The word ‘entrepreneur’ has been thrown around a lot lately. It is a word that can refer to any person who starts a business, but it doesn’t always mean the same thing.
This article will explore what an entrepreneur is, and how they compare to a businessman in different businesses. If you’re considering starting your own business, read on!
In entrepreneurship, individuals are largely responsible for the success or failure of the company from idea conception through product development and commercialization.
However, if a business is successful, the team of people who make up that company also become entrepreneurs – they are active in every aspects of their company.
At the core of any company is the system that enables this. It’s not just a hierarchy where one person is responsible for all decisions, but rather an organization that can work together to achieve its goals.
Entrepreneurs are concerned with what the system does to speed up and improve business results.
Businessmen, on the other hand, are generally not concerned with improving the system.
Rather, their main concern is to generate profits for their company. However this may be done – through innovation, efficiency or otherwise.
Entrepreneurs are often interested in starting businesses that are both financially and socially beneficial to society. Businessmen are more interested in solely making money (although they still may do something beneficial or socially responsible).
An entrepreneur is one who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. If they fail, they are responsible for all of its debts because they are personally liable for any company debt. They do not typically have anyone to turn to in an emergency.
Businessmen, on the other hand, only have liability for their own actions – typically the CEO or CFO. If the company fails, its shareholders ultimately suffer the losses in a bankruptcy proceeding.
Entrepreneurs are often technical and often have an excellent grasp of finance. Conversely, business men can be educated in many areas – but they generally do not have the technical expertise to understand their products and the markets in which they operate.
The difference between entrepreneurship and businessman are not necessarily mutually exclusive. They can work together, depending on the type of business being run. For example, a corporation may have an entrepreneur for the research and development department, but a businessman for the marketing department.
There is no set rule that says one must be ‘this’ or ‘that’, however. An entrepreneur can also be a businessman and vice versa. For example, many entrepreneurs make their money in business as a businessman. They might own other businesses as well. So the difference between each of these groups is more to do with their roles than their titles.
Entrepreneurs tend to be more active in the practicalities and daily management of a business, whereas businessmen tend to be more focused on monetary profits.
To be an entrepreneur, you need to have a passion for your idea or product. It is essential that you believe in its success and are willing to take a risk on it. Once you commit yourself, you need to ensure that your business has all the necessary elements to make it successful – including the right staff, adequate funding and much more.
