Difference Between an Employee and an Entrepreneur

1. Employees are resource-oriented. Entrepreneurs areas Superintendent of Education-he tried his hand at
opportunity-oriented.entrepreneurship. He purchased a national ice cream
A person with an employee mindset might say, "Ifranchise that failed in less than a year. Why? While
would start my own business but I don't have thethe reasons were many, one reason was his
money." Or "I'd love to invest in that piece of realleadership and management style. When he said,
estate, but I don't have the down payment." In both of"Jump"... no one jumped.
these examples the person focuses on theirInstead of the military's command-and-control
resources-in this case their lack of money, rather thanleadership style, his Rich Dad used a more cooperative
the opportunity.and collaborative style of leadership. He encouraged
In a similar situation, a person with an entrepreneur'shis son and Robert to learn to lead and manage
mindset might say, "Let's start the business and wepeople who are not required to follow our
can finance the business from the cash flow." Or "Tieorders-people who did not need to jump when they
up the property and we'll find the money later."heard the word "Jump." Rather than hire people and
Robert Kiyosaki's poor dad was a man who sawbring them in-house, rich dad networked with other
many opportunities, but failed to act on them simplypeople and organizations, which tended to reduce his
because he was resource-oriented. Instead of takingcosts and at the same time increase his resources
action, he often said, "I wish I could do it, but I can'tand influence in the marketplace.
afford it." Or "I would go into business for myself, but IToday, The Rich Dad Company follows rich dad's
need a steady job. I have a mortgage and you kids toadvice. Instead of becoming a stand-alone publishing
feed."house, they choose to cooperate via a joint venture
On the other hand, Robert Kiyosaki's rich dad (his bestagreement with The Time Warner Book Group, as
friend's father, an entrepreneur who taught him a lotwell as licensed publishers around the world who offer
about how the rich think about money) was a mantheir books in 43 languages. In this way, they keep the
who started with nothing, but eventually became onecore staff small, yet we utilize the thousands of
of the richest men in Hawaii. Today, when you look atemployees of publishers around the world.
Waikiki Beach, you see some of the biggest hotelsBut Robert Kiyosaki Says that leveraging the assets
along the ocean on land his family owns. He said, "Ifand resources of partners is not enough. It's important
you do not have resources, you need to becometo choose the right partners-ones who are aligned with
resourceful." That is why he forbade his son and meyour goals and values. Choosing the right partners can
from saying the words "I can't afford it." He said, "Poormake the difference between success and failure-as
people say 'I can't afford it.' That's why they're poor."I've learned the hard way.
Instead he insisted we learn to say, "How can I affordAs The Rich Dad Company has grown, they have
it?" He believed that when we said, "I can't afford it"worked with partners who have opened doors to
our minds were turned off and went to sleep. Whenopportunities that were much greater than what they
we asked ourselves, "How can I afford it?" our minds,could have been able to pursue on their own. In an
our greatest resource of all, were turned on and put toentrepreneurial spirit, they formed alliances with major
work.media organizations and international promotion firms
The second difference between entrepreneurs andthat leveraged the Rich Dad brand with their
employees is:worldwide networks.
2. Employees prefer to manage via hierarchicalIn doing so, Rich Dad Company-as entrepreneurs-stay
structures.small, yet increase market share by cooperating rather
Entrepreneurs manage via networks, utilizing thethan competing... by networking rather than hiring
resources of other people and organizations.employees and bringing work "in-house."
This means that employee-type leaders would ratherIn 1989 the world changed. That's when the Berlin Wall
hire people and bring their talent "in-house." Rather thancame down and the World Wide Web went up.
have an outside firm do their creative work, anInstead of a world of walls, Rich Dad Company
employee-type leader would prefer to hire the talentbecame a world of webs... networks of people
and have them under their control. While there areworking cooperatively rather than competitively. It is a
economic reasons for doing this, the report stated thatspecial honor for Robert Kiyosaki to be recognized by
the primary reason is control. This is becauseAmazon.com, a pioneer in the brave new world of the
employees gravitate to a leadership style that is moreweb, founded by a great entrepreneur, Jeff Bezos.
suited to a military command-and-control type ofThere are key, fundamental differences between the
organization.mindset of an employee and the mindset of an
Robert's poor dad was successful in the hierarchicalentrepreneur. One of the great things about this world
structure of the government, eventually rising to theof webs is that the world is now open for business to
top of the educational system as Superintendent ofbillions of people who choose to think as
Education and running for Lieutenant Governor for theentrepreneurs-rather than employees.
State of Hawaii. After losing that race-and his position