BeatrizBrothers795
Aus Salespoint
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are more often than not interchangeably used. I too happen to be guilty of using one or even the another sometimes. However, I feel that there's a significant difference between the way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is all about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a well known path and takes lesser risk than an entrepreneur.Let's explore some of the points where entrepreneurship differs from running the company.
Entrepreneur have been in the business of creating new things The purpose of business is to recycle the products. Hence clients are a lot more like trading. By trading I mean purchasing goods from one place and selling at the other. This may also involve manufacturing at some step however the fundamental principal continues to be same. Entrepreneurs create new things. They identify an issue and try to create innovative solutions which help reduce or eliminate problems. Even if they are doing trading, they'll apply innovative methods to it. Let me provide you with a good example. If the who owns retail chain is adding internet sales as one of his channel, he's just as being a businessman trying to find new methods for getting more business. However if he goes an creates a cutting-edge product that never existed before, he is being an entrepreneur. Here, he has taken the risk upon himself. Entrepreneur's "Business" is exclusive An entrepreneur won't operate in areas where there is already a crowd. He will use his scarce money to understand more about new. He'll for instance, go for new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing strategies( viral marketing) etc. He side steps the market that is too competitive and works in a niche area. Entrepreneur puts their own money first Since individuals are not convinced of his ideas, entrepreneur needs to put his money on the road first. He has to reveal that a market are available for the products he's creating. Then only he is able to get external finance. This is as opposed to a normal business, where it is known that market exists and hence investors are more prepared to invest in such businesses Entrepreneurs dealing with new innovative products have more breakout chances If the potential risks are high, so are the rewards. An effective entrepreneur reaps more monetary benefits than his business counterpart. A normal business with lower risk can get lower returns around the capital it invests. The surety of creating profit regular business is more than that of entrepreneurship though. Entrepreneurs experience more uncertainty than regular businesses Entrepreneurship is certainly more riskier and uncertain than conducting a regular business. An entrepreneur faces the question just about every day about success of his product, price of developing the merchandise, customer's adoption, team motivation and everything else. There's uncertainty and un-evenness of sales. A normal business however has pretty much regular sales and is less uncertain than an entrepreneurial venture Entrepreneurs share business ideas with team Entrepreneurs develop vision plus they canrrrt do it alone. So an entrepreneur constantly needs to remind his team and himself about what they're creating and why it'll work. An Entrepreneur has to always look for brand new ways to motivate the employees. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same throughout the lifetime of the business Entrepreneurs share the success using the team Entrepreneurs don't have much cash to provide. So they offer equity to their employees. Once the venture works everyone who has a shares becomes rich. Among the prime example is Infosys technologies in Bangalore. It has created so many millionaires just by distributing equities towards the founders and employees of the company. A company on the other hand is less open to sharing equity with employees and would pay higher salaries to compensate for it.
I nowhere say that businesses can't be entrepreneurial or the other way around but that there's a significant differences between your way a entrepreneurial venture and a business works. A company however may become entrepreneur by doing something innovative while entrepreneur can reduce the uncertainty by being more like a company.
