MclendonEchols213
Aus Salespoint
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are more often than not interchangeably used. I too have been guilty of using one or the another at times. However, I feel that there is 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 other hand 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 business.
Entrepreneur have been in the company of making something new The reason for business is to recycle the products. Hence business is more like trading. By trading I mean purchasing goods in one place and selling in the other. It may also involve manufacturing at some step but the fundamental principal continues to be same. Entrepreneurs create something new. They identify an issue and work to create innovative solutions which help reduce and sometimes eliminate problems. Even when they do trading, they'll apply innovative methods to it. Allow me to provide you with an example. If an who owns retail chain is adding internet sales as one of his channel, he is just being a businessman looking for new ways of getting good business. However if he goes an creates a cutting-edge product that never existed before, he is becoming an entrepreneur. Here, he has taken the risk upon himself. Entrepreneur's "Business" is exclusive An entrepreneur won't operate 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 new software), innovative marketing strategies( viral marketing) etc. He side steps the marketplace that's too competitive and works inside a niche area. Entrepreneur puts their own money first Since individuals are not convinced of his ideas, entrepreneur has to put his cash on the line first. He has to show that a market exists for the products he's creating. Then only he can get external finance. This is as opposed to a normal business, where it's known that market exists and hence investors are more willing 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. A successful entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns on the capital it invests. The surety of making 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. A business owner 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 more or less regular sales and is less uncertain than an entrepreneurial venture Entrepreneurs share businesses with team Entrepreneurs build on vision plus they cannot do it alone. So a business owner constantly needs to remind his team and himself about what they're creating and why it'll work. An Entrepreneur has to 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 workers are same through the life time from the business Entrepreneurs share the success using the team Entrepreneurs do not have much cash to offer. Hence they offer equity for their employees. When the venture is successful everyone that has a shares becomes rich. Among the prime example is Infosys technologies in Bangalore. It's created so many millionaires simply by distributing equities towards the founders and employees from the company. A business on the other hand is less available to sharing equity with employees and would pay higher salaries to pay for it.
I nowhere state that businesses can't be entrepreneurial or the other way around but that there is 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 help to eliminate the uncertainty when you are more like a company.
