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.