Understanding the Differences Between an Entrepreneur and a Businessman

We all have heard of the terms entrepreneur and businessman. Ever wondered whether there is any difference between an Entrepreneur and a Businessman, or are these used interchangeably?

For all those who are confused about the difference between an entrepreneur and a businessman, we have clarified the details for you! 

10 Common Differences Between an Entrepreneur and a Businessman

Businessmen and entrepreneurs are both involved in business, but they have different approaches to handling and doing things.

Entrepreneurs are the ones who create new ideas and take risks to start something new. Meanwhile, businessmen focus on managing and running existing businesses.

Understanding this difference between an entrepreneur and a businessman is important, especially if you’re planning to launch a new business or join someone to help them with their existing business! 

For those finding out the distinctions between the two, connecting with an expert business coach like Rahul Malodia can help you grab all the minor details, along with experienced expertise that will assist you forever in establishing a long-term profitable business plan. Explore the details about Rahul Malodia’s Vyapaari to CEO Program to know more! 

And for those who want to grasp details about the basic difference between an entrepreneur and a businessman, details in the sections of this blog will assist you! Scroll down to know more! 

Who is an Entrepreneur?

An entrepreneur is an individual who begins with a new idea with his new projects, aiming to bring innovations to the world.

Considered creative and innovative, entrepreneurs are known to handle the unknown risks and uncertainties of running a business. Since they work on a new idea, a business launched by the entrepreneur is called a startup. 

These individuals are known for their innovation. They gather resources and introduce new ideas that bring significant changes.

They’re vital to the business and manage various aspects like employees, resources, and finances. As time passes, an entrepreneur might evolve into a businessman.

Famous entrepreneurs include- 

• Mark Zuckerberg (co-founder of Facebook), 
• Bill Gates (founder of Microsoft), Steve Jobs (co-founder of Apple), 
• Larry Page (co-founder of Google), and more. 

Who is a Businessman?

A businessman is someone who manages or initiates a business with an established or commonly used business idea. They typically opt for ventures that promise high demand or significant profitability.

These businesses often encounter tough competition as many other companies already operate with similar ideas in the market. Yet, the risk is relatively low as these concepts have been tried and tested, reducing the chances of failure.

The primary goal of a businessman is to generate revenue by utilizing intellectual and financial resources efficiently. They prioritize customer satisfaction as a key business principle.

Examples of businessmen include owners of businesses like saree shops, furniture stores, grocery outlets, garment shops, and similar enterprises.

Most Common Differences Between an Entrepreneur and a Businessman 

1. Originality of Idea:

• Businessman: Works with existing business ideas or franchises.
• Entrepreneur: Innovates and creates new products or concepts.

2. Purpose of Doing:

• Businessman: Often profit-oriented, focusing on financial goals.
• Entrepreneur: Aim to make a difference and pursue a passion.

3. Degree of Risks Taken:

• Businessman: Takes calculated risks to avoid bankruptcy.
• Entrepreneur: Takes higher risks, driven by passion and innovation.

4. Treatment of Employees:

• Businessman: Acts as an employer and manager.
• Entrepreneur: Engages with employees as peers and invites growth.

5. Treatment of Customers:

• Businessman: Sees customers as sources of sales and revenues.
• Entrepreneur: Considers customers as sources of duty and fulfilment.

6. View of Competition:

• Businessman: Tries to beat competitors and win the competition.
• Entrepreneur: Strives to surpass personal limits and self-improvement.

7. Perspective on Money:

• Businessman: Concerned about avoiding losses and relies on economic stability.
• Entrepreneur: Often less worried about money, willing to start anew.

8. Approach to Time Management:

• Businessman: Values promptness, efficiency, and adherence to schedules.
• Entrepreneur: Takes time to innovate and perfect their product.

9. Perception of the World:

• Businessman: Sees the world as an opportunity for a living and to aid others.
• Entrepreneur: Views the world as a duty to make a meaningful change.

10. Definition of Success:

• Businessman: Defines success in business achievements and stakeholder satisfaction.
• Entrepreneur: Focuses on doing the job and lets history define their accomplishments.

Conclusion:

Evaluating the differences between an entrepreneur and a businessman is like understanding two different mindsets.

Where entrepreneurs are tagged as creative innovators, who are driven by fresh ideas and have a passion for bringing new change, businessmen are known to follow established paths and are more inclined to profits, and existing business models. 

Their differences extend to how they handle risks, interact with employees and customers, and perceive competition, money, time, and success.

Both roles offer unique perspectives and contribute differently to the business landscape.

For guidance in navigating these distinct paths, consider the expertise of Rahul Malodia, a seasoned business coach.

His mentorship helps individuals comprehend these roles better, offering invaluable insights into entrepreneurship and business approaches.

Connect with the experts now and explore their Vyappari to CEO Program to know more! 

FAQ’s: Difference Between Entrepreneur and Businessman

Q1. Is Mukesh Ambani a businessman or an entrepreneur?

Since Mukesh Ambani is leading and managing Reliance Industries, which was launched by his father, Dirubhai Ambani, he is a businessman for this role. But, he is also addressed as an entrepreneur for launching a new venture with a different mindset, which is Jio.

Q2. Who is a bigger entrepreneur or businessman?

Comparing who is “bigger” between an entrepreneur and a businessman depends on various factors such as the scale of their ventures, impact, innovation, and success. Both play vital roles in different ways within the business world.

Q3. Is every entrepreneur a CEO?

Not necessarily. Some entrepreneurs might turn out to be CEOs of their companies, but not all hold the same title. 

Q4. Who is India’s No. 1 entrepreneur?

Ratan Tata, Azim Premji, and Narayana Murthy are ranked as some of the most notable entrepreneurs in India.

Q5. Why is an entrepreneur better than a businessman?

The comparison of an entrepreneur being “better” than a businessman is subjective. Entrepreneurs and businessmen have different approaches and contributions to the business world. Entrepreneurs are known for innovation and introducing groundbreaking ideas, while businessmen might focus on established models and profitability.

Q6. Who is the father of entrepreneurship?

The title “father of entrepreneurship” is attributed to different individuals. Joseph Schumpeter, an economist, is often referred to as one of the early thinkers who highlighted the role of innovation and entrepreneurship in economic development. Other notable figures in entrepreneurship history include Richard Cantillon, considered one of the early economic thinkers on entrepreneurship.