GelinasCaruthers317
Aus Salespoint
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are most of the time interchangeably used. I too happen to be guilty of using one or the another sometimes. However, Personally i think that there's a factor between your way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is 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 a business owner.Let's explore some of the points where entrepreneurship differs from running the company.
Entrepreneur are in the company of making something new The reason for clients are to recycle these products. Hence clients are a lot more like trading. By trading I mean purchasing goods in one place and selling at the other. This may also involve manufacturing at some step but the fundamental principal remains the same. Entrepreneurs create new things. They identify a problem and work to create innovative solutions that help reduce and sometimes eliminate problems. Even when they are doing trading, they'll apply innovative methods to it. Let me give you an example. If an who owns retail chain is adding internet sales as one of his channel, he is just being a businessman trying to find new ways of getting more business. However if he goes an creates a cutting-edge product that never existed before, he's being an entrepreneur. Here, he has taken the danger upon himself. Entrepreneur's "Business" is unique An entrepreneur will not work in places that there is already an audience. He'll use his scarce money to understand more about new. He will for instance, go for new channels of sales( internet, m-commerce etc), innovative products ( a brand 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 people are not convinced of his ideas, entrepreneur has to put his money on the road first. He needs to show that a market exists for these products he is creating. Then only he can get external finance. This really is in contrast to a normal business, where it is known that market exists and hence investors are more prepared to purchase such businesses Entrepreneurs dealing with new innovative products convey more breakout chances If the risks are high, so might be the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk can get lower returns around the capital it invests. The surety of making money in regular business is in addition to 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 almost daily about success of his product, price of developing the product, customer's adoption, team motivation and anything else. There is uncertainty and un-evenness of sales. A regular business however has pretty much regular sales and it 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 must remind his team and himself by what they are creating and why it'll work. An Entrepreneur needs to always look for new ways to motivate the workers. The roles of employees change frequently in line with the perceived business conditions In business however, the roles of employees are same throughout the life time from the business Entrepreneurs share the success with the team Entrepreneurs do not have much cash to offer. Hence they offer equity for their employees. Once the venture is successful everyone who has a shares becomes rich. One of the prime example is Infosys technologies in Bangalore. It's created so many millionaires just by distributing equities towards the founders and employees from the company. A business however is less open to sharing equity with employees and would pay higher salaries to compensate for it.
I nowhere say that businesses cannot be entrepreneurial or vice versa but that there's a significant differences between the way a entrepreneurial venture and a business works. A business however may become entrepreneur by doing something innovative while entrepreneur can reduce the uncertainty by being more like a business.
