User:PlattPuentes364
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are most of the time interchangeably used. I too have been responsible for using one or the another at times. However, Personally i think that there's a factor between your way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is all 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 an entrepreneur.Let's explore some of the points where entrepreneurship differs from running the business.
Entrepreneur are in the business of creating new things The purpose of clients are to recycle these products. Hence business is a lot more like trading. By trading I mean purchasing goods from one place and selling in the other. This may also involve manufacturing at some step but the fundamental principal remains the same. Entrepreneurs create new things. They identify an issue and try to create innovative solutions that help reduce or eliminate problems. Even if they are doing trading, they'll apply innovative methods to it. Let me give you a good example. If an owner of retail chain is adding internet sales as one of his channel, he is just being a businessman trying to find new ways of getting more business. If however he goes an creates an innovative product that never existed before, he's becoming an entrepreneur. Here, he has taken the danger upon himself. Entrepreneur's "Business" is exclusive An entrepreneur will not work in places that there's already an audience. He'll use his scarce money to understand more about new. He will for example, go for new channels of sales( internet, m-commerce etc), innovative products ( a brand new software), innovative marketing techniques( viral marketing) etc. He side steps the marketplace that is too competitive and works in a niche area. Entrepreneur puts their own money first Since individuals are not convinced of his ideas, entrepreneur has to put his money on the line first. He has to reveal that a market are available for the products he is creating. Then only he is able to get external finance. This is as opposed to a normal business, where it's known that market exists and therefore investors are more willing to invest in such businesses Entrepreneurs working with new innovative products have more breakout chances If the risks are high, so might be the rewards. An effective entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns on the capital it invests. The surety of making money in regular business is in addition to that of entrepreneurship though. Entrepreneurs experience more uncertainty than regular businesses Entrepreneurship is definitely more riskier and uncertain than conducting a regular business. A business owner faces the question almost daily about success of his product, cost of developing the product, customer's adoption, team motivation and everything else. There is uncertainty and un-evenness of sales. A normal business however has pretty much regular sales and is less uncertain than an entrepreneurial venture Entrepreneurs share businesses with team Entrepreneurs develop vision plus they cannot do it alone. So a business owner constantly must remind his team and himself about what they are creating and why it will work. A business owner has to always look for new ways to motivate the employees. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same through the lifetime of the business Entrepreneurs share the success with the team Entrepreneurs don't have much cash to provide. So they offer equity to their employees. When the venture is successful everyone that has a shares becomes rich. Among the prime example is Infosys technologies in Bangalore. It's created a lot of millionaires just by distributing equities to the founders and employees from the company. A business on the other hand is less available to sharing equity with employees and would pay higher salaries to pay for this.
I nowhere state that businesses cannot be entrepreneurial or the other way around but that there's a significant differences between the way a entrepreneurial venture along with a business works. A business however may become entrepreneur by doing something innovative while entrepreneur can help to eliminate the uncertainty when you are more like a business.
