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Here are 5 differences between traders and entrepreneurs

differences between traders and entrepreneurs

Differences between Traders and Entrepreneurs – Many people often think that when they run a business, they are already an entrepreneur or a businessman. In fact, it’s not that easy to claim yourself as an entrepreneur. Entrepreneurship does not mean that people deserve the title of entrepreneur.

Traders and entrepreneurs are both called CEO but in different stands. CEO in the context of a trader means the Chief Everything Officer or doing everything himself, while the CEO in the context of an entrepreneur is the Chief Executive Officer which means he needs a delegation of tasks.

Entrepreneurs need to delegate tasks when people or traders do not believe it, entrepreneurs give trust by delegating some of the tasks. The delegation of some of the employer’s duties is characterized by having employees who can make decisions. This is where the purpose of believing between mistrust is by establishing a standard operating procedure and presenting the jobdesk.

Entrepreneurs are characterized by creating momentum. This means that entrepreneurs are always on the move, not passive, and proactive. Moving in any case, building relationships, creating events, anything that supports their business positively, is different from traders who only transact and feel that they have had enough.

Entrepreneurs need a mentor or teacher. The mentor is in charge of controlling and being a place of consultation when running a business. Mentors are not just anyone either. Teachers for entrepreneurs should also be consistent business actors and should not change mentors or just one person.

Different Doing Business and Trading

People often misunderstand that business is a trade, or that trade is part of a business. Even though the two are very different. Maybe most of them are just taught and understand that trading and doing business is doing business for profit.

This lack of understanding of the true meaning of trade and business makes people who have noble goals to do business, instead fall into trading. You never become aware of this until you feel that the results you have gained from selling over the years have never improved. The dream of becoming a conglomerate has slipped so it remains destitute.

Trading: emphasis is on instant and immediate results / profits.

Doing business: more emphasis on long-term, greater results.


Trader is a person or entity buying, receiving or storing goods with the intention of being sold, delivered or sent to another person or entity, either in the form of original important goods, or which have been turned into other goods.

Therefore, a trader means someone who sells an item wanting to make a profit. This does not mean that entrepreneurs do not want to make a profit.

In conducting a business, a trader will look for goods that have a lower price or are below the selling price and will be sold again at a price difference that will be the profit of the merchant.


Entrepreneurs are people who have the ability to see and assess business opportunities. Gather the resources needed to take advantage of it and take appropriate action, to ensure success.

Entrepreneurs will have a greater investment risk than that borne by traders. This is because entrepreneurs are not necessarily able to get their profits right away. Another case with traders who can make a profit after their merchandise is sold.

An entrepreneur will usually have a very strong mentality and also resilience. Entrepreneurs have also become accustomed to being under pressure. This is because an entrepreneur may experience a major failure when his business cannot be accepted by the community. The mentality between merchants and entrepreneurs can be one of the biggest differences between them.

Differences between Traders and Entrepreneurs

Although basically some people think the same, in fact when examined carefully, the differences between traders and entrepreneurs are quite significant.

One of them is that traders only want the merchandise to sell and get income. Meanwhile, entrepreneurs generally think about long-term business planning . Here is a complete review of the differences.

1. Planning

An entrepreneur will definitely plan his business in the short, medium and long term.

Meanwhile, for traders, they generally do not place great importance on planning. For traders, if their merchandise is selling well, they are very happy. So that there is no detailed monitoring of the profits like that of an entrepreneur.

2. How to See Consumers

A trader considers consumers to be people who will give him money, therefore a trader will try to “grab” as much money as possible from consumers by increasing prices so that the bargaining process occurs.

An entrepreneur maintains better relations with consumers , therefore an entrepreneur tries to give the best price for consumers in the hope that consumers are satisfied and become loyal customers for him.

3. How to Get Money

The trader is a person who is only concerned with getting money every day in order to continue trading at a later date. It’s just like that the cycle. As for entrepreneurs, they also think the same thing and want to earn income every day.

However, an entrepreneur continues to think about solutions and form a system for how to get the money to come to them. So, it is through this system that money will come to him, not him who makes money. Business is a tool to achieve dreams. There are two mindsets for getting money, namely hard work and smart work. Traders work to earn money, while entrepreneurs work to build assets and it is these assets that generate money.

Determining the assets you want to own requires vision. After the vision is found, a mission appears in the form of an organized strategy, planning, targets, and so on. Natural law in business means believing in processes, whereas traders usually avoid processes. The process in question is building systems, delegating tasks, and so on.

4. Work System

The merchant is a figure who works hard. However, that does not mean that entrepreneurs don’t work hard, the difference is that traders run their own business activities and have no interference from other people.

If it is an entrepreneur, it already has a system and there is management. Its job is only to monitor the performance of the team or its employees. Entrepreneurs do not run their own business, but they have a team that helps grow the business.

5. Time Requirement

A trader needs a lot of time to run his business, for the previous reason, they run everything alone. Traders have less time to interact with relations because time has been used up for trading.

On the contrary, if the entrepreneur only has a small amount of time to supervise his business. His time is up to build business relationships everywhere. The business he has built has been run by the team himself.

See Also : 10 Ways to Become a Successful Entrepreneur

This is a review of some of the differences between traders and entrepreneurs that you need to know. Traders can be the first step as entrepreneurs, but many of them continue to be traders for life.

That is because apart from not having a vision and being unable to build a plan for his business system, he is also unable to optimize the potential such as the capital he has to develop trade.