Entrepreneur: What’s in a Definition?

Are you an entrepreneur or a small business owner? Does it make any real difference?

How do we define “entrepreneur”? Bob Reiss, successful entrepreneur and author of Low-Risk, High-Reward: Starting and Growing Your Small Business With Minimal Risk, says: “Entrepreneurship is the recognition and pursuit of opportunity without regard to the resources you currently control, with confidence that you can succeed, with the flexibility to change course as necessary, and with the will to rebound from setbacks.”

Read on to understand the differences between a small business owner and an entrepreneur. Understand how you may be at risk if you do not meet the definition of an entrepreneur.

All business people attempt to recognize and pursue opportunities, but entrepreneurs pursue these opportunities on different terms and without a bit of entrepreneurialism in all of us, continued success will be hard to achieve.

• Entrepreneurs pursue opportunities without regard to the resources they currently control, but small business owners often become protective of their assets because of their success and are hesitant to put their existing resources at risk. Entreprenuers find creative ways to acquire the resources they need to achieve their goals. One of those resources is capital. This creativity is often lacking in small business owners who resort to banks and mainstream financing opportunities. Being creative in acquiring the resources you need to build and grow your business can be very helpful.

• Entrepreneurs pursue opportunities with confidence that they can succeed, but small business owners often have experienced previous failures and become a bit gun shy.

• Entrepreneurs have the flexibility to change course as necessary and are not static but fluid. They continue to seek opportunities and/or different methods of operation. This requires creativity and venturesome tactics. Small business owners think “inside the box” and dwell on the day-to-day challenges while entrepreneurs take creative approaches and think outside of the box.

• Finally, entrepreneurs have the will to rebound from setbacks. A small business entrepreneur becomes a small business owner when failing to rebound from these setbacks.