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Seven Top Differences Between Entrepreneurs and Businessmen



Entrepreneurs and businessmen are most of the time interchangeably used. I too happen to be guilty of using one or even the another sometimes. However, Personally i think that there is a factor between the way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a well known path and takes lesser risk than a business owner.Let us look at a few of the points where entrepreneurship is different from running the company.

    Entrepreneur have been in the company of making something new
    The purpose of clients are to recycle these products. Hence clients are a lot more like trading. By trading I mean purchasing goods in one place and selling at the other. It may also involve manufacturing at some step but the fundamental principal continues to be same. Entrepreneurs create new things. They identify an issue and try to create innovative solutions that help reduce and sometimes eliminate problems. Even when they do trading, they'll apply innovative techniques to it. Allow me to give you an example. If the who owns retail chain is adding internet sales among his channel, he's just being a businessman looking for new methods for getting more business. However if he goes an creates a cutting-edge product that never existed before, he's being an entrepreneur. Here, he has taken the danger upon himself.
    Entrepreneur's "Business" is exclusive
    An entrepreneur won't operate in areas where there's already a crowd. He'll use his scarce money to explore new. He'll for example, choose new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing strategies( viral marketing) etc. He side steps the marketplace that's too competitive and works inside a niche area.
    Entrepreneur puts his own money first
    Since people are not convinced of his ideas, entrepreneur needs to put his cash on the road first. He has to show that a market are available for these products he is creating. Then only he can get external finance. This is as opposed to a regular business, where it is known that market exists and hence investors are more willing to invest in such businesses
    Entrepreneurs working with new innovative products convey more breakout chances
    If the risks are high, so might be the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A normal business with lower risk can get lower returns around the capital it invests. The surety of creating money in regular business is more than that of entrepreneurship though.
    Entrepreneurs experience more uncertainty than regular businesses
    Entrepreneurship is definitely more riskier and uncertain than conducting a regular business. An entrepreneur faces the question almost daily about success of his product, price of developing the merchandise, customer's adoption, team motivation and anything else. There's uncertainty and un-evenness of sales. A regular business however has more or less regular sales and it is less uncertain than an entrepreneurial venture
    Entrepreneurs share business ideas with team
    Entrepreneurs build on vision and they cannot do it alone. So an entrepreneur constantly needs to remind his team and himself about what they are creating and why it will work. A business owner needs to look for brand new ways to motivate the workers. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same through the life time of the business
    Entrepreneurs share the success using the team
    Entrepreneurs don't have much cash to offer. Hence they offer equity for their employees. Once the venture works everyone that has a shares becomes rich. Among the prime example is Infosys technologies in Bangalore. It's created a lot of millionaires simply by distributing equities towards the founders and employees from the company. A company on the other hand is less open to sharing equity with employees and would pay higher salaries to pay for this.

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I nowhere state that businesses cannot be entrepreneurial or the other way around but that there is a significant differences between the way a entrepreneurial venture and a business works. A business however can become entrepreneur by doing something innovative while entrepreneur can help to eliminate the uncertainty by being more like a company.