One of the main differences between entrepreneur and businessman is how they approach the business. A businessman is an individual who conducts commercial activities by following an already established path.
In contrast, an entrepreneur is someone who locates a demand for a particular product in the world and proceeds to take steps to fulfil it. He/she thereby, creates a new path for others to follow. Therefore, an entrepreneur is considered to be a market leader while a businessman is a market player.
Solve it Yourself: find out the names of some entrepreneurs and businessmen
Business and entrepreneurship
All commercial, professional, or industrial activities that are responsible for providing goods and services to consumers in exchange for profit is a business. Consequently, businessman meaning an individual who is responsible for running the business efficiently and fulfilling its objectives. There are different types of businesses such as –
Sole Proprietorship – This is a type of business where it is owned and run by the same person only. It is suitable for a small-scale business.
Partnership – As the name suggests, the responsibility of ownership and management is shared by two individuals. The profits and losses are also divided equally or as decided in the partnership agreement.
Corporation – Here, the business has a separate, legal entity from its owners or founders. The responsibility of running a company is shared by a board of directors. The company is responsible for its debts and assets.
Cooperative Business – This type of business is owned equally by a group of individuals or entities, all of whom utilise the products and services offered by the business.
Now, on to entrepreneurship!
The difference between entrepreneur and entrepreneurship is that the process of setting up, organising and running a small enterprise is known as entrepreneurship. In contrast, an entrepreneur is someone who creates novel products and carves new paths for others.
However, one should not confuse between business and entrepreneurship. While businesses focus on selling already existing goods and services, entrepreneurship focuses on offering innovative products that will add value to customers. This value can range from aesthetic to social to financial.
For instance, if you consider opening a pet store in your locality that does not have one, you are starting a business. That is because the idea of a store for selling pet products already exists. However, if you devise a new pet product and offer it for sell, then that will be considered as entrepreneurship. The different types of entrepreneurship ventures are –
Public Entrepreneurship – Entrepreneurship that is undertaken and funded by the public sector. It facilitates the development of an economy.
Private Entrepreneurship – Enterprises that are created and initiated under the private sector. Sometimes, governments offer aid and funding to encourage more individuals to set up their businesses.
Opportunistic Entrepreneurship – The kind of entrepreneurship that identifies with an opportunity and making use of it is regarded as opportunistic entrepreneurship.
Individual Entrepreneurship – When an individual sets up his or her enterprise, it is known as individual entrepreneurship.
Acquisitive Entrepreneurship – It associates with learning from other competitors in the market and using the knowledge to develop a new way of offering a service or running a business.
Additionally, we can differentiate entrepreneur vs businessman on other vital points. These pointers are given in the table below –
Think and Answer: Can you name some other differences between businessman and entrepreneurs?
Advantages of Business and Entrepreneurship
Nevertheless, despite the entrepreneur and businessman difference, advantages offered by them are mostly similar. Some of them have been listed below –
Suitable for the Economy – Businesses help in boosting the economy of a country.
Provides Job Opportunities – Both businesses and entrepreneurship offers employment opportunities and improves the quality of life.
Independence – A businessman is his/her boss. They decide how to run the business, with whom they will do business and more control over their work hours. Additionally, businesses are financially more rewarding compared to salaried jobs.
Creative Freedom – There are fewer restrictions and more room for entrepreneurs to showcase their creativity.
Personal Satisfaction – Owning and running a business gives rise to a sense of fulfilment.
Facilitates Research and Development – Entrepreneurs carry out a lot of research and experiments before launching any particular product.
Do it Yourself: can you think of any other advantages of entrepreneurship and businesses that benefit the society?
1. What is the Difference Between Businessman and Industrialist
An individual owning and running their own business is considered as a businessman. The business can be a small shop or a huge company. Industrialists are those that create a whole industry or head a particular industry. Thus, to conclude, all industrialists are businessmen, but not all businesspersons can be an industrialist.
2. State the Significant Difference Between Entrepreneurship and Manager
Entrepreneurs create their products and set up news ways of carrying out businesses, thereby becoming the market leader for a particular product. On the other hand, a manager is someone who is employed by the organisation to oversee the day to day functioning of the organisation.
3. What are the Seven Characteristics of Entrepreneurs?
The seven characteristics of entrepreneurs include – they are risk-takers, innovative thinkers, determined, opportunistic, not profit-oriented, hard-working and passionate.
4. Define Who an Entrepreneur is?
An entrepreneur is someone who can identify the need for a product and sets up a business venture to develop and market that product.