Difference Between Entrepreneur and Businessman

Edited by Diffzy | Updated on: May 07, 2022

       

Difference Between Entrepreneur and Businessman Difference Between Entrepreneur and Businessman

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Introduction

Our childhood most definitely consisted of a large group of friends. At least at one point in time. If not friends, perhaps, one probably has an experience being a part of a group at school be it sports or an art project. In such groups, there was most likely a leader. That bossy person who insisted that everyone else do their bidding whether their decisions were sound or not. If we'd deviate from their instructions, they would probably throw a tantrum or run to the teacher in charge and then the teacher would have to come up with alternatives to satisfy the leader along with the disgruntled group members. In the adult world, alas, leaders cannot be shown to achieve such effectual tantrums. A tantrum would deem their leadership amateur. And their accomplishments would be laughed upon.

Like in any other team though, even in professional teams, there is always a person that leads. They come up with all the ideas, effective ways to execute those ideas, the roles that other group members will have to play and how the shared profits will be divided once the project is complete. Such people have to lead by example. They have to be formidable yet approachable; intelligent yet humble and most importantly, they must be willing to take a risk and must be strong enough to face the consequences even if it means incurring an amount of loss.

Entrepreneurs vs. Businessmen

In the realm of business, leadership is a task looked at with awe and fear at the same time. The responsibilities are humungous and the burden is often crippling mentally and sometimes even physically. The gains, though, are splendid. The credit achieved and the respect and adoration for supreme leadership are coveted by most, which is why people strive to be leaders. Entrepreneurs and businessmen come under this category. They are often confused as the same person but they are different from one another. An entrepreneur is a leader that creates business ideas and ventures while a businessman begins a venture that is dependent on an existing idea. Let us see how else they differ from each other.

Differences Between Entrepreneur and Businessman in a Tabular Form

Table: Entrepreneurs vs. Businessmen
PARAMETER
ENTREPRENEUR
BUSINESSMAN
Definition
An entrepreneur is a pioneer who has a new idea and wants to commercialize the idea with a new brand.
A businessman is a person that sets up a business based on existing ideas and models and offers services to customers.
Market Position
An entrepreneur is a market leader.
A businessman is a market player.
Market
An entrepreneur creates a new market.
A businessman sets up his business in the existing market.
Nature
The nature of an entrepreneur is more intuitive than calculative.
The nature of a businessman is more calculative then intuitive.
Risk factor
The risk factor assumed by the entrepreneur is always high.
The risk factor assumed by a businessman is comparatively low.
Methods employed for doing things
The methods employed by an entrepreneur are new and unconventional.
The methods employed by a businessman are the ones that are tried and tested and rather conventional.
Approach
An entrepreneur has an atomistic approach.
A businessman has a holistic approach.
Orientation
An entrepreneur focuses their orientation towards the general public.
A businessman focuses their orientation towards making profits.
Competition
The competition faced by an entrepreneur is relatively low.
The competition faced by a businessman is relatively high.
Time
The time spent by an entrepreneur on a venture can be massive because they have to perfect the idea before they release it to the market.
A businessman does not spend much time perfecting the idea. Rather they, use an existing idea for gaining profits from business.

Who is an Entrepreneur?

An entrepreneur is essentially a pioneer or an inventor. They create new ideas and concepts for business and market them for commercialization. Entrepreneurs are required to be brilliant and talented to be able to discover a new idea or a product, appreciate its value, direct operations to market the product and manage the profits from the market.

An entrepreneur while being innovative and creative must also be brave and be a risk-taker since their venture is new and may face criticisms and backlash. A business started by an entrepreneur is called a ‘start-up’ and the entrepreneur is central to it. They are responsible for the mobilization of three key factors – labour, land and capital.

An entrepreneur is required to have the following qualities:

  • They must harbour a passion for their idea and business. When an entrepreneur is passionate about their ideas, it positively influences their business.
  • They must focus both on the product as well as the consumers. Only having a good product that no consumer can purchase will lead to a loss.
  • They must not be afraid to fail. Since their product or idea is new and untested, it might likely fail but this must not stop the entrepreneur to work on their idea and trying again.
  • They must be visionary to recognize when an idea can be transformed into a profitable business.

There are many types of entrepreneurs depending on their field of interest and business. Some of them are as follows:

  • Technopreneurs: These entrepreneurs utilize technology and information to run their businesses.
  • Foodpreneurs: These entrepreneurs savour a passion for the culinary arts. They include social media and lifestyle to portray their culinary skills.
  • Mompreneurs: This is a subjective term. It is used to describe mothers who successfully run their businesses from their homes while keeping on top of their household chores.
  • Ecopreneurs: These entrepreneurs strive for a positive impact on the environment. They work on their products to be more environmentally friendly and impact the sustainability of the environment.
  • Sociopreneurs: In this thriving age of social media, sociopreneurs run their businesses to achieve profits with their ventures as well as accomplish social goals that benefit others.

