Often the words “entrepreneur” and “businessman” are used interchangeably. But the fact is that the meaning they signify is as different from each other as it can possibly be. In course of ignorance, many businessmen label themselves as entrepreneurs.
A businessman is any person that engages in a series of economic activities to earn a profit. An entrepreneur, on the other hand, is someone who conceives an idea or a solution to a current problem that the society is facing, finds investors and sets up an enterprise to offer his expertise to the general public.
There are many differences in the way both think, operate, and do business.
- A businessman starts his business with an already existing and mostly a well-exploited area whereas an entrepreneur conceives a fresh concept/idea/solution to start his enterprise.
The entrepreneur has an object to provide a never-tried-before solution to an existing problem instead of capitalizing on a tried-and-tested idea.
- A businessman is afraid to take risks whereas an entrepreneur is always ready to plunge deep in.
A businessman is apprehensive of trying new things. An entrepreneur is almost habitual of taking risks.
- A businessman is concerned with hiring people to increase his business productivity whereas an entrepreneur brings productivity in his employees.
An entrepreneur hires people and converts them into a pool of resource which can be easily and effectively tapped by the society.
- A businessman shies away from changes, and often finds him at the receiving end of turbulent business environment whereas an entrepreneur is always eager to face challenging business conditions.
A businessman is apprehensive of changes whereas an entrepreneur embraces changes.
- A businessman, more often than not, sticks with his older products and is afraid to innovate. An entrepreneur is renowned for his knack of innovating and creating a better product for the society.
An entrepreneur thrives on his risk taking capabilities and strives to outshine all his previous products each time.
- A businessman stays with the more traditional way of doing business whereas an entrepreneur is obsessed with unconventional way of doing things.
Beginning from the product idea and going till after the product has been sold, an entrepreneur makes an effort to be boldly unconventionally different.
- A businessman is known for making revenue whereas entrepreneurs are focused on creating value.
Adding value to the society is the reason entrepreneurs exist. Entrepreneurs want to bring in a revolutionary change in the way society thinks and works.
A businessman adopts an idea, starts a business and brings it to life whereas an entrepreneur plants the seed, nourishes it over years and creates a value-generating asset for the world, he brings life to his business.