Differences between a Businessman and Entrepreneur

Are you a businessman or an entrepreneur? Have you ever wondered what’s the difference between the two? Business people and entrepreneurs have many similarities. They both provide jobs for the unemployed, give solutions to the consumers, and help in developing the economy of a certain nation. However, they are not the same kind of people.

Most of the people have a misconception that the terms businessman and entrepreneur, carry the same meaning.

A businessman walks on the defined path, but an entrepreneur believes in making his own path, which becomes a guideline for other businessmen. In this article, we will help you know the difference between businessman and entrepreneur.

The question is who is a Businessman and who is an entrepreneur?

A businessman is person who is engaged in carrying out any activity, related to commercial and industrial purposes. He sets up his business as a new entrant in the market as for the existing business. When it comes to originality of ideas, most of the businessmen go for a business which is highly in demand or which can make huge profits for them irrespective of uniqueness.

A businessman faces tough competition because there are hundreds of rivals already existing in the market undertaking the same business. Although the risk factor is low because he walks on a path that is already tested by the rivals so the chances of failure are relatively low. The main objective of a businessman of conducting the economic activities is to generate revenue by employing the human, financial and intellectual resources. By virtue of this, customers are treated as the king of business by the businessman.

While An entrepreneur is a person who conceives a unique idea or concept to start an enterprise and brings it into reality. He is the person who bears risks and uncertainties of the business. The venture established by the entrepreneur is known as Startup Company, which is formed for the very first time regarding the idea, innovation or business process. They are the ones who lead the market always no matter how many competitors will come later, but their position will remain untouched.

In economics, the entrepreneur is considered as the most important factor of production, which assembles and mobilizes the other three factors of production i.e. land, labor and capital. In the long run, these entrepreneurs become a businessman.

Entrepreneurs are known for their creative approach. They introduce innovation and coordinate the resources. They offer such products and services which bring about a change in the world.

Key Differences Between Businessman and Entrepreneur

On originality of  ideal.

A businessman can make a business out of an unoriginal business or product idea. He enters into existing businesses, such as franchising and retailing. He chooses a hot and profitable business idea regardless of whether it is his original idea or borrowed from someone else.
An entrepreneur is an inventor and the first creator of a product. He invests time, energy and money on his own idea. He doesn’t start a business from an unoriginal idea. That is why he starts on a startup while a businessman starts on a business.
On the purpose of doing
Most businessmen are doing business for profit, livelihood, for reaching their financial goals, and for becoming their own boss. Though, there are some business people who are not profit-oriented but people-oriented, that is, they are more concerned on the welfare of their workers and the satisfaction of their customers. Entrepreneurs are more concerned on changing the world. They want to pursue their passion and achieve an ultimate goal. They are not keen on financial returns, rather they are focused on what they can offer to the world. Their purpose for entrepreneurship is simply to make a difference in this world.
On the degree of risks taken
Businessmen take calculated and managed risks. They cannot afford to lose money and suffer from bankruptcy. That is why they always do the Math when it comes to business. Entrepreneurs are like sky divers. They take crazy risks. They often don’t care of losing time and money just to pursue their passion. But since they do it with love, joy and passion, they often gain extraordinary rewards. Entrepreneurs, since they do the things they love the most, they do it with the best of themselves, resulting to greater success.
On how he treats employees

A business owner is an employer and a manager. He hires employees and workers to help his business grow. An entrepreneur is a friend and a leader. He finds peers and PEOPLE, whom he will never treat as machines. He invites them to help them grow.

On how he treats customers.

A business owner usually sees customers as his source of sales and revenues. For him, customers are the lifeblood of his business. An entrepreneur sees customers as his source of duty and fulfillment. For him, customers are his own life blood.

On how he sees the competition

A business owner tries hard to beat his competitors and win the competition. He also considers cooperation rather than competition to achieve certain goals. An entrepreneur tries hard to beat his worst competitor – himself.

On what he thinks of money

Losing money is one of the biggest worries of businessmen. Most business owners rely on a good economy to start, operate and attain success in business, especially in the retail, franchising and financing industry. Entrepreneurs do not worry a lot about money since they can always start from a scratch. Some entrepreneurs don’t really care about money at all.

On how he deals with time

A businessman doesn’t waste time. He always check the clock and doesn’t want any work or output to be delayed out of schedule. He is fast and always on the go. An entrepreneur works like an artist or a scientist in a lab. His product is his masterpiece. That is why he can be slow and could spend a longer period of time to finish and perfect his product.

On how he sees the world

A businessman sees the world as an opportunity. He sees it as an opportunity to make a living. He also sees it as an opportunity help the people living on it. An entrepreneur sees the world as a duty rather than an opportunity.

On how he defines success

A businessman defines success as the success of his business and its stakeholders. Its stakeholders include himself, co-owners, employees, customers, investors, and even his community. An entrepreneur doesn’t define success. He simply do his job and let history defines the success that he accomplished.

Remember both businessmen and entrepreneurs are supposed to be the kind of people that our world needs. A businessman needs an entrepreneur. An entrepreneur may also need a businessman. There can also be a person who is partly a businessman and partly an entrepreneur.