Entrepreneur vs. Small Business Owner

Entrepreneur is a word used to inflate your self-image or ego.

Small business owner is a more matter-of-fact way to describe yourself (if you must).

It makes sense that he got a better response using "entrepreneur" because it sounds exotic and powerful, but I try to avoid using it in polite company.

A related story:

I once saw the CEO of a major insurance company get pulled in front of an audience by an entertainer. When the entertainer asked him to tell the audience what he did for a living, the CEO said:

"I sell insurance."

That's the approach I prefer for social situations...just maybe not when you're trying to make a sale.

Worth reading just for:

Sales calls that start like this “Hi, my name is August and I am a small business owner…” typically end with the receptionist (or whoever answers the phone) getting rid of me as quickly as possible.

Whereas calls that start like this “Hi, my name is August and I am an entrepreneur working on a new start up…” have a high probability of getting me transferred to a manager or decision maker of some sorts.

Good tip. Thanks.

Startup Entrepreneur vs. Small Business Owner is the "Hacker vs. Cracker" debate of Hacker News.

(Not to take anything away from an interesting little article, though).

I suspect the difference is in the perceived upside potential of the relationship. The news media has been conditioned to think of "startups" and "entrepreneurs" as being backed by VC money and taking shots at really big targets. Even if 98% of these bids fail, the ones that succeed are mentioned in headlines stating "So-And-So raises $500,000,000 and promises to be the next big Whatever.ly"

On the other hand, when you think of the small-business owner at the copy shop down the street, you see an upside of maybe expanding his one shop to three shops. The downside is that he'll welch on his bill if money gets tight.

Who would you rather do business with?

A/B testing at it's best. The exact wording of your introduction also makes a difference depending on what part of the country you live in. In silicon valley, "startup" will perk up most people's attention. "entrepreneur" in the midwest will get a "what ?"

Entrepreneur: one who starts a new business. often several in sequence, regardless of whether the earlier ones succeed or fail. often with a new product, technology, market or competitive advantage. could start small then grow to very large, or, in some cases, start large at creation (think spinoffs or multi-corporate-backed partnerships.) May take VC. May become a billionaire. Often seeks an exit in the form of an IPO or buyout, and often early enough in their career that they can move on to the next startup, or, to retire young.

Small business owner: you own a small business. you may not have started it. you might have bought it. it might be a franchise. it often is not innovative. typically a commodity product or service (apples, hair cuts, lawn mowing, etc.). it often will not scale up well. it is often a family thing and may already be on the 2nd generation. if it fails the owner/founder is more likely to go back to having a traditional job. May take angels, but almost never VC. May become a millionaire. Often seeks to maintain it as a lifestyle business, at most offloading operational duties to hired management in order to gain a passive income stream, but typically closer to traditional retirement age.

in practice? the line blurs, esp when people use the terms without making a consistent distinction.

Steve Jobs: entrepreneur

Uncle Bob and his lawn moving service: small business owner, NOT an entrepreneur

(my two cents)