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Business owner vs investor

The differences between business owners and investors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a business owner, becoming an investor takes usually requires 2-4 years. Additionally, an investor has an average salary of $88,055, 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 investor are financial statements, IR, and press releases.

Business owner vs investor overview

Business OwnerInvestor
Yearly salary$50,934$88,055
Hourly rate$24.49$42.33
Growth rate6%8%
Number of jobs107,6638,409
Job satisfaction--
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 72%
Average age4442
Years of experience64

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 investor do?

An investor is a person who decides to put on their money into a particular bank, company, or institution without assuring the return of that investment. Often, investors spend their money on education, business, or even retirement. Some people also invest in mutual funds, stock exchanges, real estate, or stocks in a corporation.

Business owner vs investor salary

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

Business OwnerInvestor
Average salary$50,934$88,055
Salary rangeBetween $27,000 And $94,000Between $36,000 And $214,000
Highest paying CitySeattle, WAWashington, DC
Highest paying stateWashingtonAlaska
Best paying companyBDGoldman Sachs
Best paying industryRetail-

Differences between business owner and investor education

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

Business OwnerInvestor
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 72%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaNorthwestern University

Business owner vs investor demographics

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

Business OwnerInvestor
Average age4442
Gender ratioMale, 51.4% Female, 48.6%Male, 61.9% Female, 38.1%
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, 10.0% Unknown, 5.1% Hispanic or Latino, 11.9% Asian, 5.3% White, 67.1% American Indian and Alaska Native, 0.6%
LGBT Percentage10%12%

Differences between business owner and investor 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.
  • Show more

Investor example responsibilities.

  • Manage $250K portfolio with exposure to commodities, futures, and equities.
  • Manage a grand opening, create business website and Facebook marketing, implement marketing campaigns and sales events.
  • Manage nation-wide CRM application between technical teams and business departments.
  • Manage commercial and multifamily REO portfolio preparing property operating plans to enhance value and marketability of REO asset
  • Prepare and review necessary reconciliations to ensure assets balance and agree to FNMA actual/actual and schedule/actual reports.
  • Procure replacement instruments regarding lose securities.
  • Show more

Business owner vs investor skills

Common business owner skills
  • Customer Service, 31%
  • Payroll, 12%
  • Financial Statements, 9%
  • Business Plan, 7%
  • Business Model, 3%
  • Real Estate, 2%
Common investor skills
  • Financial Statements, 9%
  • IR, 8%
  • Press Releases, 7%
  • Investment Community, 5%
  • Real Estate, 5%
  • Reconciliations, 4%

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