Difference between Entrepreneur and businessman (Explained in details)

Difference between Entrepreneur and businessman (Explained in details)

The biggest difference between an entrepreneur and a businessman is lies in their mindset. Often people confused these terms, which is normal because these two terms are very closely related to each other and there are lots of similarities between them.

Therefore, in this article I have explained 9 things that separate an entrepreneur from a businessman.

But before understanding the differences between them we have to clarify who they are.

So, let’s dive in.

Who is an Entrepreneur?

Entrepreneur

An Entrepreneur is someone who takes the initiative by bearing all the risk involves in starting a new venture, running it, and make it a successful business.

Entrepreneurs are the person who generates ideas and creates a new path.

In most cases, it all starts with a commitment to solve a particular problem and make this world a better place to live.

Changing the world and making a difference is what drives them.

Who is a Businessman?

A businessman is someone who involves in an enterprise performing many different kinds of activities to generate revenue by using various resources.

The primary goal of a businessman is to make a profit without taking much risk. That’s why most of the businessman build their businesses around ideas which are tried and tested.

A businessman could be anyone, a founder or someone who runs the business. Even later on many entrepreneurs become a businessman as well.

Hope you get an idea of an entrepreneur and a businessman. Now we are ready to move ahead to know the differences.

Differences between Entrepreneur and Businessman

Thinking

The key difference between an entrepreneur and a businessman lies in their way of thinking.

An entrepreneur is known for his boundary-less thinking.

Money is a by-product for an entrepreneur. What drives him is the willingness to bring a change in the life of people.

Entrepreneurs always think of moving to the next level until they become the leader of their industry.

For entrepreneurs, the sky is the limit.

On the other hand, for a businessman it all starts with money and ends with money. Profit is their biggest motivation. They aim to occupy just enough shares in their industry and play on it.

Businessman starts their venture with a mental limitation of doing enough and getting enough. This is why they remain a market player and never become a market leader in their chosen industry.

Idea

An entrepreneur is someone who generates an idea. Entrepreneurs don’t do business to have a business, but they do it to solve some kinds of problems.

Innovation and creativity is a major part of their characteristics. Often it starts with the urge to bring some value in the society or make something more effective and efficient.

They are the maker of their path.

On the other hand, a businessman often looks for business opportunities which can earn him more profits with minimum risk.

They never invest their time and money in building something new. They aim to find a hot and trending industry and invest their money into it to make it big.

To put it in one line, an entrepreneur is the creator of an idea and a businessman is the follower of that idea.

Risk Factor

As the entrepreneur works on his new idea, there is a great margin of risk.

When you are putting everything on the stake (time, money, energy, etc.), it’s a big setback if you fail. If succeed, the reward is amazing.

You can become the leader of your industry as there is no other player. You will get the first-mover advantage.

In the case of a businessman, the risk is quite low as he always entered in a well-settled industry.

A businessman is not a person who innovates things, but someone who always invests in something which is booming.

Now with this approach, the probability of earning profit is quite high which he is aiming for. But the biggest inconvenience is that he have to face a lot of competition.

Competition

As we know there is a big risk at executing a new idea, but as said, “There is an opportunity lies in every adversity.”

The biggest advantage or opportunity for an entrepreneur is that there are no one or very few people working on the same idea.

So the rate of competition is very low and also the pressure of beating-up by others.

On the other side, businessman deals with high competition as he enters an already existing industry.

It’s very difficult for him to gain a competitive advantage and have to settle with just enough reward.

Purpose

Entrepreneurs are purpose-driven people, mission-driven people. There is a sense of meaning in their every activity.

They follow their passion and do whatever it takes to make their vision a reality.

As opposed to, a businessman’s only purpose is to build their empire and make a profit for themselves and their shareholders.

Money is the center point of their every decision.

Worldview

Entrepreneurs see the world with the attitude of possibility. They believe that the world is full of possibilities, the possibility to make it even better.

They view the world with an optimistic mindset.

On the other hand, a businessman also sees the world with an optimistic mindset.

But as their purpose differs so as their view towards the world.

A businessman believes that the world is full of opportunities to build businesses and make money.

Attitude Towards People

Entrepreneurs are people-oriented. For them, the customer is their priority.

Besides that, entrepreneurs treat their employees with great love and enthusiasm. They feel people are their ultimate resources.

Entrepreneurs are leaders who bring people together on a journey to bring a positive change in society. It’s like a win-win for everyone.

But for a businessman, profit is their priority.

In terms of employees, businessman prefers professional with specific expertise. For them, it’s like a boss-employee relationship.

Market Position

Often entrepreneurs are the first mover of the industry. In other words, they are the creator of the industry.

So if they succeed, they become the leader of the particular industry.

On the other side, a businessman enters an industry after seeing its performance.

Now it decreases the risk of losing resources but it’s become very difficult for them to be the market leader ever.

They remain as a market player.

Adaptability

The world is changing rapidly. We are going to witness the changes in the next 5 years which we have not seen in the last 100 years.

And with the internet, social media, and AI, it’s becoming more difficult for people to adapt.

Entrepreneurs are known for their ability to adapt. They work with an unconventional method which helps them to adapt to changes fast.

But businessman works with a conventional method which becomes a barrier for them to adapt to change.

At a glance

Basis of ComparisonEntrepreneurBusinessman
ThinkingBoundaryless ThinkingLimited Thinking
IdeaUniqueCopied
Risk FactorHigh RiskLow Risk
CompetitionHigh CompetitionLow Competition
PurposeTo Change the worldTo make profit
WorldviewFull of possibilityFull of opportunity
Attitude towards peoplePeople firstSee people as resource to earn profit
Market PositionMarket LeaderMarket Player
AdaptabilityAdapt FirstUnadaptable
Difference between entrepreneur and businessman

Conclusion:

Hope it helps you clarify your confusions regarding the differences between entrepreneur and businessman.

Now I want to hear from you.

What do you feel after reading this, are you an entrepreneur or a businessman?

Did I miss something?

Let me know by leaving a quick comment.

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