Entrepreneur vs Businessman
The key difference between entrepreneurs and businessmen lies in the fact that an entrepreneur is a person who comes with a unique business idea and starts his own startup company on that idea whereas a businessman is a person who starts his company using an old business concept or an idea.
An entrepreneur creates a new market for his revolutionary and innovative products whereas a businessman applies different methods and proven strategies to make his way into an already established market.
It’s easy to mix Entrepreneurs and Businessman but they are different. “Entrepreneur” is a creative person and makes his path to start any business or set up a company.
Revolution is his primary goal by providing new solutions. He brings new strategies and ideas and has the ability to bring them into reality and can lead the market because his ideas are unique.
On the other hand, a “Businessman” is a person whose commercial and industrial purpose surrounds all activities.
He sets up a new business by following the already existing ideas. If he has the experience and can use ideas wisely then he can turn every opportunity into profit. The real achievement of a businessman is to gain profit.
Comparison Table Between Entrepreneur and Businessman (in Tabular Form)
|Parameter of Comparison||Entrepreneur||Businessman|
|Definition||A creative person who introduces new ideas to run businesses.||A person who follows the already existing ideas.|
|Goal||Customer oriented||Profit oriented|
|Market position||Market leader||Market player|
|Orientation||Opportunity oriented||Resource oriented|
What is an Entrepreneur?
A creative or innovative person who brings a new idea to start a business is called an ‘Entrepreneur”. As he introduces new ideas to the world, he faces many hurdles and risks to launch these ideas.
But once he crosses all the barriers, he can dominate the market because his idea is unique, so he has no competitor. He plays a pivotal role in upgrading any economy because he introduces a new path to success.
What is a Businessman?
A businessman is a person who follows the traditional ways of business or who follows the ideas which already exist.
He has a low-risk margin because he follows the idea which is already tested by others, so he first calculates all the pros and cons and also estimates the profit before choosing any business strategy.
The main focus of a businessman is to beat his competitor and gain more profit and success.
Main Differences Between Entrepreneur and Businessman
Nature and Aim
One of the main differences between an entrepreneur and a businessman is their nature and aim.
Entrepreneur devotes all his efforts to make his innovation successful, and for this, he doesn’t care about his time and resources. His main aim is to introduce a new path of success to the world.
Due to his enthusiastic nature, he never gives up and always tries new strategies and motivate himself to make all his dreams come true.
On the other hand, the businessman has a different nature. He never wants to test any new strategies in his business and always follows tested ideas, which makes his business successful.
His main aim is to make his business stronger and grow it fast so as to make it more profitable.
In the case of an entrepreneur, the risk range is higher because he introduces new ideas for business.
Hence, there is always a high risk because if a new idea or strategy fails, his time, money, and all resources go waste. Of course, he learns new things is the process of failure.
On the other hand, if his idea becomes successful, then he can lead the market because he has no competitor.
But for a businessman as according to his nature, the risk range is comparatively low because he always follows the safe side, and his aim is profit-oriented.
He always supports those opportunities that can turn his efforts into profit. But there is a drawback that, as he follows already existing path, he has several competitors to beat.
Attitude With Employees and Customers
An entrepreneur has a friendly nature and always finds those companions who never work like a machine and have patience in them.
Entrepreneur likes people who have an aim and take responsibility to give benefits to customers through their innovations.
A businessman has a bossy nature and works as a manager or employer and always hires those people who are experts in their field because he looks for his profit and business growth.
An entrepreneur has a friendly nature, so his workplace is not confined. He wants to make his idea successful, so he has no issue to share his workplace with his co-workers.
He is also open to change his place as per the needs.
But a businessman’s way of work is different.
He works in a large area where he can separate departments or offices of his co-worker and promote the team-work relationship between his employees.
His aim is to make his company reputable and to gain more profit because he has a fixed location.
But one thing is common in both entrepreneurs and businessmen people that they facilitate the productive workplace.
As an entrepreneur has encaustic nature, so he is always ready to take the risk, and if he fails, he can overcome it and find suitable solutions.
But in the case of the businessman, he takes benefit from his experience and makes some anticipating strategies to overcome losses, but once he fails, then he takes more time to overcome his failure.
According to the daily developing world, every next day, new ideas, tools, and machines are introduced in the business world.
And as an entrepreneur has revolutionary nature and can easily accept the latest developments and can overcome the daily changes.
But a businessman follows the traditional ways, so he faces many hurdles and difficulties in adapting new techniques for development.
How to Remember the Difference Between Entrepreneur and Businessman
Time Needed : 2 minutes
Remembering the differences is very simple, just follow our mind mapping guide given below:
- Associate the first word with a thing or item which you see daily
For e.g.: Middle line in letter H for Horizontal.
- Associate the second word with a thing or item which you see daily
For e.g.: The two lines in letter V for Vertical.
- Recall the two words daily two times
During morning and evening bring up the two words in front of you and then recall the things that you had associated with each word.
- Repeat for 7 days
Repeating this process for a week will help you remember the difference between words for a long time.
Frequently Asked Questions (FAQ) About Entrepreneur and Businessman
- What are the 4 types of entrepreneurship?
The four types of entrepreneurship are:
a) Small Business Entrepreneurship: Small businesses can be of any kind such as salon, grocery store, bakery store, and travel agency. Those entrepreneurs run their businesses. Their motive is to feed their family and make a profit.
b) Scalable Startup Entrepreneurship: The motive of scalable startup entrepreneurship is to take a risk and to earn a vast amount of profit.
They do so by collecting funds from the investors and hiring the brightest and best employees for the firm. They convince and attract investors to invest in their business.
c) Large Company Entrepreneurship: Large Company Entrepreneurship refers to the companies that are well established in the market. Their motive is to produce innovative and creative products for the customers.
d) Social Entrepreneurship: Social entrepreneurs work for a social cause. Their motive is to provide goods and services to solve social problems and to create a better world for the living. Social firms are non-profit based firm, but some firms are based on profit.
- Who are the top 10 successful entrepreneurs?
The top 10 successful entrepreneurs are:
- Who is the first businessman in India?
The first businessman in India was Jamsetji Tata (1839-1904). He was the founder of the Tata Group.
He started his business by setting up cotton mills in Bombay and Nagpur. The world-famous Taj Mahal hotel was incorporated by Jamsetji Tata in 1903.
- Who is a trillionaire?
As of now, there is no trillionaire in the world. Jeff Bezos is the world’s wealthiest person. Even he has a net worth of $116.9 billion.
- How much does Bill Gates earn per second?
Bill Gates is the world’s second-richest man right now. He earns around $100 per second. The total net worth of Bill Gates is $110.3 billion.
- Who was the first millionaire?
John Law (1671-1729) is considered as the first millionaire of the world. He was the founder of the Mississippi Company. The word millionaire was invented to describe his wealth.
Learn More With the Help of Videos
In the end, we conclude that the entrepreneur has originality in the idea and has belief to make his own path and take risks but a businessman is an experienced person who adapts to already tested and successful paths after calculating all pros and cons and profit.
Word Cloud for Difference Between Entrepreneur and Businessman
The following is a collection of the most used terms in this article on Entrepreneur and Businessman. This should help in recalling related terms as used in this article at a later stage for you.