Often the words “entrepreneur” and “businessman” are used interchangeably. But the fact is that the meaning they signify is as different from each other as it can possibly be. In course of ignorance, many businessmen label themselves as entrepreneurs.
Entrepreneurs are directly involved in the dynamic, and very complex, interrelationship between financial management and business strategy. This is the significant difference that sets entrepreneurial management apart from all business management practices
A businessman is any person that engages in a series of economic activities to earn a profit. An entrepreneur, on the other hand, is someone who conceives an idea or a solution to a current problem that the society is facing, finds investors and sets up an enterprise to offer his expertise to the general public.
There are many differences in the way both think, operate, and do business.
I. On the originality of idea
A businessman can make a business out of an unoriginal business or product idea. He enters into existing businesses, such as franchising and retailing. He chooses a hot and profitable business idea regardless of whether it is his original idea or borrowed from someone else.
An entrepreneur is an inventor and the first creator of a product. He invests time, energy and money on his own idea. He doesn’t start a business from an unoriginal idea. That is why he starts on a startup while a businessman starts on a business.
II. On the purpose of doing
Most businessmen are doing business for profit, livelihood, for reaching their financial goals, and for becoming their own boss. Though, there are some business people who are not profit-oriented but people-oriented, that is, they are more concerned on the welfare of their workers and the satisfaction of their customers. Entrepreneurs are more concerned on changing the world. They want to pursue their passion and achieve an ultimate goal. They are not keen on financial returns, rather they are focused on what they can offer to the world. Their purpose for entrepreneurship is simply to make a difference in this world.
III. On the degree of risks taken
Businessmen take calculated and managed risks. They cannot afford to lose money and suffer from bankruptcy. That is why they always do the Math when it comes to business. Entrepreneurs are like sky divers. They take crazy risks. They often don’t care of losing time and money just to pursue their passion. But since they do it with love, joy and passion, they often gain extraordinary rewards. Entrepreneurs, since they do the things they love the most, they do it with the best of themselves, resulting to greater success.
IV. On how he treats employees
A business owner is an employer and a manager. He hires employees and workers to help his business grow. An entrepreneur is a friend and a leader. He finds peers and PEOPLE, whom he will never treat as machines. He invites them to help them grow.
V. On how he treats customers
A business owner usually sees customers as his source of sales and revenues. For him, customers are the lifeblood of his business. An entrepreneur sees customers as his source of duty and fulfillment. For him, customers are his own life blood.
VI. On how he sees the competition
A business owner tries hard to beat his competitors and win the competition. He also considers cooperation rather than competition to achieve certain goals. An entrepreneur tries hard to beat his worst competitor – himself.
#excerpt from our book “Basic Entrepreneurship” coming out soon#