What is an employee who takes on an entrepreneurial role within a business called?

The main difference between employee and entrepreneur is that the employee should follow the rules and instructions given by an organization, while the entrepreneur is the one who makes the rules and issues instructions for employees.

Employee and entrepreneur are two titles we can find in an organization. Both employees and entrepreneurs work for the betterment of an organization. However, entrepreneurs work for themselves while employees work for employers or entrepreneurs.

Key Areas Covered

1. Who is an Employee 
     – Definition, Features 
2. Who is an Entrepreneur
     – Definition, Features
3. Similarities Between Employee and Entrepreneur
     – Outline of Common Features
4. Difference Between Employee and Entrepreneur
     – Comparison of Key Differences

Key Terms

Employee, Entrepreneur 

Who is an Employee

An employee is a person who performs specific duties for a company. An employee always seeks help from the administration or from the employer at work. At the same time, an employee receives a salary for the service he/she is offering to the company. Employees are also entitled to the benefits given by the employer. Furthermore, employees are protected and secured by law in terms of employment rights. They can take different types of leaves, such as sick leaves, casual leaves, paid leaves, and other leaves. According to necessity, the employees have the right to take leave.

There is generally a written or implied contract on the employment between the employee and the employer. Employees follow the instructions their employers give them. At the same time, the employees do not have a high level of risk since the upper management makes major decisions for the company or the organization. Moreover, employees generally receive a gratuity amount after they retire or leave the organization if the particular employee serves the company for a minimum of five years.

Who is an Entrepreneur

An entrepreneur is a person who creates a new business while bearing risks and enjoying most of the profits and the rewards. An entrepreneur is also known as an innovator. Entrepreneurs always have to take risks in order to maintain the smooth functioning of the organization. An entrepreneur is his own boss. Thus, they do not get a monthly salary. Instead, they receive the profit of the company as a benefit. There are no specific rules for entrepreneurs to follow since they are the people who make rules in an organization.

Generally, an entrepreneur is responsible for all the major decisions in the company. Entrepreneurs plan the tasks of the organization. The entrepreneur of an organization does not have any right to claim the gratuity payment. In addition, entrepreneurs can have leave in accordance with their desire. An entrepreneur does not have age limitations or any other barriers to exit from the career. They can serve the company as long as they desire. An entrepreneur has the full authority to issue instructions and commands. He does not make demands, but rather gives commands to the employees.

Similarities Between Employee and Entrepreneur

• Both the designations, employee and entrepreneur, can be seen in the organizational context.
• Both employees and entrepreneurs work for the success of the company.

Definition

An employee is a person who works for a company while performing his or her duties, whereas an entrepreneur is a person who creates a new business while bearing risks and enjoying most of the profits and rewards.

Compensation

Although an employee gets a fixed compensation for a month, an entrepreneur does not get fixed compensation.

Role

Employees have to follow instructions, whereas the entrepreneur issues the instructions and demands.

Responsibility

Although an employee is not responsible for each decision of the company, an entrepreneur is responsible for every decision of his company.

Leaves

Employees are entitled to different types of leaves in accordance with necessity, whereas entrepreneurs are not entitled to specific types of leaves.

Retirement

Employees have a specific retirement age limit, whereas entrepreneurs do not have an exact age limit to exit their carrier. They can work as long as they desire.

Conclusion

The key difference between employee and entrepreneur is that the employee should follow the rules and instructions given by an organization, while the entrepreneur is the one who makes the rules and issues instructions for employees. In other words, entrepreneurs work for themselves while employees work for employers or entrepreneurs.

Reference:

1. “Entrepreneurship.” Wikipedia. Wikipedia Foundation.

Image Courtesy:

1. “Man Sitting in Front of Computer” by Marc Mueller (CC0) via Pexels
2. “Entrepreneur-idea-competence-vision” (CC0) via Pixabay