The Small Business Forum
Entrepreneurship and Self-Employment
- A distinction is often made between entrepreneurship and self-employment.
- Self-employment:
- Normally in existing products.
- Employment for the owner.
- Is self-financed.
- Generally driven by a desire for independence, or to own a business.
- Focus on the local market, not scalable.
- Entrepreneurship:
- Introduces new products.
- May create jobs for others.
- Pursues profit and long-term growth.
- Scalable.
- Can attract other financiers.
- Owner more of a manager or leader than a doer.
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While entrepreneurs are self-employed, the self-employed are not necessarily all entrepreneurs. More are self-employed than are entrepreneurs.
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The two, however, have common characteristics. They involve people depending on themselves, both involve working for yourself and making your own decisions, are accountable for profits and losses. They create employment, generate income and contribute to welfare and growth, and the terms are often considered the same and used interchangeably or self-employment viewed as the simplest form of entrepreneurship.
Comments, Questions and Suggestions welcome.
drkibuka@thesmallbusinessforum.co.ke
+254-729524219
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