DuntonLing94
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are more often than not interchangeably used. I too happen to be guilty of using one or the another sometimes. However, Personally i think that there is a significant difference 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 other hand follows a well known path and takes lesser risk than an entrepreneur.Let us look at a few of the points where entrepreneurship is different from running the business.
Entrepreneur are in the company of creating new things The purpose of business is 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 however the fundamental principal remains the same. Entrepreneurs create something new. They identify an issue and try to create innovative solutions which help reduce and sometimes eliminate problems. Even when they do trading, they'll apply innovative methods to it. Allow me to provide you with a good example. If an who owns retail chain is adding internet sales among his channel, he's just being a businessman looking for new methods for getting good business. However if he goes an creates an innovative product which never existed before, he's being an entrepreneur. Here, he's taken the danger upon himself. Entrepreneur's "Business" is exclusive An entrepreneur will not operate in places that there is already an audience. He will use his scarce money to explore new. He'll for instance, go for 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 their own money first Since people are not convinced of his ideas, entrepreneur needs 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 can get external finance. This is as opposed to a regular business, where it is known that market exists and hence investors tend to be 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. A successful entrepreneur reaps more monetary benefits than his business counterpart. A normal business with lower risk can 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 certainly more riskier and uncertain than conducting an ordinary business. An entrepreneur faces the question almost daily about success of his product, price of developing the product, customer's adoption, team motivation and everything else. There's uncertainty and un-evenness of sales. A normal 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 canrrrt do it alone. So a business owner constantly needs to remind his team and himself by what they are creating and why it'll work. A business owner has to always look for new ways to motivate the workers. The roles of employees change frequently based on the perceived business conditions In business however, the roles of employees are same through the life time from the business Entrepreneurs share the success with the team Entrepreneurs do not have much cash to provide. Hence they offer equity for their employees. Once the venture is successful everyone who 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 towards the founders and employees of the company. A company however is less available to sharing equity with employees and would pay higher salaries to compensate for this.
I nowhere say that businesses cannot be entrepreneurial or the other way around but that there is a significant differences between the way a entrepreneurial venture along with a business works. A company however can become entrepreneur by doing something innovative while entrepreneur can reduce the uncertainty when you are a lot more like a business.
