Businessman Vs Entrepreneurs

Although these two terms are quite synonymous, it is still to be noted that there is a huge gap between both of them. The key difference between these two terms lies in the fact that an entrepreneur is generally a person who comes up with a unique idea and then starts his own company on that idea whereas a businessman generally starts his own company but with an existing idea or concept.

An entrepreneur generates a new market for his revolutionary idea wherein on the other hand a businessman comes up with innovative strategies to develop the already existing idea in the market.

It is quite easy to mix up both of them, but lesser known fact is that when it comes to creativity, an entrepreneur triumphs as he is the person creating his own path to start any business. Not to mention that a businessman cannot be creative. They can, but most of their creative resources goes into developing an additional need of an existing product or service.

1. Definition: As already discussed, an entrepreneur is a person who uses creative thinking and innovative ideas to start a business. Since the idea tends to be new, he is faced with a new market with no or very little competition. If the entrepreneur is successful in implementing his idea, he may even dominate the market, thus giving him the market leader advantage. Operating as an entrepreneur also entails a lot of risk. This is because the entrepreneur is not sure how the market might react or respond to his idea, and hence needs to have a precautionary backup for his business if it fails.

On the other hand, a businessman is a person who enters a market where the product or service already exists. This entails him to follow lower risks on his idea failing, as he already knows that people in the market accept that product or service. However, a businessman is responsible to entail his product to be the best by utilizing strategies that might not have been used by other players in the field. The main result a businessman seeks to achieve is to beat his competitors by using profitable strategies.

2. Nature & aim: The nature and aim of both entrepreneurs and businessmen differs a lot. For an entrepreneur, he devotes all his resources and time developing a new and successful innovation. His main motive is to create a new market for a non-existent product or service. His aim is to never give up and keep on developing new means and methods to get his idea working.

However, for a businessman, he generally does not implement new strategies. He shall always stick to ried and tested ideas and hence that is what will make his business successful. His main motive and aim are to make the business more and more strong so that it grows fast and thus makes it much more profitable for him.

3. Risk range: As pointed earlier, the risk range of an entrepreneur tends to be a bit on the steep side. This is because an entrepreneur introduces a new business idea in the market and is unsure how his product or service will be taken by the end consumers. An entrepreneur is always faced with the fact that if he fails, he shall lose all his money, time and resources. But at the end of the day he shall learn from his failure to motivate him not to give up.

On the other hand, for a businessman, the range of risk is comparatively low. This is because he enters a market where he already knows his competition and is aware of the strategies that he shall be implementing in order to sustain in the market. He need not develop new strategies in order to gain the advantage in the market. However, the only drawback that a businessman faces is the fact that he needs to beat a lot of competitors before gaining his position as a market leader.

4. Attitude with employees and customers: On a general basis, it is noticed that an entrepreneur has a very friendly and compatible nature that allows him to gel up with companions who he treats as his own, rather than treating them as work machines. He is more geared towards the development of his management more than anything else.

But for a businessman, having a bossy and a managerial nature is no big thing. This has mostly to do with the fact that a businessman tends to run after profit a business growth rather than organizational development. Most of this is due to the reason that a businessman makes it a point to appoint or employ people who are already the best in their organizational fields.

5. Work station: For an entrepreneur, his workplace is not confined. This is all due to his friendly nature and his over-whelming capacity to share his creative ideas with his employees. An entrepreneur also has the ability to change his place as per the needs of the organization for the future benefit of the company.

But, on the other hand, a businessman tends to work in a large area where he is able to organize different departments according to the needs of the workers. He teams up all the workers of a particular skill-set in to one place so as to increase team-work relationship. Since the main aim of a businessman is to grow towards the profitability of the organization, he needs a fixed location to be able to concentrate on the task he tends to do, thus avoiding distractions.

6. Expertise: For an entrepreneur, he is always ready to take risks because he knows that, if he is to fail, he can find out solutions for the failure and can hence overcome those to work again.

But in the case of a businessman, he uses his past expertise and experience in the field to be able to avoid losses. In case he does face a loss, it takes him a considerable amount of time to overcome the same as he was not ready to face the same through his years of experience.

7. Adaptability: An entrepreneur is very well versed with the changing business environment and can easily adapt to major changes that he might need to take during the course of his business operations. This helps him overcome any hinderances.

On the other hand, a businessman generally follows traditional business practices and sometimes loses track I his course of operations when he faces hurdles and difficulties in adapting new techniques for development

With that I hope I could clarify the differences between a businessman and an entrepreneur to you. Thank you and have a nice day.