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Business owner vs entrepreneur

The differences between business owners and entrepreneurs can be seen in a few details. Each job has different responsibilities and duties. It typically takes 4-6 years to become both a business owner and an entrepreneur. Additionally, an entrepreneur has an average salary of $70,849, which is higher than the $50,934 average annual salary of a business owner.

The top three skills for a business owner include customer service, payroll and financial statements. The most important skills for an entrepreneur are kids, web design, and product development.

Business owner vs entrepreneur overview

Business OwnerEntrepreneur
Yearly salary$50,934$70,849
Hourly rate$24.49$34.06
Growth rate6%6%
Number of jobs107,66334,711
Job satisfaction--
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 62%
Average age4444
Years of experience66

What does a business owner do?

Business owners, also known as Entrepreneurs, are responsible for their company and brand's success. There are many areas of responsibility when you're a business owner, such as in the aspects of planning and budgeting, arranging finances and legal documentation, and even hiring the workforce essential for the business to grow. However, these responsibilities will vary according to how a business owner will uphold them. Moreover, building a business from the ground up requires dedication and a vision and mission for the brand.

What does an entrepreneur do?

An entrepreneur is a business owner who regularly creates new ventures and sells them with the end goal of turning them into profit. To start up a new business, entrepreneurs must create business plans and acquire resources and financing while hiring talented individuals. They play a vital role in the economy because they are the driver of economic growth and innovation. They also make use of their business as a means of creating a sustainable living, which improves the quality of life.

Business owner vs entrepreneur salary

Business owners and entrepreneurs have different pay scales, as shown below.

Business OwnerEntrepreneur
Average salary$50,934$70,849
Salary rangeBetween $27,000 And $94,000Between $42,000 And $118,000
Highest paying CitySeattle, WANew York, NY
Highest paying stateWashingtonNew York
Best paying companyBDGeneral Catalyst
Best paying industryRetailFinance

Differences between business owner and entrepreneur education

There are a few differences between a business owner and an entrepreneur in terms of educational background:

Business OwnerEntrepreneur
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 62%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Business owner vs entrepreneur demographics

Here are the differences between business owners' and entrepreneurs' demographics:

Business OwnerEntrepreneur
Average age4444
Gender ratioMale, 51.4% Female, 48.6%Male, 58.5% Female, 41.5%
Race ratioBlack or African American, 6.3% Unknown, 4.3% Hispanic or Latino, 15.5% Asian, 6.4% White, 67.0% American Indian and Alaska Native, 0.5%Black or African American, 6.3% Unknown, 4.3% Hispanic or Latino, 15.4% Asian, 6.4% White, 67.1% American Indian and Alaska Native, 0.5%
LGBT Percentage10%10%

Differences between business owner and entrepreneur duties and responsibilities

Business owner example responsibilities.

  • Manage the budget and insure operations run smoothly.
  • Create, own and manage a LLC for grind pet transportation.
  • Establish and manage a beading boutique via the Internet by utilizing Photoshop to post designs on a personal website.
  • Manage sales, customer service, billing, A/P, A/R, vendor relations, negotiations, repairs, and maintenance.
  • Manage end to end business operations including hiring, scheduling visits, conducting customer consultations and performing pet visits.
  • Handle all aspects from A/P to A/R, payroll, ordering and dealing with all distributors and city officials.
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Entrepreneur example responsibilities.

  • Create and manage Instagram pages for clients, which contributes to the increase in social media following.
  • Manage and find members of band; help create YouTube videos; write music and play guitar.
  • Start and manage this LLC dedicate to the seasonal retail and wholesale sale of consumer fireworks at multiple locations in Pennsylvania
  • Formulate strategy and lead resulting IP acquisition and development efforts.
  • Manage accounting, payroll, advertising, curriculum development, and business relationships.
  • Develop and maintain site features and landing pages, leveraging customize JavaScript and PHP modules/plugins.
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Business owner vs entrepreneur skills

Common business owner skills
  • Customer Service, 31%
  • Payroll, 12%
  • Financial Statements, 9%
  • Business Plan, 7%
  • Business Model, 3%
  • Real Estate, 2%
Common entrepreneur skills
  • Kids, 51%
  • Web Design, 7%
  • Product Development, 5%
  • Business Plan, 4%
  • Financial Statements, 4%
  • Business Model, 2%

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