These days, I have come to realise or rather notice that people mistake this two words and use them synonymously. But the truth is, most people are truly self employed not entreprenuers. There is a huge difference between the two. Though one can be an entreprenuer and be self employed but not all self employed people are entreprenuers. The distinction between entrepreneurship and self-employment revolves around the existence of an innovative business concept or idea. Entrepreneurs are attempting to develop something new. People who are self-employed, by contrast, typically engage in selling their labor to perform a specific set of tasks that are to some extent routine, but might differ in quality depending on who does them.
Due to layoffs, retrenchments, sack and the nagging problem of job insecurity, the ranks and number of the self-employed have swelled. Many are technical specialists who are simply performing – as subcontractors – the same activities for their former employers as they did when they were employees. Some are core traders who simply indulge in the art of buying and selling. These individual typically still think of themselves as employees in all but a technical sense; in many cases, they are.
By contrast, an entrepreneur’s task is to build a business around a new concept or offering a new idea. Self-employment carries far fewer requirements and restrictions than entrepreneurship. Entrepreneurs must deal with a wide range of legal requirements, including business registration and licensure, obtaining local permits, meeting legal insurance requirements and filing business taxes.
Its very important that we get this facts straight to avoid using these different words synonymously. The issue of employees is an area where self-employment and entrepreneurship can overlap. A self-employed individual cannot have employees working for him, although he can pay subcontractors to help him serve clients. An entrepreneur can have any number of employees working for his company, but it is possible for an entrepreneur to operate a one-man company. The difference between a self-employed individual and an entrepreneur running a one-man company comes down to business registration and the ways in which the individual serves and bills clients. Another point worthy of note is that, entreprenuership comes with professionalism, but self employment is mostly not professional. ***It is important to note that being self-employed is a different situation than simply being a business owner. A business owner is someone who owns a company but does not work with the day-to-day operation of the company.*** Basically, Self employment is Sales, Direct buying and selling etc. Entreprenuership is ideas and innovation. Which type are you? Do you want to stay there? Let me know in the comments…. Be Enlightened! Be inspired!! Be Motivated!!!