The characters literally combine to mean “capital-person,” a person whose identity and power come from owning capital (`资本`, zīběn).
The term `资本家` is impossible to separate from the official ideology of the Communist Party of China (CPC). In orthodox Marxist-Leninist thought, history is a story of class struggle between the bourgeoisie (资产阶级, zīchǎn jiējí), which includes the `资本家`, and the proletariat (无产阶级, wúchǎn jiējí), or the working class. The `资本家` is the villain in this narrative—the one who owns the factories and resources, and profits from the “surplus value” created by workers. This contrasts sharply with the Western concept of a “capitalist” or “entrepreneur.” In the United States, for example, figures like Henry Ford or Steve Jobs are often celebrated as innovators, visionaries, and job creators. The term “capitalist” can be a neutral descriptor of one's role in the economy or even a badge of honor signifying success and ambition. In China, especially during the Mao era (1949-1976), being labeled a `资本家` was a political death sentence, leading to public humiliation, seizure of property, and persecution. Although China's economic reforms have created a class of billionaires, the official ideology hasn't fully reconciled this reality. Therefore, successful business leaders are almost always referred to with the more positive and modern term 企业家 (qǐyèjiā - entrepreneur), which emphasizes innovation and leadership, rather than the politically toxic `资本家`, which emphasizes exploitation.
In today's China, `资本家` is rarely a term of self-identification. Its usage is almost always by others and is heavily context-dependent.
The biggest mistake an English speaker can make is to use `资本家` in a positive or aspirational context, as one might use “capitalist” or “entrepreneur” in English.
While your local convenience store owner is technically a “capitalist,” calling them a `资本家` would be strange and overly dramatic. The term is usually reserved for the owners of larger enterprises, or used hyperbolically to criticize someone's behavior. For a small business owner, you would simply use 老板 (lǎobǎn - boss) or 商人 (shāngrén - businessperson).