Fundamentals of Management, 11/e

Is Entrepreneurship Different from Self-Employment?

Many people confuse entrepreneurship with self-employment. Are they the same? The answer is: sometimes. Let’s start by defining self-employment.

Self-employment refers to individuals who work for profit or fees in their own business, profession, trade, or farm.4 This arrangement focuses on established professions such as electricians, bookkeepers, or insurance agents. Recall our definition of entrepreneurship as a process of capitalizing on opportunities by starting new businesses for the purposes of changing, revolutionizing, transforming, or introducing new products or services. Now let’s look at three points of comparison of the two.

First, both entrepreneurs and self-employed individuals ...