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Vital Factors That Differentiate Entrepreneurs From Employees

Factors That Differentiate Entrepreneurs From Employees
An entrepreneur is like the captain of the ship; he should possess leadership qualities, know how to motivate others and also to multitask at the same time. But what are the qualities, if any, that set him apart from an employee.
Neha B Deshpande
Last Updated: Dec 04, 2018
"I think a great entrepreneur is learning every day. An entrepreneur is somebody that doesn't take no for an answer - they're going to figure something out. They also take responsibility. They don't blame anybody else. And they're dreamers in one sense but they're also realistic and they take affordable steps when they can."
― Damon John
The basic distinction between an entrepreneur and an employee lies in their attitude and approach towards different things. A basic law of economics states that profit is the reward for risk bearing. Life is insecure, but there are a select few who dare to come out of their comfort zones and risk their monthly pay checks to start something of their own.
Well, to develop an entrepreneurial mind, you should be open to new ideas and not think of the limitations involved. An analysis of the employee vs entrepreneur mindset reveals a few more distinct differences that have been listed here.
Risk-taking Ability
It has been observed that employees are more inclined towards security and stability, and have a lesser capacity to bear risks.

An employee delivers what he is expected to and expects his monthly paycheck in return.
This does not imply that an employee aims low, but his promotion and growth in the organization depends on his bosses.
As mentioned earlier, entrepreneurs set the course of their organization or company. They take major decisions when it comes to expanding their business.

An entrepreneur is willing to forgo security, in terms of liabilities, for the growth of the organization. He is willing to take greater financial risk for increased business gains.
Social Skills
An employee primarily develops social skills for improving his employment options.
An employee will usually improve contacts with people that belong to his field/expertise.
An entrepreneur needs to have multiple skills and cannot stick to merely specializing in his field.

He needs to have social skills to interact with employees, understand the law, maintain trade relations with the outside world.
Attitude and Thought Process
An employee may refrain from thinking unconventionally, and usually, his job tends to involve following instructions.
Entrepreneurs tend to think out of the box, and also execute such ideas. They may also motivate employees to think differently.
They have the ability to spot potential business opportunities and tap the best of resources for the growth of the organization.
Assessing a Situation
A typical employee may lack the skill to accurately assess a situation and may have limitations when it comes to decision-making.

He may feel intimidated to push his limits and share his ideas with his employers.
Not everyone possesses entrepreneurship skills, and it takes a real nerve to become self-employed especially if one does not have a backup plan if the business fails.

A true entrepreneur will know exactly how much to push so that he does not jeopardize his employees. He has to strike the right balance, and not get swayed by emotions.
Vision and Foresight
Employees are led by their employers vision and direction, like sailors follow directions of the captain of the ship and depend on his foresight.
Entrepreneurs have a vision that employees may lack. They foresee the trends in the market, study and know how to best use them for their organization's benefit.
Work-Life Balance
An employee has a defined task and will generally perform duties that pertain to his position or profile.
An employee usually has fixed working hours and is entitled to paid holidays and other employee benefits granted by laws and legislation.
Entrepreneurs do not have a specific task, job or profile. They do not stick only to regular working hours but may have to attend to business related matters at any hour of the day (or night). No doubt, they more than willing to do it, because it is their business.
While an entrepreneur may take a holiday, without having to apply for it, in reality, he ends up sacrificing his vacation for the sake of the organization.
An entrepreneur is not merely a businessman he has to be accountable, and be willing to take risks, and act as a cover for your employees. However, the leader and the follower, both are equally important. Without a leader, the employee will have no direction, and a leader cannot run his business alone without any employees.