Tuesday, December 4, 2012

Entrepreneur, self-employee, employee

A big misconception grows in France about the word Entrepreneur.
For the majority of people Entrepreneur is someone that work for himself. So one might argue that consulting and training is entrepreneurship.

Wrong ! This is not entrepreneurship, this is self-employment.

The goal and mind of an entrepreneur is different from a self-employer.
The difference is that : an entrepreneur build a business whereas a self-employer build its job.

So here is a clear definition of what is going on :

An employee is someone that consume a job, and the product of the job is consumable its creates.
The product of a self-employer is his job, and the product of his job is consumable it creates.
The product of an entrepreneur is a business, the product of the business are jobs, and the product of job is consumable it creates.

A business will live and grow without its creator : the entrepreneur.
An entrepreneur and a business are two different entities.

A job and a self-employer is a single entity. Without self-employer, the job dies.

That's a considerable shift in perception. And a hard one for me, because the majority of people does not know what enterpreneurship is, the more you stay at school, the more your environment push you to employement or self-employment. This clear definition was exposed to me thanks to The E-Myth Revisited from Michael E. Gerber.

This remind me what I have read in The Conspiracy of the Rich of Robert T. Kiyosaki about the power of derivative.

A broad definition of a derivative is a substance that can be made from another substance.  For example, orange juice is a derivative of an orange.  

The theory is : the more derivative is your product, the more money you'll get.
In one sentence : A business is a derivative of jobs that are a derivative of consumable.
That's why an employee gets less than a self-employee that gets less than an entrepreneur.

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