DeckardGage443
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 even 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 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 a business owner.Let us look at some of the points where entrepreneurship differs from running the company.
Entrepreneur are in the company of creating something new The purpose of clients are to recycle the products. Hence clients are a lot more like trading. By trading I am talking about purchasing goods from one place and selling at the other. This may also involve manufacturing at some step but the fundamental principal continues to be same. Entrepreneurs create new things. They identify a problem and try to create innovative solutions that help reduce or eliminate problems. Even if they do trading, they will apply innovative techniques to it. Allow me to provide you with an example. If an owner of retail chain is adding internet sales as one of his channel, he is just as being a businessman looking for new ways of getting more business. If however he goes an creates an innovative product that never existed before, he is being an entrepreneur. Here, he has taken the risk upon himself. Entrepreneur's "Business" is unique An entrepreneur will not operate in areas where there's already an audience. He will use his scarce money to explore new. He will for example, choose new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing strategies( viral marketing) etc. He side steps the market that is too competitive and works inside a niche area. Entrepreneur puts their own money first Since individuals are not convinced of his ideas, entrepreneur has to put his cash on the line first. He has to show that a market are available for these products he is creating. Then only he is able to get external finance. This really is in contrast to a normal business, where it's known that market exists and hence investors are more willing to invest in such businesses Entrepreneurs dealing with new innovative products have more breakout chances If the potential risks are high, so are the rewards. An effective entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns around the capital it invests. The surety of creating money in regular clients are more than 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 anything else. There's uncertainty and un-evenness of sales. A normal business however has pretty much 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 an entrepreneur constantly must remind his team and himself about what they are creating and why it will work. A business owner needs to always look for new ways to motivate the workers. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same throughout the lifetime of the business Entrepreneurs share the success using the team Entrepreneurs do not have much cash to offer. Hence they offer equity for their employees. When the venture works everyone that has a shares becomes rich. One of the prime example is Infosys technologies in Bangalore. It has created a lot of millionaires simply by distributing equities towards the founders and employees from the company. A business on the other hand is less open to sharing equity with employees and would pay higher salaries to compensate for it.
I nowhere state that businesses cannot be entrepreneurial or vice versa but that there is a significant differences between the way a entrepreneurial venture and a business works. A company however can become entrepreneur by doing something innovative while entrepreneur can help to eliminate the uncertainty by being more like a company.
