The main difference between entrepreneur and businessman is that a businessman is a person who sets up his business as a new entrant to the market in an existing market on commercial or industrial grounds. Whereas, an entrepreneur comes up with a unique idea or a concept to start an enterprise and makes it into reality.
Many people use the terminologies, businessman and entrepreneur, interchangeably. They use these two terms to refer to anyone who owns a business and makes money. However, there are distinct differences between an entrepreneur and a businessman. Most businessmen go for businesses with a high demand, which ensures huge profits, disregarding the uniqueness of business ideas. In contrast, entrepreneurs establish startup companies adopting innovation, new ideas, or business processes. They are always willing to take risks and meet uncertainties of the business.
Key Areas Covered
1. Who is a Businessman
– Definition, Features
2. Who is an Entrepreneur
– Definition, Features
3. Similarities Between Entrepreneur and Businessman
– Outline of Common Characteristics
4. Difference Between Entrepreneur and Businessman
– Comparison of Key Differences
Key Terms
Businessman, Business, Entrepreneur
Who is a Businessman
A businessman is an individual who sets up his business as a new entrant to the market. He basically disregards the uniqueness of the business ideas and instead prioritizes producing the products or services with higher demand. Therefore, a businessman has to face tough competition. This is because there are hundreds of competitors already existing in the market, conducting the same business. However, the risk factor to collapse is low as he is following a path that is already taken by others.
Above all, the main goal of a businessman is to employ his human, intellectual and financial resources available in such a way that it would ensure the maximum production possible and the flow of high profits toward him.
Who is an Entrepreneur
An entrepreneur is an innovator of novel ideas, goods, services, and business and who bears lots of risks in creating a new business. They use their skills and take the necessary initiative to recognize the needs of the customers and to introduce new ideas to the market. Therefore, entrepreneurs are significant to any economy.
Entrepreneurs that prove to be successful in taking on the risks of creating startups are rewarded with profits, fame, and continuous growth opportunities. Moreover, entrepreneurship that fails results in losses and has less possibility of survival in the markets. However, entrepreneurs are known for their creative approach in contrast to the profit-based approach of businessmen.
Similarities Between Entrepreneur and Businessman
- Businessmen and entrepreneurs act as decision-makers.
- Moreover, both have managing abilities and can perceive and project forward.
- They possess great time management, organizational, and monitoring skills.
- In addition, they have good listening and communication skills.
Difference Between Entrepreneur and Businessman
Definition
An entrepreneur is a person who uses his unique idea to run a startup company, while a businessman is a person who starts a business on an existing concept or idea.
Market
A businessman makes his place in the market with his efforts and dedication and is considered a market player, whereas an entrepreneur creates the market for his own business and is considered a market leader.
Nature
A businessman is naturally calculative, while the nature of an entrepreneur is intuitive.
Risk Factor
Since a businessman follows the paths created by other businessmen, the possibility of failure is very less. This is the opposite in the case of an entrepreneur. He or she faces a lot of risks.
Methods
The methods used by an entrepreneur to run his business are quite unconventional methods than those employed by a businessman.
Approach
A businessman has a profit-oriented approach; however, an entrepreneur gives more importance to its employees, customers, and the public.
Competition
Compared to an entrepreneur, a businessman faces extreme competition as he happens to compete in an already existing market.
Conclusion
In brief, a businessman is a person who approaches an already existing market with a profit oriented-approach while the market approach of an entrepreneur is comparatively creative and unique. In addition, an entrepreneur is a high-risk taker, whereas the risk of failure of a businessman takes a comparatively low percentage. Thus, these are the main differences between entrepreneur and businessman.
Reference
1. “30 Ways to Become a More Successful Entrepreneur.” Neil Patel.
2. “Five Qualities of a Good Businessman.” Institute of Entrepreneurship Development.
Image Courtesy:
1. “Woman-entrepreneur-businesswoman-5218083” (CC0) via Pixabay
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