The entrepreneurs and businessmen are generally misunderstood and look similar term but conceptually, there are critical differences between their intention approach to business.
In simple words, the entrepreneurs and businessmen have their own distinct approach and belief towards businesses, however, the final goal of both of them is to make profits by providing whatever products or services they are offering to the society.
In this article, we will briefly discuss a few other critical difference between entrepreneurs and businessmen and you will come to how these two terms are distinct from each other by the end of this article.
But before we go ahead, we need to understand what exactly mean by the terms entrepreneurs and businessmen to better understand their differences.
Entrepreneurs And Businessmen:
A businessman is a person who set up/ perform or try to invest his funds in well established, tried and tested business models which are generating profits for years.
Such business models are less risky and provide assured but less profit as compared to other innovative business models.
Hence, we can conclude that a businessman is those individuals who agree to work with less profit-making businesses but don’t want to take high risk and believe more over traditional and established business models.
On the other hand, an entrepreneur is an individual who believes in discovering and creating a business opportunity that brings a huge revolution in society. An entrepreneur formulates his own path by his innovative and unique thoughts process and business ideas.
The entrepreneurs focus on developing problem-solving products and services that serve the entire world, however, which turn into profits for their organisation at a later stage.
The entrepreneurs encounter lots of challenges, rejections and risk due to the new concept of business. Hence, they bear a high degree of risks but if the idea became successful, they make a huge profit in a shorter time period.
Now let us understand the head to head difference between entrepreneurs and businessmen.
Entrepreneurs vs Businessmen:
|Nature||The entrepreneurs focus on developing problem solving products and services that serve the entire world, however, which turn into profits for their organisation at later stage.||A businessman is the person who set up/ perform or try to invest his funds in well established, tried and tested business models which are already generating profits.|
|Known As||Market Leaders||Market Players|
|Risk Tolerability||High Risk Taker||Calculative Risk Taker|
|Primary Goal||Serve the Society (Then Profit)||Profit Oriented|
Difference between Entrepreneurs and Businessmen:
The entrepreneurs and businessmen can be distinguished based on following aspects.
As we discussed above, the entrepreneurs are innovators and make his own unique business model with an intention to serve the society even if this another matter that business idea turns into profit in future.
On the other hand, the businessmen believe to focus on setting up/ operating those business models which have been discovered and proven for years. In a nutshell, the businessmen are the person who follows someone else paths with a motive to make a profit by hook or by crook.
2) Risk Margin:
The first-ever factor that comes in mind when it comes to comparison between entrepreneurs and businessmen’s approach is the degree of risk.
The entrepreneurs carry a high degree of risk become they introduce new ideas or methodology of business in the market.
There are different types of risk associated with new products/ services or strategies and it unpredictable how the customers will respond. The world is continuously changing, there needs to do a lot of research and development before launching a new concept and if the business fails, the entrepreneurs lose their time, effort, energy and resources.
However, in the case of business owners, they work on tried and tested models through which many other businessmen have been making profits for decades. They are well aware that they require to follow footprints of those businessmen to make assured returns.
Therefore, businessmen typically don’t ready to bear high risk like entrepreneurs.
3) Employee’s Management:
The entrepreneurs have always been looking for creative, enthusiastic, passionate employees who think according to them. They never forget to take feedback from their employees and customers on regular basis.
The entrepreneurs always encourage their employees for innovative and creative ideas. They are very friendly in nature and always familiar with their employees and because of such nature, their employees sustain longer with the company.
The businessmen, on the other hand, are very bossy nature and treat their employees as a servant. They expect their employees to work harder in less compensation. They always try to cut the expenditure to increase their profit ratio, therefore, they expect more task from less workforce.
Thus workload of their employees is more, hence they don’t stay longer with their boss.
4) Adoption of New Technology:
The entrepreneurs are always curious to experiment with new technologies, machinery, tools, software which could be beneficial for the development of the company. They don’t hesitate to adopt newer technologies which sometimes fails but the entrepreneurs overcome such circumstances and take learning from such mistakes.
Nevertheless, An entrepreneur keep trying new things for the betterment and growth of the company.
On the other hand, the businessmen don’t adopt new technologies, software, machinery etc easily because they think their traditional method is the best and fine way of doing business. However, some businessmen accept new technologies because they know that they have to change according to market demand.
5) Time Management:
Time is very precious for business people. The businessmen don’t waste time as their businesses are highly competitive and to beat the market competition, they have to perform every activity on time.
Whereas, the entrepreneurs are slow and steady in nature. They utilise a maximum of their time on innovation, research, formulating new strategies, product design & development, brainstorming to become a market leader.
6) Competitor Handling:
The businessmen typically beat their competitors by infusing more money into the business or by reducing margins on products/ services or sometimes collaborate their competitors to work over certain market segments.
However, the entrepreneurs really don’t care about competition instead they focus on features and usability of products/ services. In other words, entrepreneurs are the first mover, hence they don’t encounter competition and if any they win by implementing their marketing strategies and by offering better products or services than their competitors.
Hope you would have understood the fundamental difference between entrepreneurs and businessmen. We tried to cover all significant parameters to differentiate an entrepreneur and business person. Although there are some other parameters as well on which the nature of both can be distinguished.
All in all, the difference between entrepreneurs and businessmen lies in their approach and thought towards businesses. They follow separate mechanisms to accomplish their aim of making a profit.
Difference Between Entrepreneurs and Managers