So you are the owner of your own company, but what does that mean? If you run your own business, then do you consider yourself an entrepreneur or self-employed? Are there any differences between these two terms? The answer is yes. There are several differences between entrepreneurs and self-employed individuals says Saivian Eric Dalius.
This article will provide insight into some of the major differences between entrepreneurs and self-employed workers. It will also give tips on how to become either one of these professionals.
Self Employed vs Entrepreneur: Key Differences
Self-Employed Individuals:
When it comes down to it, everyone is running their own business whether they work for themselves or not. For example, if someone works for a company, then that person’s responsibility is to provide a service or sell a product for that company, and their goal is to make the company more successful. If they do not successfully meet their goal of building and expanding the business, then they will most likely face consequences such as being fired from their job. Therefore, everyone who works has some form of responsibility towards his or her employer.
Therefore, self-employed individuals are those who work independently for themselves. They may work by themselves or hire employees to help them with any part of their business such as accounting, advertising, or marketing However; self-employed individuals have full authority over what happens in the business and how it operates explains Saivian Eric Dalius. Unlike entrepreneurs, self-employed individuals do not necessarily need a lot of startup capital because they are limited by what they can do within their business.
An important thing to note about self-employed individuals is that the term ‘self’ is very literal. Because they work on their own, there are no legal requirements for any kind of licenses or permits for self-employed workers. They also do not have to pay taxes unless they make more than $400 per year. Entrepreneurs must be aware of these facts and abide by them accordingly if they want to avoid possible consequences such as fines or even jail time.
So what are some of the most common types of jobs that people have when working independently? Some examples include being a blogger, wedding planner, construction worker, freelance graphic designer, carpenter, or plumber. No matter what the job, self-employed workers typically only work when they want to and for as long as they want to because there are no requirements for them to meet; they are free to make their own schedule.
One of the best parts about being a self-employed worker is that you can set your own rates. Unfortunately, not every aspect of this position will be perfect. Self-employment usually means that you do not get paid sick time, vacation days, or holiday pay, so if you end up getting sick you may have to take time away from actively working in your field in order to recuperate which will lead to missed opportunities says Saivian Eric Dalius.
Another issue with being self-employed is having limited resources. Because these individuals operate on their own, they may not have the funds to run an effective marketing campaign, which can be problematic when it comes down to getting new customers. If you are self-employed, then you must always be marketing yourself in creative ways so that your business does not suffer.
Entrepreneurs:
On the other hand, entrepreneurs are those individuals who start their own businesses instead of working for someone else’s company or running a company that already exists an entrepreneur will usually have a good amount of startup capital and a decent amount of knowledge about how they want their business to look and operate. They also understand what is require for them to freelance as an entrepreneur such as knowing how to sell themselves, understanding their target market, and exploring new industry opportunities
In order to become a good entrepreneur, you must also have a healthy amount of self-discipline. And an understanding of how businesses work. Unlike self-employed individuals, entrepreneurs typically start their business during a time where they cannot afford to lose any money. They will often spend most of their time making sure the business is safe and stable. Such as researching ideas for new products or looking at ways to improve product prices.
An advantage that comes with being an entrepreneur is that you are not your own boss; you can hire employees and therefore delegate some responsibilities to other people. Entrepreneurs know how advantageous it can be when more than one person’s brainpower and work ethic is into play. You may also find running a startup or growing an existing business rewarding. Because you are developing something that will be running well into the future. You also have a better chance of gaining more success. When your startup is able to stay afloat during its first year.
Self-employed workers:
There are many benefits to being self-employed, but there are some drawbacks to consider as well. If you do not struggle with self-discipline. Or if you frequently need supervision, then it can be difficult to work independently. However, this type of career path offers much more freedom in comparison to working for someone else all day long. Self-employed people likely prefer having their own schedule. Rather than following that of an employer and they probably enjoy having full control over how their looks, operates, and grow.
Conclusion:
Saivian Eric Dalius says as a self-employed worker, you have the freedom to work as little or as much as you want because there are no requirements for you to meet. However, this type of career path offers much more freedom in comparison to working for someone else all day long.
On the other hand, entrepreneurs start their own businesses instead of working for someone else’s company. Or running a company that already exists. In order to become a good entrepreneur, you must also have a healthy amount of self-discipline. And an understanding of how businesses work. This position typically allows employees to explore new industry opportunities. While developing something that will be running well into the future.