Now
there is absolutely nothing wrong with entrepreneurs. They’ve helped
change and impact the world and have certainly made a substantial amount
of money. But for every Mark Zuckerberg, there are thousands of flops.
Before making any big financial decisions on what kind of career you
want to pursue, it’s important to understand the difference between
being an entrepreneur and owning a small business.

Small business
owners have many different objectives than entrepreneurs. First, small
business owners are seeking a regular income, while entrepreneurs seek
an exit value of their company or innovation. A small business owner is
looking for self-employment, while an entrepreneur is looking for
financial freedom.

And an important difference: small business
owners start and grow their business through bank loans, while
entrepreneurs depend on investors to gamble on their idea.

Small
business owners focus on their product or service and deliver it
consistently. Entrepreneurs are continually innovating and thinking of
the next product. They’re never satisfied with the status quo.

If
you work better concentrating on one thing at a time, you’re more fit
to be a small business owner. If you thrive on chaos, love action and
are willing to fail several times before hitting it big, maybe an
entrepreneurial route is the right one for you.

“Entrepreneurs
and (small) business owners have a different relationship with their
companies,” writes Gene Marks, a contributor for Forbes. “Entrepreneurs
view their companies as assets. Something to be developed, shaped and
readied for market. And then sold for a profit so that they can move on
to the next ‘big one.'”

One
of the biggest differences that Marks argues is that entrepreneurs
prefer their passion over making profits. Zuckerberg likely didn’t start
Facebook for the money and small business owners that make a high
salary may not like their job all the time, but both can be happy.

All
good business ideas need money to get started. A small business owner
develops a plan to not only make money for himself and his employees,
but also a plan to pay off his small business loan. Entrepreneurs have a
much harder task. They need to not only pay back their investors share,
but also help those investors make money. There is never a guarantee on
a great idea.

But that’s the difference between a small business
owner and an entrepreneur. The latter is willing to fail, while the
small business owner just wants stability.

There’s a piece of
legislation heading to the U.S. Senate called Startup Act 2.0 that aims
to improve the landscape for entrepreneurs. AOL co-founder Steve Case is
on a panel to help craft the legislation. In a recent article he wrote
for TechCrunch, Case writes, “Let’s urge our leaders in Washington to
defy the odds once again in 2012 so that our entrepreneurs can usher in a
new wave of iconic, American companies.”

Entrepreneurs attempt
to the defy the odds with each idea. Small business owners develop a
stable plan to improve their life and the community their business
operates in.