Difference Between Entrepreneur and Businessman

Often in our daily lives, we come across the two terms- entrepreneur and businessman hearing about a company or any firm. Many people wonder if the two terminologies used for the same meaning or are different. The business world is the focal point for both entrepreneur and the businessman but the difference lies in their approaches. A businessman follows a predetermined path while an entrepreneur sets new innovative goals for his business.

We can assume that an entrepreneur can grow and become an established businessman. However, there is a very fine difference between the two, their thought processes can be put to a point of difference between the two. To understand the difference better, we have to understand the concept thoroughly.

Who is a Businessman

When a person starts a new firm, or a company, or even a small business and gets involved in activities that are commercial and related to the production of goods and/or services, he sets a business. The concept of his business is taken from the existing players or businesses in the market; he is just a new player.

This mode of his business makes him a businessman. Although the stages of his growth can be at different stages like a businessman can be at a small level or a well-established businessman. Some businessmen chose the same business of their ancestors to carry on, while some start a new one but their ideas for the business come from the existing ideas in the business world. The amount of profit can vary immensely but if the predetermined idea implies to the business, then it makes the person related to, a businessman.

A businessman chooses a business that can provide him maximum profits and minimum risks. However, it is well-understood that he has to face a lot of challenges for his survival because of the competition that exists in the market. Yet, he has a fewer amount of risks as he doesn’t do anything new that can create risks.

Who is an Entrepreneur

We have well-known the characteristics of a businessman, so the question arises, who is then an entrepreneur. That businessperson who starts their business with a new idea or innovation, then he is said to be an entrepreneur. The innovations and ideas can change the perspective of that particular business or even add a brand new venture to this business world.

An entrepreneur has to be creative in his ideas and thus faces a lot of risks posed to his business. The entrepreneur can make implications for his new ideas and plans in the functioning of the products of his business and even can come up with a new business called start-up.

For example, McDonald’s was the first restaurant chain of its own kind and was a start-up for a new type of innovative business. It provided new insight into the retail chain industry. No one could even think of the concept to be such a boom. So we can say that entrepreneurs take huge risks but if implied with a positive outlook, it can prove to be a great success.

Difference Between Businessman and Entrepreneur

The detailed characteristics of both the businessman and entrepreneur have been discussed and now it’s time to see the differences between the two. An entrepreneur creates new ideas and innovations and puts them in their new start-up and most of the time, the start-ups revolutionized the innovative concept of the venture while a businessman keeps the old ideas and starts a new or existing business.

The businessman faces great competition and rivalries while the entrepreneurs have a minimum amount of competition because of their new ideas. A businessman has to take his place in the existing market while an entrepreneur makes a new market and creates competition. Due to being the creator of a business of his own kind, an entrepreneur is the market leader while the businessman is the market player.

The existing and conventional ideas are used by a businessman for establishing and growing his business and therefore the risks associated with the business are minimal. While an entrepreneur uses new innovative ideas for the starting of his business, therefore, the risks and failures associated with the business are very high.

A businessman observes his business from a profit point of view. He orients his efforts in making more money and grows his business, while an entrepreneur focuses on the implication of his ideas and the better utilization of his innovations.

The business of an entrepreneur though becomes a large profitable market, later on, initially, it may not be accepted by the mass. The competition and rivalry faced by a businessman are very large however, this is not the case with the entrepreneurs. They are unique of their kind. Also, the customers decide the outlook of both of them towards them.

The customers are the source of earning for his business and have economic value while an entrepreneur focuses on the services and relationship with the customers in a long race. Profit proves to be secondary for the entrepreneurs.

Advantages and Disadvantages of Business and Entrepreneurship

Both business and entrepreneurship have common advantages like both of them contribute to the economic development of the country and both create job opportunities in this time when the unemployment rate is very high.

They provide a sense of freedom to the owner and give space for the new ideas and innovations to be applied to their businesses and satisfy the creator for its type of environment at the workplace. The main objective of both types of business is to create employment by utilizing the finance and creation of the ideas of the businesses.

Conclusion

The businessman and an entrepreneur both have insights to develop their business and take them to heights, be it financially focused or idea focused. By any means, both of them strive for the success of their businesses and ideas.

The entrepreneur achieves this through his innovative ideas and by implementing the idea of utilizing and coordinating all the types of resources and a businessman achieves through the competition outlook and by developing his business through providing the best product or the service as much he can.

The difference between the businessman and entrepreneur is discussed only to understand the approach that both of them keep for their business. However, both of them have their own importance in the terms of economic growth.

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Business Talk

Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.