Posted by Admin
| 1 year ago | Filed Under Entrepreneurship
Many people often confuse the word entrepreneur with business owner, so it is common to see a woman who sells soft drinks or a man who sells spare parts refer to themselves as entrepreneurs. Quite a number of people do not realise the difference between these two terms and often interchangeably used them together.
Business people and entrepreneurs have many similarities. They provide jobs for the unemployed, give solutions to the consumers, and help in developing the national economy. However, they are not the same kind of people.
Who then is an entrepreneur?
An entrepreneur according to Wikipedia is an individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. This simply means that an entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.
On the other hand, according to businessdictionary.com, a business owner is an individual or entity who owns a business entity in an attempt to profit from the successful operations of the company. He generally has decision making abilities and first rights to profit.
From the definitions above, it is safe to conclude that a businessman walks on the defined path, but an entrepreneur believes in making his own path, which becomes a guideline for other businessmen.
Nevertheless we have compiled six major differences which set an entrepreneur apart from a business owner.
- As the businessman, follows the footsteps of other businessmen, the possibility of failure is very less which is just opposite in case of the entrepreneur.
- The businessman faces extreme competition because he dwells on existing business for his mode of business operations. Remember that a business owner is not the originator of the business idea; therefore he is bound to compete with others who are already in the business which is not in the case of an entrepreneur.
- Most businessmen are in business for profit, livelihood, for reaching their financial goals, and for becoming their own boss. While an entrepreneur is focused on changing the world with a primary focus to making a difference in the world and adding value.
- John Haver in his article said that “a business owner is an employer and a manager. He hires employees and workers to help his business grow. An entrepreneur is a friend and a leader. He finds peers and PEOPLE, whom he will never treat as machines. He invites them to help them grow.”
- A business owner usually sees customers as his source of sales and revenues. For him, customers are the lifeblood of his business. An entrepreneur sees customers as his source of duty and fulfilment. For him, customers are his own life blood.
- A businessman sees the world as an opportunity. He sees it as an opportunity to make a living. He also sees it as an opportunity help the people living on it. An entrepreneur sees the world as a duty rather than an opportunity.
- Finally, an entrepreneur is more of a calculated Risk taker and is willing to take more risks for success than a business owner who is just satisfied with the system and his guaranteed turnover.