Difference Between Entrepreneur and Manager

Edited by Diffzy | Updated on: June 06, 2023


Difference Between Entrepreneur and Manager

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Do you understand the distinction between an entrepreneur and a manager? Although both professions demand leadership talents, an entrepreneur must possess skills that differ from those of a manager. Understanding the factors that render an entrepreneur successful is critical for success as entrepreneurship has grown in popularity in recent years. An entrepreneur is someone who possesses an idea, the skills to implement that idea, and the courage to take the risk necessary for making that concept a reality. The individual who administers the organization, on the other hand, is referred to as a manager because, as the term implies, managers manage the organization's functions and operations.

Entrepreneur vs Manager

The major distinction between an entrepreneur and a manager is that an entrepreneur is the owner of the organization, and so carries all the risks and uncertainties in the firm, whereas a manager is an employee of the company.

Difference Between Entrepreneur and Manager in Tabular Form

MeaningAn entrepreneur is someone who starts a business by incurring financial risks in order to benefit.A manager oversees controlling and running the organization.
Position in the companyThey are visionaries who turn a concept into a profitable enterprise. They are the company's owners.They are the company's employees.
FocusThey concentrate on company starts.They concentrate on ongoing operations.
MotivationTheir primary source of inspiration is the company's achievements.The power associated with the position motivates them.
RewardTheir reward is the profit made by the company.Their compensation is the salary they receive from the company.
ApproachThey might be casual in their roles and approachable.Their approach to every challenge is formal, and they use scientific methods.
Nature of decisionsThey are daredevils. They undertake calculated risks in order to propel the organization forward.They are fearful of taking risks. Their job is to keep the company's status quo.
Decision MakingDecisions are usually made intuitively.The choices are calculated.
SpecializationThey do not need to be skilled in a specific trade.They have been trained to do duties and are experts in their field.
Risk orientationsTaker of risks.Fear of taking risks.

What Is an Entrepreneur?

The name "entrepreneur" comes from the French and means "go between" or "between-takers." An entrepreneur is someone who starts a new business by putting together inputs (such as land, labour, and capital) for production. He accepts every risk and uncertainty in order to profit and grow the company endeavor by recognizing new opportunities and pooling resources to capitalize on them. He creates innovative concepts and business methods.

They are categorized as innovative entrepreneurs, an imitation entrepreneur, a Fabian entrepreneur, and a drone entrepreneur. They can also be classified according to business, technology, motive, geography, stages of development, and so on. The following are the traits of a successful entrepreneur:

  • Taker of chances
  • Conviction and dedication
  • Ability to assess initiative and independence
  • Personal effectiveness is high.
  • A high level of achievement is required.

Why Are Entrepreneurs Important?

Entrepreneurship is one of four resources identified by economists as essential to production: land/natural resources, labour, and capital. The initial three of these are combined by an entrepreneur to produce items or deliver services. They usually develop a business plan, hire employees, obtain resources and funding, and provide management and leadership for the company.

Economists have never agreed on a definition of "entrepreneur" or "entrepreneurship" (the term "entrepreneur" is derived from the French verb Entreprendre, which means "to undertake"). Even though the concept of an entrepreneur has existed for millennia, classical and neoclassical economists both excluded entrepreneurs from their formal models. They anticipated that totally rational actors would have perfect information, leaving no room for risk-taking or discovery. Economists did not significantly attempt incorporating entrepreneurship into their frameworks until the middle of the twentieth century.

Entrepreneurs were included because of three thinkers: Joseph Schumpeter, Frank Knight, and Israel Kirzner. Schumpeter proposed that entrepreneurs, not only businesses, were to blame for the invention of new products in the pursuit of profit. Knight saw entrepreneurs as bearers of uncertainty and held them accountable for risk premiums in financial markets. Kirzner viewed entrepreneurship as a procedure that resulted in the identification of new opportunities.

In today's world, entrepreneurs frequently confront numerous challenges when establishing their businesses. Many of them identify overcoming bureaucracy, acquiring talent, and obtaining money as the three most difficult.

Types of Entrepreneurs

Not every entrepreneur is the same, nor do they all have the same objectives. Here are a few examples of different types of entrepreneurs:


Builders aim to establish scalable businesses in a short period of time. Builders often generate $5 million in sales in the first couple of years to four years and continue to grow until they reach $100 million or more. These individuals attempt to establish a robust infrastructure by attracting the greatest staff and investment. They may have volatile personalities that are suited to the rapid growth they seek but make personal and business relationships tough.


Opportunistic entrepreneurs are optimistic individuals who can identify financial possibilities, enter at the proper time, stay on board during growth, and exit when a business reaches its pinnacle.

These entrepreneurs are preoccupied with earnings and the riches they will create; thus they are drawn to concepts that might generate residual or renewal revenue. Opportunistic entrepreneurs can be reckless since they are hunting for well-timed possibilities.


Innovators are those uncommon individuals who come up with a terrific concept or product that nobody else has thought of. Consider the names of Thomas Edison, Steve Jobs, and Mark Zuckerberg. These people did what they enjoyed and discovered economic opportunities through their creative thinking and ideas.

Rather than concentrating on money, innovators are more concerned with the social impact of their products and services. These folks are not the best at operating a business because they are idea generators, thus, they frequently delegate everyday tasks to those who are more adept in that regard.


