One involves building a scalable business system and the other focuses on providing services or selling products directly, often without the intention or capacity for significant growth. For example, an independent consultant selling their expertise is typically self-employed, while someone developing a software platform with the aim of market disruption is considered an entrepreneur. The former exchanges time for money directly, while the latter invests time and resources to build an asset with the potential for exponential returns.
Understanding this distinction is crucial for making informed career and financial decisions. It clarifies the different mindsets, risk profiles, and potential rewards associated with each path. Historically, self-employment has been a common means of livelihood, while entrepreneurship, particularly in its modern, innovation-driven form, is a relatively recent phenomenon. This distinction has become increasingly relevant with the rise of the gig economy and startup culture.
