Employees and entrepreneurs are not the same. No matter how you want to cut it, they have different objectives and motivations. It’s simply not apt to call everyone “colleagues” when the underlying incentives differ so much.
Most employees are not entrepreneurs in the traditional sense. They have a different view of what working life should be and don’t even operate under the same assumptions. Workers believe that going to a job puts food on the table, while business leaders see their activities differently, often as a vision of “changing the world.”
As such, the differences between motivation levels between these two classes of people can be shocking. Entrepreneurs will give up almost everything to see their mission flourish, while workers may have other priorities in their lives.
This guide looks at some of the real differences between entrepreneurs and employees. By the end, you should have a better understanding of why they behave so differently.
Work-Life Balance
An employee is someone who cherishes the ability to split time between work and home. They think that a full life involves doing both. They want to do their job (that’s part of their lives), but they also want to explore, indulge in hobbies, and enjoy a social life.
Entrepreneurs on the other hand don’t stick to these rigid lines. Critically, most don’t see a difference between their business and their home life. For them, it is all part of the same continuous whole.
Furthermore, entrepreneurs are okay with doing work whenever because, for them, it isn’t something that someone else is imposing on them. Instead, it is part of who they are. They’re in control and they’re trying to make something happen. If that means that they miss their child’s school recital, then so be it.
Competition
Entrepreneurs and employees also differ in terms of the competition they focus on. Colleagues are often battling among themselves to gain dominance within the group and earn the respect of others. For example, you might have sales team members trying to claw their way to the top of the leadership board.
For entrepreneurs, the fight is different. Their rivals aren’t people in their firms: they usually have full control over that. Instead, it is the other people in their industry trying to outsmart them.
A few startups lack any competition to begin with. However, it almost inevitably emerges over time, so it is something that business leaders must prepare themselves for in the earliest stages of their ventures.
Many of these fights at the company level are gladiatorial. Entrepreneurs have to think beyond the social dimension and get onto a strategic level where they can win. It’s this change that is the most critical, as it means that they constantly have to absorb new ideas, just in case they run across something that can help them thrive.
Purpose And Impact
Entrepreneurs and employees also differ on purpose and impact at most companies, although strictly speaking, they really shouldn’t. Usually, employees find motivation from the money they earn, while employees get it from their self-created purpose, as embodied through their business. Ultimately, colleagues are people who are there because they have to be, while employers are individuals who are trying to achieve something.
Leveraging employee engagement can turn this situation around, though, and put business leaders and their workers on the same page. Many schemes attempt to align goals, helping employees also see the value in working toward a greater good. The best situation is when everyone at the company views themselves as an architect of the future.
Innovation
Differences on the innovation front between workers and leaders also exist. Employees are more interested in creative projects within the company and how they can improve their processes. Many will look for ways to enhance productivity.
Meanwhile, entrepreneurs aren’t so interested in operations. The most visionary focus on the next big thing instead, trying to figure out how they can disrupt the industry and get ahead of their closest rivals.
Usually, workers are tackling problems similar to those other people have taken on before. However, entrepreneurs aren’t like that. They want to solve new problems that other firms haven’t taken on or simply don’t have the people to address.
Legacy
Then, there are differences between the legacies these two groups care about. Employees’ focus is usually on their personal careers, the changes they make, and the companies they take part in.
However, entrepreneurs have a more grandiose vision. They want to build something that lasts beyond them and extends well into the future.
Steve Jobs was a great example of this in practice. He put his energy into creating products that would outlive him, allowing him to continue impacting the world well after he was gone.
Therefore, this is also something you’ll want to consider when running a company. Most employees see themselves that way and can’t imagine ever moving to the next step. Knowing this, business leaders must understand the “company man” and what he wants.
Decision-Making Power
Of course, decision-making power also contributes to the motivational differences between employees and their employers. Usually, workers have a say, but ultimately they don’t contribute to the running of the business. It’s a dictatorship, not a democracy.
Furthermore, many workers are okay with this. Most don’t actually want to be in charge, even if they grumble from time to time.
Meanwhile, entrepreneurs crave that authority. They know that the decisions they make can make or break the company, taking it in different directions as they see fit.
Source Of Income
The source of income also plays a role in engagement. Entrepreneurs care a lot about the company’s performance because it determines how much they get paid. Meanwhile, workers get paid the same every month regardless of income until the firm goes bust.
Because of this, employees usually seek comfort in a steady paycheck and other perks, like health insurance. Their primary motivation is fear and a loss of the meager possessions they own.
For entrepreneurs, the motivations are different. They want to strike out and make massive earnings, even if their incomes are inconsistent and sometimes change substantially from one month to the next.
These differences affect incentives. Workers know that they can go to a different job that pays similarly whenever they want, while entrepreneurs are usually stuck with the companies they own unless they are geniuses able to create new ideas at will.
Risk Tolerance
Motivation also comes into play when considering risk tolerance. Employees prefer the safety of job security. They don’t like the idea of an unstable career or losing a lot of money.
Meanwhile, many entrepreneurs can’t stand this idea. They often get a rush whenever they take financial risks which sees them through and out of the other side, regardless of how challenging making money becomes.
Furthermore, they like the idea of outsized rewards. They know the chances of winning are slim, but they also understand that they’d be no better off usually if they went down the conventional career path.
Recognition
Finally, the level of recognition between workers and employees can also impact motivation. Workers sometimes get a pat on the back or an award ceremony to celebrate their achievements. However, entrepreneurs can sometimes go down in history and have the raw satisfaction of knowing they tried something different.
These key drivers explain why business leaders are often more willing to put in the hours. For them, it’s higher stakes, while for workers, it is just a way to make money.
