mindset. Let’s look at Aaron and Kyle, twin brothers who start a family restaurant, as an example.

The Business Opens

Kyle has an idea for a family restaurant he’d like to open. He’s done all the background work, figured out the business plan and is all set, except for the initial funding. His brother, Aaron, is a physician at the hospital. He’s been looking for some place to invest a bit of money and is willing to invest in the restaurant and allow his brother to take care of running it. They agree on details and the restaurant is opened. Unfortunately another family restaurant opens within a week on the same block. Both restaurants are struggling to stay afloat.

Kyle

Kyle has spent years planning for this restaurant. It is his dream and he has been spending sixteen hours a day there. He’s hired the best cooks and even dons an apron himself from time to time to see that his customers are happy. He wants this restaurant to succeed. As he sees it losing money daily, his thoughts turn to what he can do to make his restaurant stand out above the other one. Failure is not an option in his eyes.

Aaron

Aaron’s accountant comes to him concerned over the money he is losing on his investment. Aaron talks with his brother, explaining he had expected to profit from his investment. Aaron tries to convince Kyle to either close down the restaurant or change the focus so it is not in direct competition with the other family restaurant. He can’t understand why his brother would want to hold onto a failing business.

The Difference

Kyle is a business owner and Aaron is an entrepreneur. It doesn’t mater which individual does the actual day-to-day running of the business. The significant difference between a business owner and an entrepreneur is where their emotional investment is. A business owner wants the business to succeed. He will do everything he can to bring about this success. He won’t consider changing to another product. On the other hand, an entrepreneur wants to succeed. He doesn’t care what product or service will achieve this goal and is always willing to consider a complete different direction should one direction prove unsuccessful. Do you want your business to succeed or do you want to succeed?

This is what determines the answer to whether you are a business owner or an entrepreneur.

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