Entrepreneur vs. Business Owner: Key Differences and Which Path to Choose

You ever notice how we toss around the words ‘entrepreneur’ and ‘business owner’ like they mean the same thing?

We’ll say, “Oh yeah, she runs her own business, she’s such an entrepreneur!” Or, “He’s an entrepreneur,” when really, he might just own the local café down the street.

While used interchangeably, these two terms aren't actually the same thing. There’s overlap, sure, but the mindset is totally different.

This guide will tell you everything you need to know about the differences between entrepreneurs and business owners. 

By the end, when someone asks you what you do for a living, you won't hesitate.

What is an entrepreneur?

An entrepreneur is someone who starts something from nothing. They see a gap, an idea, or a problem, and think there's a new business venture that can come from it.

Many entrepreneurs take the leap, often without any safety net. They pour in their time, their savings, and a whole lot of energy, knowing there’s no guarantee it’ll work.

They’ve got this mindset that’s all about challenging what already exists. They don’t just join industries, they shake them up. They question how things are done and try to create new ways of doing them.

You could call them dreamers, innovators, the people who turn wild ideas into real businesses.

Sometimes, they’ve got investors backing them, people who believe in their vision enough to take a risk, too. But you don’t have to build the next Apple or Tesla to be an entrepreneur. If you’ve started something, anything, from the ground up, and you’re making it happen? You’re already part of that club.

What is a business owner?

A business owner is someone who owns a business entity, maybe it’s a small shop, an online store, or even a big company with many employees and board members.

They might’ve started it themselves, inherited an existing business, or bought an existing company that was already running well. Either way, they’re the ones responsible for the day-to-day operations.

Unlike entrepreneurs, who tend to chase new ideas and new markets, small business owners tend to focus on stability. They care about building a successful business through consistency, quality service, and trust. While entrepreneurs assume big risks to create something entirely new.

You’ll find small business owners everywhere, from store owners to self-employed freelancers running an unincorporated business from home. They might not be chasing venture capital or launching a new business venture every year, but they’re absolutely the backbone of every community.

Key differences between entrepreneurs and business owners

Understanding the difference between an entrepreneur and a business owner is really important if you want to know how business ventures succeed.

Entrepreneurs and business owners may both own a business, but their mindsets, focus, and approaches are very different.

Here's a table explaining the difference between business owners and entrepreneurs:

As you can see, there are some major differences between the two, and if you want to be your own boss, knowing which one you are is the first step.

Pros and Cons of being an entrepreneur vs business owner

Let’s take a look at the good and not-so-good stuff about being an entrepreneur versus a business owner.

Entrepreneurs

Pros:

• Freedom to chase new ideas and explore new markets
• Ability to launch new companies and new business ventures
• Chance to innovate and disrupt the status quo
• Potential for rapid growth and building a successful company
• Exciting, high-energy work with big risks and big rewards

Cons:

• High risk-taking
• Long hours, stress, and limited resources
• No guaranteed success, even with new technology or business ideas
• Constant pressure to innovate and stay ahead in the market
• Success depends heavily on entrepreneurial activities and adaptability

Business owners

Pros:

• More stability and predictable income
• Control over daily operations and being your own boss
• Ability to grow an existing company gradually and sustainably
• Focus on keeping customers happy and maintaining business ownership
• Can rely on proven business models and limited resources

Cons:

• Slower growth and fewer opportunities for disruptive innovation
• Less potential for rapid wealth compared to entrepreneurs
• Responsible for daily operations and maintaining customer base
• Can feel routine or limiting if you crave new business ventures
• Growth depends on small business owners focus and incremental improvements

Business tools for business owners

Running your own company is no joke. You’ve got daily operations, staff, customers, stock - it’s a lot. If you don’t have the right tools, things can get messy fast and it'll be hard to make your business grow.

A POS system is a lifesaver. It handles payments, tracks inventory, and keeps your business running smoothly. You can see what’s selling, what’s running low, and make smarter decisions, all in one place.

Even small business owners running a shop or a small business can save hours every week. It frees up time to focus on your customers, improving services, and growing your existing business.

Epos Now, for example, makes all of this simple. We take care of the boring stuff in the background, so you can focus on running a successful company and being the own boss you set out to be.