These people are analytic and risk-averse. They have developed an impressive set of abilities in a certain field through school or apprenticeship. A specialist entrepreneur will expand their firm through network and referrals, which can lead to more gradual expansion than a builder entrepreneur.

What Is a Manager?

We define a manager as someone who gets things done through his subordinates in order to achieve company objectives efficiently and effectively. A manager's five major functions are planning, organizing, leading and motivating, coordination, and control.

The manager is in charge of the company's specific division, unit, or department. He can either direct workers directly or direct supervisors to direct workers. As a result, he is the one who supervises and reports to his subordinates. Managers can be classified as top-level, middle-level, or low-level.

Manager Role in an Organisation

Organizations are title hierarchies. From the top down, the organizational chart or structure of the corporation and the relationships of the positions and tasks may include CEO, vice president, director, and manager. Each of these individuals performs distinct and vital functions that allow the organization to run, meet its obligations, and generate a profit.

The higher you rise in the organization's echelons, the further you are removed from the firm's day-to-day operations and activities. While the chief executive officer and vice presidents concentrate their attention on matters of tactics, investment, and overall cooperation, managers work directly with customers, produce and sell the firm's goods or services, and provide internal assistance to other groups.

Essential Characteristics of a Manager

1. The Ability to Motivate Oneself

Managers are accountable for inspiring their people, which implies they must be self-motivated as well. Self-motivation implies that you are not only able to get started on the development being at hand, but you are additionally able to work independently to complete each stage. As a manager, you must be self-motivated because you will be expected to instil this trait in the individuals under your supervision.

2. Communication Skills that Work

Effective communication skills are another important characteristic that managers must have. A manager's primary responsibility is communication. Good managers can interact with their staff members in a clear and constructive manner that fosters a great working relationship. Furthermore, effective managers are skilled in both verbal and nonverbal communication. An excellent manager sets a positive example for his or her employees in order to instil such behavior in them.

3. Arrogance-Free Confidence

It is critical for you to be self-assured as a manager. Confidence demonstrates to the staff that you believe in their abilities, which increases their admiration for you. Unfortunately, such assurance is frequently misconstrued as arrogance. Employees will lose admiration for you instead of gaining it if they perceive you are arrogant. To avoid this, inject individuality into your confidence to make oneself likeable to your staff.

4. Willingness to Participate

Withholding facts from your staff is an ineffective management tactic. Instead, successful managers share as much knowledge with their people as possible, fostering a culture of collective intelligence. This builds respect between management and staff, resulting in a more productive working relationship. Remember that isolating yourself from individuals you manage will erode trust in the relationship.

5. Problem-solving abilities

Finally, a great manager can solve problems. Problem resolution is an important aspect of any management position, whether it is resolving an employee conflict or dealing with a client problem. A good manager, besides to being adept at solving difficulties, accepts responsibility for any problems that develop.

6. Good Listening skills

Managers who want their entire team or organization to succeed must be able to listen. Listening to other people's viewpoints allows you to get valuable knowledge that can help you improve processes and increase efficiency. Finally, good listening is a sort of idea delegation.

As a manager, you will have to deal with challenging disciplinary procedures on occasion. Pat emphasizes the importance of listening in these instances.

"Be open to what the person has to say. It does not mean that no penalties will be imposed on the individual, but the line manager must listen and listen with empathy."

To become a great listener, get comfortable with silence and ask open-ended inquiries.

Main Differences Between an Entrepreneur and a Manager in Points

The distinction between entrepreneur and manager is obvious on the following grounds:

  • An entrepreneur is someone who starts a business through taking financial risks for their own benefit. A manager is an individual who oversees managing and administering the organization.
  • An entrepreneur concentrates on business startups, whereas a manager focuses on managing ongoing operations.
  • Entrepreneurs are motivated by their accomplishments. The major motivator, on the other hand, is power.
  • The manager approaches the task in a formal manner, which is the opposite of that of an entrepreneur.
  • An entrepreneur is the business's owner, whereas a manager is merely a company employee.
  • A manager is paid a wage in exchange for the work he does. Profit, on the other hand, is the entrepreneur's reward.
  • Entrepreneurial decisions are made by inductive reasoning, bravery, and determination, which is why they are intuitive. A manager's decision-making, on the other hand, is calculative, as it is motivated by deductive logic, the accumulation of facts, and counsel.
  • Creativity and invention are the primary motivators for an entrepreneur. A manager, on the other hand, maintains the current situation.
  • While the entrepreneur is willing to take risks, the manager is not.
  • Success is the most crucial motivator for an entrepreneur. Managers, on the other hand, are motivated by the power which comes with their employment. That is what drives them.
  • The revenue that an entrepreneur earns from his business compensates him for all of his efforts in the enterprise. Because the manager is an employee, his remuneration is determined by the wage he receives from the company.
  • The entrepreneur's profession allows for a more casual and laid-back approach. A manager, on the other hand, approaches issue resolution in a highly methodical manner.
  • The entrepreneur has the right to be informal and carefree in his role. A manager, on the other hand, will always address any situation methodically.


As a result of what has been stated thus far, it ought to come as no surprise that the phrases entrepreneur and manager are not interchangeable. An entrepreneur can have managerial duties, but a manager cannot ever be an entrepreneur. After all, an entrepreneur is a company owner, but a manager is a firm worker or employee.


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"Difference Between Entrepreneur and Manager." Diffzy.com, 2024. Sun. 03 Mar. 2024. <https://www.diffzy.com/article/difference-between-entrepreneur-and-manager>.

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