Although the distinction between an entrepreneur and a businessman is sometimes blurred, there are certain differences between the two. If people were still living in the medieval era, a merchant would be a businessman, and an inventor would be an entrepreneur.
Merchants traded products, foods, castles, and other items. Inventors came up with innovative ideas, such as the agricultural system, to better the harvest, and they made money off of it.
Key Takeaways
- An entrepreneur creates a new business venture or takes an existing one in a new direction, whereas a businessman manages an existing business.
- Entrepreneurs focus more on innovation, creativity, and risk-taking, while businessmen focus more on stability, growth, and profitability.
- Entrepreneurs start small and have a higher tolerance for risk, while businessmen have more experience and resources to manage a larger business.
Entrepreneur vs Businessman
An entrepreneur is an individual who creates, manages, and operates a new business venture. They may take on a great deal of financial risk in order to start a new business. A businessman is an individual who is primarily involved in the management and operation of an existing business. Businessmen are focused on maximizing profits.
An entrepreneur is a person who has a unique concept for starting and running a new business and making a difference in the world. An entrepreneur is a person who is very creative and innovative and who is willing to take risks and deal with the unpredictability of business.
The term “start-up” refers to a business that is launched for the first time by entrepreneurs with a novel concept.
The entrepreneur is an essential aspect of the operation, as he or she constructs and deploys the other operations’ functions, such as labor, land, and capital. The entrepreneur evolves into a businessman in the future.
A businessman is someone who operates or starts a firm based on a tried-and-true business model. The businessman chooses whether to pursue a business that is in high demand, or that will provide him with the most profit.
Because many companies with identical business ideas already exist on the market, the firm confronts intense competition. However, the risk factor is low because the concept has already been tried and tested by other companies; thus, there is little likelihood of failure.
Comparison Table
| Parameters of Comparison | Entrepreneur | Businessman |
|---|---|---|
| Definition | A person who launches any enterprise or company with extremely new and fresh ideas along with comprising other commercial activities | A person who establishes their business and the products are already available but with better services or qualities |
| Nature | Intuitive | Calculative |
| Market | Builds new market | Try to establish in the market with others |
| Market Position | Leader | Player |
| Risk | Extremely high | Low |
| Approach | Atomistic | Holistic |
| Methods Applied/Used | Unconventional | Conventional |
| Competition | Less | More |
| Orientation | People | Profit |
What is Entrepreneur?
An entrepreneur is someone who comes up with a new idea or concept for a business and turns it into reality. He is the one who bears the brunt of the company’s risks and uncertainties.
The entrepreneur’s endeavor is known as a Startup Company, and it is developed for the first time in terms of an idea, innovation, or business method.
He or she is the one who always dominates the market, regardless of how many competitors arrive later. Their position will remain unchanged.
In economics, the entrepreneur is the most significant element of production because he or she brings together and mobilizes the other three factors of production: land, labor, and capital. These entrepreneurs eventually become businessmen.
Entrepreneurs are well-known for their innovative thinking. They are in charge of bringing in new ideas and managing resources. With their products and services, they make a difference in the world.
Bill Gates (founder of Microsoft), Larry Page (co-founder of Google), Mark Zuckerberg (co-founder of Facebook), Steve Jobs (co-founder of Apple), and others are real-life examples of such entrepreneurs.
What is Businessman?
A businessman is someone who engages in any activity that is related to business or industry. He establishes his business as a new entry as well as a replacement for an existing business.
Most business people, regardless matter how unique their ideas are, select a business that is in high demand or can make them a lot of money over one that is distinctive.
Because there are already hundreds of competitors in the market doing the same thing, a businessman confronts intense competition. Although the danger is low since he is traveling down a path that his competitors have already tested, the chances of failure are slim.
The basic purpose of a businessman while engaging in economic activities is to generate revenue through the use of human, financial, and intellectual resources. In this sense, the merchant views customers as kings of business.
Main Differences Between Entrepreneur and Businessman
- An entrepreneur is said to be defined as the person who starts and establish any company or enterprise with his unique purpose of resolving idea that serves the society, whereas comparatively, on the other hand, a businessman is said to be a person that establishes any existing idea-driven business with providing better facilities, features, qualities, services, etc.
- The nature of any entrepreneur is said to be very intuitive towards their work, whereas comparatively, on the other hand, the nature of a businessman is very calculative as they emphasize numbers.
- An entrepreneur creates and builds up the new market for their products whereas comparatively, on the other hand, the businessman tries to establish their company within the market like others.
- An entrepreneur is considered as the leader of the market while comparatively, on the other hand, the businessman is considered as the player in the market.
- An entrepreneur faces challenges with many high-risk factors while comparatively, on the other hand, a businessman doesn’t have to face many risk factors in the market.
- Most entrepreneur follows an atomistic approach, whereas comparatively, on the other hand, any businessman follows a holistic approach.
- The methods applied or used by an entrepreneur are much unconventional, whereas comparatively, on the other hand, the methods applied by a businessman are conventional.
- The competition faced by an entrepreneur is less as quite a few people must have known or created the idea while comparatively, on the other hand, a businessman has to face much competition to stay in the market.
- The orientation or the target of an entrepreneur is people, whereas comparatively, on the other hand, a businessman’s target or orientation is on the profit margin.
References
- https://www.tandfonline.com/doi/abs/10.1080/02642060802624324
- https://link.springer.com/chapter/10.1007/978-3-540-48543-8_1
- https://dergipark.org.tr/en/download/article-file/557250
- https://publikace.k.utb.cz/handle/10563/1005234
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