What is the differences between businessman and entrepreneur?

Finance ManagementBanking & FinanceGrowth & Empowerment

We can say a businessman walks in a defined path and an entrepreneur makes his own path and a businessman can follow the path defined by an entrepreneur. In general many people think that both businessman and entrepreneur have similar or same meaning but they differ in their own way.

Businessman

A businessman is a person who carries out the activities related to industrial and commercial purposes. He runs the existing business and can set up new entrants for existing business in the market. Generally businessmen go for ideas which generally make profit and huge demand in the market.

Businessmen face tough competition in the market because they are doing business based on market demand and profits. The risk factor and chance of failure is low when compared to entrepreneurs. The main objective is to generate revenue by employing highly talented people (including human resources, financial people) and using intellectual resources

Entrepreneur

Unlike businessmen, an entrepreneur carries a unique idea. He built on a unique concept and brought that concept or idea into reality. He is responsible or solo bearer of risk and uncertainties.

Entrepreneur starts a venture called Startup Company which is started in the market at first based on innovation, idea, sometimes business process also. He started the business first so at the early stages there will be less or no competition, after clicking the idea there may be many players but the one who started first remains at next level or untouched.

In terms of economics, an entrepreneur is the one who assembles and mobilizes the factors like land, capital and labor or factors of production. Entrepreneur becomes a businessman in the long run.

Entrepreneur is the one who introduces a new product to the market using his/her creative approach, innovation and by coordinating the resources. Examples of entrepreneurs are Bill Gates, Steve Jobs, Mark Zuckerberg etc.

Differences

The major differences between a businessman and an entrepreneur are as follows −

BusinessmanEntrepreneur
Starts a business with an existing idea/product/service.Starts an enterprise with a new idea.
Market player.Market leader.
Calculative in nature.Intuitive in nature.
Place in existing markets.
Risk factor is less.
New market is created.
Applies conventional methods.Applies unconventional methods.
Holistic approach.Atomistic approach.
Profit oriented.People oriented.
High competition.Low competition.

Conclusion

Businessmen generally focus on competition but an entrepreneur is the one who creates the competition in the market.

raja
Updated on 17-May-2022 13:34:11

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