10 Major Differences Between Entrepreneur and Businessman with Examples
Understanding the distinction between an entrepreneur and a businessman is vital in Commerce. Both roles contribute to economic activities, but their approaches, mindset, and impact on the market are different. Grasping this concept helps students prepare for business decisions, recognize opportunities, and answer examination questions accurately.
Meaning of Businessman
A businessman is a person who starts or operates a business based on an existing idea. Typically, businessmen enter industries with proven demand, focusing on activities already popular or profitable in the market. The primary goal is revenue generation by effectively running commercial or industrial ventures.
Businessmen prefer tried and tested business models. This approach means the risks are usually lower, as many companies already offer similar products or services. Their main strategy is to attract customers in a competitive environment.
Examples of businessmen include owners of garment shops, saree stores, grocery shops, and furniture stores—businesses which rely on established methods and markets.
Meaning of Entrepreneur
An entrepreneur is an individual who develops and implements a unique business idea or innovation to address a market gap or introduce change. Entrepreneurs are creative, often taking high risks to launch startups with original concepts.
Entrepreneurs coordinate resources—including land, labour, and capital—to bring new products or services into existence. Their efforts often lead to the creation of new markets and can transform industries by introducing something not previously available.
Prominent examples of entrepreneurs are Mark Zuckerberg (co-founder of Facebook), Bill Gates (founder of Microsoft), Steve Jobs (co-founder of Apple), and Larry Page (co-founder of Google). These individuals initiated ventures based on innovative ideas, which changed the way society works.
Key Differences: Entrepreneur vs. Businessman
A comparison between an entrepreneur and a businessman clarifies their distinct roles in the world of Commerce. Entrepreneurs are innovators; businessmen are executors within existing frameworks.
| Particulars | Entrepreneur | Businessman |
|---|---|---|
| Definition | Has a unique idea and establishes a new venture | Establishes a business using an already existing idea |
| Market Position | Market leader | Market player |
| Market | Creates a new market for own ideas | Makes space in an already existing market |
| Nature | Intuitive and visionary | Calculative and practical |
| Risk Factor | Very high risk | Lower risk |
| Method of Operation | Uses unconventional and innovative methods | Uses traditional and established methods |
| Focus | Long-term vision, values customers and employees | Oriented towards immediate profits |
| Goals | Sets long-term, transformative goals | Aims for short-term profits |
| Competition | Faces little competition initially due to uniqueness | Faces intense competition among similar businesses |
Examples for Clarity
- Entrepreneur: Steve Jobs introduced the iPhone, revolutionizing mobile communication.
- Businessman: The owner of a retail garment shop selling items already available in the market.
Step-by-Step Approach to Analyze Entrepreneur vs. Businessman
- Identify if the business idea is unique or commonly found.
- Evaluate whether the individual is creating new demand or meeting existing demand.
- Assess the level of risk involved—high, uncertain risk suggests entrepreneurship.
- Observe the business's long-term vision and whether it uses innovative methods or traditional frameworks.
- Examine market position: a leader and innovator is often an entrepreneur, a participant in existing markets is a businessman.
Key Principles and Applications
- Innovation and leadership define entrepreneurship; replication and management are the domains of businessmanship.
- Entrepreneurs contribute to economic development by introducing change and creating jobs in new sectors.
- Businessmen are crucial for stabilizing and expanding established sectors within an economy.
Quick Practice Questions
| Question | Sample Answers/Options |
|---|---|
| Identify: Is the founder of a new food delivery app based on a new technology an entrepreneur or a businessman? Why? | Entrepreneur. They introduce an original idea in the market. |
| Who faces more market competition: a businessman or an entrepreneur in the initial phase? | Businessman, as he enters a saturated market with many similar firms. |
Next Steps for Deeper Learning
- Summarize key differences and reproduce them in your own words for better retention.
- Review practical business cases and identify whether they relate to entrepreneurship or businessmanship.
- For additional revision and structured concept tests, explore live sessions and topic modules at Vedantu.
A solid understanding of the difference between entrepreneur and businessman will help you score better in Commerce and Business Studies, and also build stronger business awareness for real-world applications.
FAQs on Difference Between Entrepreneur and Businessman: Commerce Guide
1. What is the main difference between an entrepreneur and a businessman?
The main difference is that an entrepreneur creates and launches new business ideas or innovations, while a businessman typically operates within existing markets using established business models.
Key distinctions include:
• Entrepreneurs focus on innovation and unique value creation.
• Businessmen prioritize profit through conventional operations.
• Entrepreneurs are risk-takers; businessmen prefer tried-and-tested paths.
2. Who takes more risk: entrepreneur or businessman?
An entrepreneur takes more risk compared to a businessman. Entrepreneurs face high uncertainty as they introduce new products or services to the market, while businessmen usually deal with lower and more predictable risks, operating established business models.
3. Give an example to explain the difference between an entrepreneur and a businessman.
Example:
• Entrepreneur: Kunal Bahl (Snapdeal) started an innovative e-commerce business in India, introducing a new way of online shopping.
• Businessman: Kishore Biyani (Future Group) expanded supermarket chains by following existing retail business models and focusing on growth within established markets.
4. Can a businessman become an entrepreneur?
Yes, a businessman can become an entrepreneur if they develop and implement a unique idea or introduce innovation in their industry. When businessmen move from traditional business to launching new concepts, they take on the entrepreneurial role.
5. What is an entrepreneur in simple words?
An entrepreneur is a person who develops a new business idea, starts a company, and takes financial risks in hope of profit and growth.
Simple points:
• Initiates innovation
• Creates jobs
• Takes risks
• Builds something new
6. What is the meaning of businessman?
A businessman is an individual who operates a business based on an existing idea or concept, mainly focusing on making profits through commercial or industrial activities.
7. What are the similarities between an entrepreneur and a businessman?
Similarities:
• Both aim to generate profits and grow their ventures.
• Each manages resources such as money, employees, and time.
• Both require leadership, decision-making, and management skills.
• Both can contribute to economic growth and job creation.
8. Who is bigger, an entrepreneur or a businessman?
The size or impact between an entrepreneur and a businessman depends on the scope of their ventures. Entrepreneurs can become bigger if their innovations revolutionize markets, while some businessmen run large enterprises. Size is determined by business scale, not the role alone.
9. What is the difference between entrepreneur and intrapreneur?
An entrepreneur starts and owns a business, taking personal financial risks, while an intrapreneur innovates and manages new projects within an existing company, using the company's resources and bearing less personal risk.
10. What characteristics define an entrepreneur?
Key characteristics of an entrepreneur:
• Creativity and innovation
• High risk-taking
• Leadership and vision
• Resilience in facing challenges
• Commitment to value creation
• Ability to spot opportunities
11. Do entrepreneurs always succeed where businessmen only follow trends?
No, entrepreneurs do not always succeed; they often face higher risk and possibility of failure due to new and untested ideas. Businessmen usually follow proven trends, which can be more stable but potentially less innovative.
12. Why is it important to distinguish between an entrepreneur and a businessman for Commerce exams?
Understanding the difference ensures accurate answers in exams, helps grasp core business concepts, and enhances the ability to apply theory in real-world scenarios. It improves conceptual clarity and avoids common misconceptions in Commerce studies.
