What Is The Difference Between A Founder & Entrepreneur?

by The TECHdotMN Team

Founders are those who have incorporated a for profit company; they have literally laid the foundation of being recognized as a legal entity and are forever recognized as that, regardless of their title or role (if any) related to the company over time.  Founder status is by-in-large irrevocable, and while each company will have it’s own requirements and qualifications, at TECHdotMN, we refer to the above as a guiding definition.

Entrepreneurs generate revenues into the for profit corporation by addressing inefficiencies, explicit problems or implicit need in the market with mutual economic value exchange between the ownership and customers.  This involves sourcing, organizing and allocating the necessary resources, while assuming both the risks and rewards associated with the endeavor. Entrepreneurial success is measured by positive financial Return on Investment (ROI) over time.

Therefore the difference between the two, as you read TECHdotMN may seem semantically subtle, but it’s actually quite significant: commercialization/revenue/income/monetization. Founding a company is the single most important step in the process of entrepreneurship as it relates to a path for remuneration of products and services offered.  Most entrepreneurs are by default also founders, though many founders will not become entrepreneurs.

*There is no right or wrong definitions – this is simply a clear articulation of implied capacity around two important and powerful words often used in sentences and the database architecture :)