Difference Between Entrepreneur And Businessman

Are you a business owner? If yes, you might have often been labelled into different categories of business person- either a businessman or an entrepreneur. Did this invoke a curiosity as to what truly sets the two apart? At first glance, they may seem similar, both setting on journeys to create and grow businesses. However, a deeper look reveals fundamental differences in their goals, methods, and approaches to risk. Understanding these distinctions can illuminate not just the exact roles but also their impact on the economy and society as a whole. Whether you're an aspiring entrepreneur or simply curious about the business world, exploring the two different pools will help you understand the roles better.

What do you mean by an Entrepreneur?

An entrepreneur is a visionary who develops a product or service that can improve the economy and benefit society. They identify opportunities, gather resources, and innovate to meet market needs. Entrepreneurs are problem-solvers who aim to bring new solutions to life.

Starting a business as an entrepreneur often involves working with investors and partners. It’s a risky venture with no guaranteed returns, but the rewards can be great, especially when there’s little competition in a niche market. Entrepreneurship is as much about overcoming challenges as it is about reaping the rewards.

Apart from the term ‘businessman’, another term used interchangeably with an entrepreneur is ‘intrapreneur. The main difference between entrepreneur and intrapreneur is where they work. As an entrepreneur, you run your own business, taking on financial risks to build something new. In contrast, as an intrapreneur, you innovate and lead new projects within a company, using its resources without facing the same financial risks.

Types of Entrepreneurs

• Innovators – These entrepreneurs focus on creating something new and unique. They often need a large amount of capital to get started but stand out in the market with their fresh ideas.
• Hustlers – Hustlers are driven by the vision of creating a product rather than the desire to make money. They usually start with less capital and less original ideas but make up for it with determination and hard work. Their journey to success often takes longer.
• Buyers – Buyers have the capital to evaluate and purchase a business, which they then run independently. Their strength lies in identifying potential and investing in businesses that can succeed under their leadership.
• Imitators – Imitators take existing ideas, often those that haven’t worked before, and improve on them. They thrive by refining others’ concepts and making them successful.

Who is a businessman?

A businessman runs a business based on an existing idea, often in areas with high demand or potential for profit. They focus on industrial or commercial activities without introducing anything new. Since the business concept is already established, the risk is usually lower, and the chances of failure are minimal. However, there’s tough competition because many others offer similar products or services. Businessmen prioritize their customers, treating them as the backbone of their business and using intellectual resources to meet their needs. Examples of businessmen include founders of saree shops, furniture stores, grocery stores, and garment shops.

Types of Businessman

• Sole Proprietor: A sole proprietor owns the entire business without any partners. They have full control over decisions and profits.
• General Partner: In a general partnership, more than two individuals run the business together. Each partner is responsible for the actions of the others.
• Small Business Owner: A small business owner focuses on a specific audience and runs the business independently to meet the needs of their target market.

Difference Between Entrepreneur and Businessman:

Similarities Shared by Entrepreneurs and Businessmen:

Though the two terms differ in many aspects, their role in the economy and a few of their core characteristics overlap for the two. The similarities are-

• Work Ethics and Long Hours

Both entrepreneurs and business owners have a strong work ethic. They put in long hours to chase their goals. This dedication drives their ventures forward, showing their commitment to hard work.

• Sales and Self-Promotion Skills

Another common trait is their talent for sales and self-promotion. Both know how to sell their products, services, or ideas effectively. They communicate the value of what they offer, attracting customers, investors, and stakeholders. Their ability to promote themselves helps build their brand, establish credibility, and grow their network.

• Starting as Small Ventures

Both start their journeys with small ventures. They often begin on a humble scale, learning the ropes of their industry. This initial phase helps them understand market dynamics and adapt to changes. These early experiences provide valuable insights that contribute to their growth and success in the long run.

Bottomline

Entrepreneurs push boundaries, seeking to transform ideas into reality and often reshaping industries in the process. On the other hand, businessmen capitalize on established concepts, ensuring that they meet market demands effectively and sustainably. Understanding where you fit within this spectrum can help clarify your goals and strategies. Whether you're inspired to launch the next big idea or prefer the stability of a traditional business, both paths are vital to driving economic growth and providing value to society. 

FAQs

Q1. What are some examples of entrepreneurs in India?

Ans. Some of the entrepreneurs from India are Ritesh Agarwal (OYO rooms), Falguni Nayar (Nykaa), Bhavish Aggarwal (Ola Cabs), and Shradha Sharma (YourStory Media).

Q2. What is the difference between a businessman and a manager?

Ans. The key difference between a businessman and a manager is simple. A businessman starts a business, while a manager runs an existing one.

Q3. Who are social entrepreneurs?

Ans. A social entrepreneur is someone who applies business principles to create a venture that addresses social or environmental issues while being financially sustainable. They are passionate about driving social change and are willing to take risks to make a positive impact on society.