When their ideas and products become stable, in the long run, entrepreneurs eventually become businessmen. They focus primarily on improving the idea and maintaining the three factors – labour, land and capital. Some of the famous entrepreneurs are Elon Musk (founder of SpaceX), Jeff Bezos (founder of Amazon), Bill Gates (co-founder of Microsoft) and Steve Jobs (co-founder of Apple).

Who is a Businessman?

A businessman is any person involved in an activity related to commerce or the industry. A businessman sets up their new business in the market with the sole purpose of achieving profits from the venture. Since profit is their focus, they gravitate toward the highest profit grossing products for their sale.

A businessman does not need to spend a lot of time or effort in creating a product like an entrepreneur. They get to work by jumping on an existing idea that has proven beneficial in the past. As the idea already exists, they face extreme competition in the market because of the other companies devouring the same idea. However, since it is a tried and tested product or idea, the chances of failure are less. And so is the risk. Businessmen, generally, are concerned about the opportunities that lead to success which is why their every move is made with care and a calculated risk.

With profits as the goal, a businessman must make sure they hire experts as their employees. They need to be dominant and decisive. They must also make certain that all their employees work in conjunction with each other and a healthy workplace environment is maintained to ensure productivity.

For an effective business, the businessman concentrates on generating revenue by employing the best human, financial and intellectual resources. This, in turn, ascertains customer satisfaction and adds to the profits gained by the business. Thus, their approach to the business must be holistic and involve all components involved in the business.

Differences Between Entrepreneur and Businessman in Points

Following are the main differences between entrepreneur and businessman:

  1. First and foremost, an entrepreneur is an inventor and someone who starts a business venture with a brand-new idea whereas a businessman is a person who makes his business with an existing idea.
  2. An entrepreneur creates a new market with his new ideas but a businessman works his business in the existing market.
  3. An entrepreneur is a market leader while a businessman is a market player.
  4. An entrepreneur is always more intuitive than calculative when it comes to the deals in the market. This is the opposite for a businessman. A businessman is always more calculative than intuitive.
  5. An entrepreneur is a risk-taker since their ideas and concept are new to the market. A businessman, on the other hand, is a risk bearer and has a lower risk in the market.
  6. An entrepreneur faces lesser competition since their ideas are new and unique while a businessman faces a lot of competition since their ideas have been in existence for some time.
  7. An entrepreneur uses unconventional methods while conducting the business and selling their products whereas a businessman uses tested conventional methods.
  8. An entrepreneur has an atomistic approach to their business. A businessman has a holistic approach to their business.
  9. An entrepreneur focuses on the people – the employees, customers and society while a businessman focuses on the profits of the business.
  10. An entrepreneur spends a lot of time trying to achieve their vision whereas for a businessman, time is of the essence and they only wish to reap profits from their business as soon as possible.

Conclusion

However similar sounding, an entrepreneur and a businessman are rather very different. An entrepreneur is an innovator who comes up with new ideas for a business venture. It is of utmost importance that they possess the following characteristics: They must have a passion for their idea and have a passion for the business. They must be bold to take the risk and must also be brave to exhibit this idea to the market. They must be prepared to face criticism and losses in case of failure.

As creators, they are more intuitive in their venture and atomistic in their approach to the business. Using unconventional methods in their business, their focus is directed more towards the employees, the customers and the society. After achieving success with their idea, an entrepreneur can eventually become a businessman. It is when they start to improve upon the same idea. There are various types of entrepreneurs like technopreneurs, sociopreneurs, ecopreneurs etc.

A businessman, on the other hand, is not a creator. They begin their business based on an existing idea. The only goal of the businessman is to amass profits from their business which is why they are very prudent in picking their ideas and employees. Since they work with an existing idea, the competition from other companies that are working with the same idea is high. But since the idea has been successful in the past, the risk level with the business is low. Even the chances of failure are low. A businessman must have a holistic approach to the business in that they must ensure the harmonious working of his employees for maximum productivity and must also make certain that the customer’s needs are met. It can be said that a businessman stays in the comfort zone by playing it safe and being calculative in their risks.

Therefore, both occupations require leadership qualities if only to ensure personal profits from their respective ventures. Like good leaders, they must also maintain focus on their goals and the welfare of their company. It is imperative to put the consumers' needs before their own and that itself provides a big bonus to the growth of the company. Unlike the childhood bully boss that one probably had or was, in the world of business, giving up or complaining to higher authorities does not work. Being an entrepreneur or a businessman is not easy. It requires a dedication to being a leader and leaders must take up the reins and the responsibility that comes along with them and be accountable for their decisions because they affect the consumers and society.

References

  1. https://startuptalky.com/famous-entrepreneur-world/
  2. https://www.hashmicro.com/blog/difference-between-entrepreneur-and-businessman/

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"Difference Between Entrepreneur and Businessman." Diffzy.com, 2022. Thu. 29 Sep. 2022. <https://www.diffzy.com/article/difference-between-entrepreneur-and-businessman-247>.



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