Difference Between an Entrepreneur and Businessman
Entrepreneur and Businessman are terms that are often used interchangeably. Though both of these terms seem to have the same meaning it indicates different aspects. This article discusses some significant differences between these two terms, an Entrepreneur and a businessman. Here we discuss the distinctions in mindset, approach, risk-taking ability, and innovation.
Who is a Businessman?
A businessman is someone who does business with already existing strategies and ideas. They implement proven methods in a business to generate profit and success. A businessman focuses on expanding the business with established tactics rather than following a creative idea.
Key characteristics of a businessman:
Follows proven business strategies
Takes only required risks
Works for existing markets
Leadership skills
Who is an Entrepreneur?
An entrepreneur introduces an innovative idea, develops a suitable business strategy, and takes the required risks to establish a new business. They are more motivated by creativity and original ideas than working with already existing business strategies.
Key qualities of an Entrepreneur:
Innovative and creative
Takes high risks
Creates new market opportunities
Key Differences Between a Businessman and an Entrepreneur
There are a few major areas where the entrepreneur and businessman difference exists. differ highly from each other. Both play an important role in the economy, but their goals and approaches vary significantly. Below we discuss the major differences between these two.
1. Innovation and Originality
The most evident businessman and entrepreneur difference is innovation.
A businessman usually works with familiar ideas and already existing products, services, or business models. Their primary focus is expanding the business in the existing market which earns maximum profits. They have to thrive in a market with high competition as there are many similar business models available on the market.
An entrepreneur on the other hand works for new ideas for a new venture that is called a start-up. They highly focus on problem-solving by understanding the gaps in the market and creating innovative solutions.
2. Risk-Taking Ability
Risk-taking is an integral part of business but the level of risks taken by a Businessman and an Entrepreneur is highly different. This is another area where the entrepreneur and businessman difference is present.
A businessman is only willing to take calculated risks to reduce any potential consequences that could harm the growth of their business. They follow successful business models and work according to standards of the industry.
Taking risks and dealing with the following uncertainty is a huge aspect of entrepreneurship. They take up new ideas and execute, which could succeed or fail. This risk-taking ability differentiates an entrepreneur from a businessman.
3. Decision-Making Style
The decision making style of both businessmen and entrepreneurs is based on different things. Since their approach varies, they prioritise different factors while making a decision. Hence,this contributes to the difference between businessman and entrepreneur.
The decision making of a business man is highly based on previous experience, market research, and budget.
Instead the entrepreneur bases their decision on creativity, intuition and innovation.
4. Adaptability and Growth
The ability to adapt also creates the difference between businessman and entrepreneur. This can directly influence growth capacity.
A businessman mainly focuses on how to grow their business and earn profit with fewer uncertainties and disruptions.
However, an entrepreneur is flexible to change and willingly adapts to new technologies and trends.
5.Market Approach
Their approach to the market leads to the difference between businessman and entrepreneur. A businessman goes for the traditional approach while an entrepreneur challenges the conventions.
Businessmen are market players and strategically incorporate proven business models to achieve success.
Entrepreneurs are market creators by identifying gaps and introducing innovations.
Conclusion
While a businessman and entrepreneur are terms that are similar, but, in their approach to business, goals and mindsets set them apart. Understanding these businessman and entrepreneur differences can enable an individual to choose whether to engage in a traditional business model or introduce innovative ideas to the market.