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Self-employed vs business owner

The differences between self-employeds and business owners can be seen in a few details. Each job has different responsibilities and duties. It typically takes 4-6 years to become both a self-employed and a business owner. Additionally, a business owner has an average salary of $50,934, which is higher than the $34,734 average annual salary of a self-employed.

The top three skills for a self-employed include windows, mowing and customer service. The most important skills for a business owner are customer service, payroll, and financial statements.

Self-employed vs business owner overview

Self-EmployedBusiness Owner
Yearly salary$34,734$50,934
Hourly rate$16.70$24.49
Growth rate8%6%
Number of jobs6,215107,663
Job satisfaction5-
Most common degreeBachelor's Degree, 38%Bachelor's Degree, 52%
Average age4144
Years of experience66

What does a self-employed do?

A self-employed person works without the supervision of a specific employer. Self-employed entrepreneurs decide their business plans to increase profitability and get involved with the current market trends. They also attend business orientations to improve their skills and strategies on driving their business' growth. A self-employed person must display exceptional decision-making and organizational skills to implement strategies, provide the best customer service with the clients, address their needs, manage complaints, and respond to the customer's inquiries.

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.

Self-employed vs business owner salary

Self-employeds and business owners have different pay scales, as shown below.

Self-EmployedBusiness Owner
Average salary$34,734$50,934
Salary rangeBetween $27,000 And $44,000Between $27,000 And $94,000
Highest paying City-Seattle, WA
Highest paying state-Washington
Best paying company-BD
Best paying industry-Retail

Differences between self-employed and business owner education

There are a few differences between a self-employed and a business owner in terms of educational background:

Self-EmployedBusiness Owner
Most common degreeBachelor's Degree, 38%Bachelor's Degree, 52%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Self-employed vs business owner demographics

Here are the differences between self-employeds' and business owners' demographics:

Self-EmployedBusiness Owner
Average age4144
Gender ratioMale, 60.8% Female, 39.2%Male, 51.4% Female, 48.6%
Race ratioBlack or African American, 9.9% Unknown, 5.3% Hispanic or Latino, 17.1% Asian, 7.3% White, 59.8% American Indian and Alaska Native, 0.6%Black 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%
LGBT Percentage9%10%

Differences between self-employed and business owner duties and responsibilities

Self-employed example responsibilities.

  • Develop and manage the in-store informational PowerPoint presentations that run on multiple televisions to answer questions and provide information to customers.
  • Generate monthly, quarterly and yearly sales reports, correspondence, & PowerPoint presentations.
  • Complete jobs (lawn mowing, lawn cleaning, edging, trimmings bushes and trees) any aspect of lawn care.
  • Work with traditional video cameras and DSLR cameras.
  • Develop a website and Facebook page to increase networking.
  • Equip with a full-frame Nikon D600 and multiple lenses.
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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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Self-employed vs business owner skills

Common self-employed skills
  • Windows, 15%
  • Mowing, 14%
  • Customer Service, 13%
  • Financial Statements, 13%
  • Payroll, 8%
  • Real Estate, 7%
Common business owner skills
  • Customer Service, 31%
  • Payroll, 12%
  • Financial Statements, 9%
  • Business Plan, 7%
  • Business Model, 3%
  • Real Estate, 2%

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