Many of the individuals are living with the wrong information that the businessman and entrepreneurs are the same because both of them have numerous resemblances. But no, it is not like that actual businessman and entrepreneur both differ from each other.
The businessman is the owner of a specific business who doesn’t create any new idea of business but follows the old trends of the occupation that is running from the ages. They only govern the business which they occupy. The main motive of a businessman is to earn the maximum profit. The face lot of competition in the market. But don’t create any new ideas of business.
On the other, an entrepreneur is a person who creates business. He is a man of high intelligence and creativity. He uses his mind in inventing a new product and launch it in a market. He has to face many risks regarding the new product.
The fundamental discrepancy between the businessman and entrepreneur is:
• An entrepreneur is a person who is a creative person who commences his own start-up company with a unique idea. And he doesn’t follow the traditional trends of the business.
• A businessman is a person who operates his business on the ancestral trends that are following for several years. He doesn’t use any original idea or concept.
There is a massive difference between both of them. Here you will find the difference between a businessman and an entrepreneur.
Below is the list of many elements that will clear the distinction between entrepreneurs and businessmen.
Based on the invention of the idea:
One of the primary differences between the businessman and entrepreneur is the invention of an idea. A businessman does business based on a conventional business idea. He does business such as retailing and franchising. The main intention of a businessman is to acquire wealth. Whereas the entrepreneur is a producer of a new product, he is creative as well as innovative. He makes his new strategies of working instead of working on older concepts.
Based on profit:
Earning profit is different for both businessmen and entrepreneurs. Earning profit is the main aim of a businessman. A business needs a big investment to operate it.
Although the entrepreneur also works for earning money he doesn’t focus on just earning revenue.
Business is only profit acquainted, it deals with the buying product at a lower cost and sells it to the customers at a high price to maximize the rate of profit. On the contrary an entrepreneur is a person who pays all his attention in originality. Rather than profit, he gives more importance to his consumers, laborers, and the community. The businessman is goal-oriented with the main aim of earning profit while the entrepreneur is customer-oriented who works to satisfy the consumers.
Role of Competition:
Where businessman faces a lot of competition in the market, entrepreneurs don’t have to face the problem of competition. As they are the start-up of a company. An entrepreneur involves in the business of a product in which he invented it. While a businessman runs a business which includes selling products which are already selling by others. As businessman does a business which already exists in the market thus he has to face extreme competition in the market. It is a difficult task to acquire a great position in the already surviving market.
Possibility of failure:
It is also the main element that creates a huge difference between an entrepreneur and a businessman. Because the businessman follows the path of operating a business which already created by other people, so it has a lesser possibility to get failure in running a business. The businessman knows the ups and downs and the causes of it because they follow the formal trend of a business so they make fewer mistakes in operating business and make more profit and achieve success in business. Whereas entrepreneurs involve a high risk of failure. The main reason for the risk is they create a new product and doesn’t follow an established trend of business. They don’t have an idea about whether the invented product will rise in the future or fall. As it is depended on the customers.
Market position:
The difference between entrepreneurs and businessmen can be understood with the market position of both of them. Entrepreneurs are the market leader, as they invented a new product in the market. On the contrary, a businessman is a market player, as they can take advantages to run their business efficiently by winding their firm with an established enterprise.
Based on bearing risks:
People think that because an entrepreneur is a producer of a new product thus there is no similar product in the market which can create competition for it. But that is not true at all entrepreneur has to face high risk and has to bear it alone. As he is launching a new product that is new to the consumers so he takes the risk of the product that whether he gets success or failure in his efforts. An entrepreneur decides the company based on intention rather estimated or calculated or valid information that is the big reason for the high involvement of risk.
On the other hand, the businessman is following other’s paths which are already established by other successful businessmen. There is a competition in business but there is a lesser chance of risk. That is also because of certain mistakes.
So, we can say that an entrepreneur is a person who is actually like a businessman but involves two factors first is high risk and other is unique ideas. Both businessmen and entrepreneurs are two distinct people who come into the business field with two different motives. One’s basis is to opt for-profit while the other one wants to satisfy customers and serves for social wellbeing. One is doing business considering all the literal and reliable facts and information while the other is doing business with just an estimation. The objective is differing, so there is a massive difference between a businessman and an entrepreneur. Businessman follows the path of others while the entrepreneur creates ways for others.