Understanding the Distinctions Between Self-Employment, Entrepreneurship, and Businessman

Entrepreneurship, self-employment, and businessperson are terms that are often misused or misunderstood. While these terms may not have a legal standing, they describe distinct roles and mindsets within the business world. This article aims to clarify the distinctions between these terms, providing a clearer understanding of what each one entails.

What Defines an Entrepreneur?

According to the Oxford Dictionary, entrepreneur is described as a person who organizes and operates a business, taking on greater than normal financial risks to do so. But this definition is just the tip of the iceberg. Howard Stevenson, a longtime professor at Harvard Business School, offers a more comprehensive definition: "The pursuit of opportunity without regard to resources currently controlled."

This definition goes beyond mere risk-taking. An entrepreneur is more about identifying opportunities and pursuing them, regardless of the resources they currently control. For instance, an entrepreneur can start a new business, buy an existing one, or innovate within an existing company. The focus is on the entrepreneurial process and its approach to finding and leveraging opportunities.

The Fashion of -preneur Terms

Recently, the concept of being an entrepreneur has expanded to include a myriad of -preneur terms, each with its unique twist. Some of these terms have achieved commonly accepted status, while others are merely creative personal concoctions. Here are a few examples:

Techopreneur: A person who starts or operates a technology-driven business. Socialpreneur: An entrepreneur who focuses on social impact or social innovation. Docpreneur: A healthcare professional who starts a medical or health-related business. Passionpreneur: An entrepreneur driven by passion and a unique idea. Webpreneur: An entrepreneur who works in the web technology field. Studentpreneur: An entrepreneur who is a student, often starting a business while still in academic pursuit. Ecopreneur: A business professional who is eco-friendly and focuses on sustainability. Infopreneur: A person who creates and distributes information or knowledge products. Femalepreneur: An entrepreneur who is a woman. Homepreneur: An entrepreneur who works from home.

It's interesting to note that self-employed individuals could be called Solopreneurs, a term that combines the concepts of solo work and entrepreneurship.

A businesswoman could be an Intrapreneur, someone who fosters entrepreneurship within a larger organization. While these terms exist, not all entrepreneurs fit into these boxes, and they are not mutually exclusive.

The Traits of an Entrepreneur

An entrepreneur is a specific personality type.Entrepreneurs are often fixated on identifying and addressing inefficiencies or problems in the market. They are driven to create new opportunities, often driven by a desire to benefit others. However, correlation does not equal causation. Not every person who starts a business is an entrepreneur; entrepreneurship is more about a mindset and a pursuit of opportunity than just starting a business.

The Role of a Businessperson

Businesspeople work in a business-related field. This could include roles such as marketing, finance, sales, operations, supply chain management, and more. Businesspeople may work for themselves or for a company and are often knowledgeable and experienced in their field. However, a businessperson isn't necessarily self-employed nor does it imply that they own a business.

Self-Employment vs Entrepreneurship

The term self-employed can be somewhat misleading, especially in the United States. A self-employed individual works for themselves, but they may not be an entrepreneur. Similarly, a businessperson is not necessarily self-employed, nor do they need to own a business. The distinction lies in the mindset and the pursuit of opportunity, rather than just in the legal or organizational structure.

Entrepreneurship is often misunderstood, creating a desire to attach a -preneur suffix to any job or role. However, the reality is that only about 8% of the population is considered to be truly entrepreneurial. Entrepreneurship is more likely to be self-employed, but not all self-employed individuals are entrepreneurs.

In conclusion, the terms self-employment, entrepreneurship, and businessperson each describe distinct roles and mindsets. Understanding the distinctions between these terms can help in accurately describing one's career and aspirations in the business world.