The Difference Between Entrepreneurs and the Self-Employed

Often seen as one in the same, an entrepreneur and a person who is self-employed may share the similarity of owning a business, but beyond that they begin to stray down vastly different paths.

Defined below, we can see where these two roles intertwine as business owners. But when taking a deeper look we see the major difference being that the self-employed are the business, where as an entrepreneur operates a business.


Self-Employed - Working for oneself as a freelancer or the owner of a business rather than for an employer.

Entrepreneur - A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Typically the majority of business owners fall under the category of “self-employed”. They begin with a skill or particular set of skills and find that the opportunity to make money arises. This is where the crash course in business begins. From insurance and licenses to accounting and marketing soon many owners are smothered in the infinite amount of hours required to keep the business alive.

While many individuals are still the “owners” of the business, they typically carry all the responsibilities of an employee. This combination of duties can create many limitations on the success of the business. Essentially working anywhere from 2-10 jobs often the self-employed are overworked, underpaid and lucky to get a few days off a year.

On the other hand an entrepreneur is all about risk and reward. They think outside the box for the best ways to succeed and move on to their next venture. While the businesses might be of interest it is really the passion of the start-up and leading something to success that drives them everyday. Often this can lead to selling the business or moving on to start a new one once they have everything set for the future.

With many qualities overlapping, where do you see yourself categorized below?

Entrepreneurs Self-Employed

-Flexible         -Hard Working
-Creative        -Goal Oriented
-Confident -Quality Conscious
-Passionate     -Good Communicator


Sources and Related Articles:
The Entrepreneurial Mindset
10 Qualities of a Successful Entrepreneur
Top 10 Personal Qualities for Success in Self-Employment