One can easily mistake a business person for an entrepreneur. At first glance, the two seem to refer to one person. However, as you will discover, most people don’t know what is the difference between a business person and an entrepreneur.
Primarily, a businessman takes a path already engraved by other people, hence has no original ideas. An entrepreneur behaves and thinks in ways that enable him/her to create a new path guided by new and original ideas.
In the future, perhaps an entrepreneur can turn into a business person. However, whereas the businessman becomes a market player, the entrepreneur will assume the role of a market leader.
This implies that a businessperson is guided by existing ideas and dwells more on making money than solving problems. An entrepreneur makes money by solving problems.
- Why You Should Know the Differences Between an Entrepreneur and a Businessperson
- Understanding the Differences Between Businessman and Entrepreneur
- How to Tell If You Are A Businessman or an Entrepreneur
Why You Should Know the Differences Between an Entrepreneur and a Businessperson
Some people find that they assume both the role of an entrepreneur and a businessperson. To get out of this impasse, you must analyze your current position to determine whether you are comfortable as a market player or a market leader.
A businessman is a person that starts a business using old ideas. They go after maximum returns and profits by choosing a business that is already in high demand.
In such a business, there is stiff competition because there are many players in the market carrying the same business idea.
However, chances of success are high because the idea is already tried and tested, eliminating unforeseen risks. Therefore, the chances that the business will fail are limited or controlled.
An entrepreneur carries the big picture. From an entrepreneur’s perspective, new ideas will bring change to how the world conducts business. An entrepreneur is a creative individual that takes risks head-on regardless of the unpredictability of the business.
We refer to new and innovative businesses formed by entrepreneurs as startup businesses. They play an integral part of the business’ operations as they deploy functions such as:
Check out, Top 10 Automobile Business Ideas.
Understanding the Differences Between Businessman and Entrepreneur
Ideas mark the primary differences between an entrepreneur and a businessperson. An entrepreneur has big business ideas that aim to solve an equally big societal problem while making money.
An entrepreneur is the first of the idea. Creating a business from scratch with uniqueness, money, and energy.
On the other hand, a businessperson selects a profitable business concept from an already existing idea. The main challenge is the existing competition because people are aware of the business returns.
However, a businessperson will make a success from the existing idea because of the calculated risks.
Businesspersons are not risk-takers. They prefer the route that absolves them from insolvency by protecting their money. Therefore, a calculated profit and loss margin ensures that they cushion the risks of making money in the process.
Entrepreneurs are all about more passion for their idea than concerns of money and time. Though aware of the risks, they will still stake their business with the mindset that it is a full-proof business concept.
The greater the risks, the higher the rewards for most entrepreneurs. A businessperson calculates profits and loss margins before taking a risk, whereas an entrepreneur will pursue their idea regardless of the risks.
3. Working Style
A businessperson sees the world of opportunities. They are in the business for profit regardless of the joy they derive from it. The aim is to work and improve on income.
Entrepreneurs care more about passion than making money. The world is a duty, and the business idea is to make the world a better place regardless of cost. Entrepreneurs value comfort and passion while businesspersons care about profits.
4. Customer Relations
To a businessperson, customers are the main source of earnings via sales. A businessman needs customers like we need oxygen if they are to make a meaningful income. The more customers, the merrier.
Entrepreneurs value their customers as well, but in the sense of duty than profit. The aim is to make lifetime relations that blossom to better the world than for profit.
Usually, customers see their customers as his source of sales and earnings, for a businessman customer is like oxygen to survive in their business and gain good income.
Entrepreneurs value the companionship and input of their customers. The drive is to make the clients satisfied with his services.
5. Handling Competitors
A businessperson is always looking for ways to milk more profits. The competition presents opportunities to achieve success regardless.
The idea is always to make profits. When they cannot win, businesspersons will enter into collaborations and cooperation to stay afloat.
Entrepreneurs look for options to beat their competitors. They review and observe competitors gain business experience and try doing things differently.
Competitors are a platform for entrepreneurs to do better.
6. Employer to Employee Relations
A businessperson hires and fires employees for the benefit of the business. After employees meet a certain target and they become redundant, they are let go.
Of course, a business person will always compensate employees’ remunerations according to the value of their work for a specific time.
The relationship never grows beyond employer to employee.
An entrepreneur is more relaxed and values the input of his laborer. Entrepreneurs treat employees as friends and leaders. They value their suggestions and encourage work environments that allow the employees to grow their ideas.
7. Money Making Mindset
A businessman has one looming fear. It is to lose their money. Before a businessperson starts a business, they rely on a stable economy. The aim is to work for profit, especially when dealing with financing and retail business ventures.
Entrepreneurs believe more in the pursuit rather than the profits. To achieve regardless of the risks means taking in some losses while venturing into your dreams.
If you don’t venture, you will not gain. An expression that implies nothing greats comes without taking risks. For entrepreneurs, mistakes that lead to losses are learning curves. The unchartered business path is unpredictable, but the rewards insurmountable.
Also, you may like, What must an entrepreneur assume when starting a business?
8. Time Management
A businessperson plan for the time to achieve specific goals. There is no room to work outside the planned schedule.
Businesspeople do not waste time.
Entrepreneurs are all about their imagination. There is no commitment to a schedule because you cannot tell when the genius will strike.
Entrepreneurs operate as artists. The product is a masterpiece derived from imagination. Without the freedom to wander, there cannot be an unbelievable brand or product.
Entrepreneur takes the time they need to work on an idea. Usually, the outcome will awe everyone, justifying the time it takes for success.
9. Understanding the Success
Businesspeople see success as profits and business growth. What matters is what the business is making in terms of money, turnover, and growth. Success also means the people willing to work for them and with them. The people that want to invest more into their business. That is what success is.
Entrepreneurs never feel the urge to describe success. Their work and achievement are their success. When people are talking positively about the ways, your business has helped improve their lives or achieve certain objectives, success.
To entrepreneurs, success is not an individual achievement. It should uplift or solve some problem in society.
Check out, 10 Characteristics of Successful Entrepreneurs.
10. Understanding Opportunity
Business people will never miss an opportunity to make money. Because of this, they are always on the lookout for potential business. They take advantage of seasons to make sales by adapting to the changes. For example, the clothing industry has various outfits for different seasons like summer and winter.
Entrepreneurs assume the challenge of solving societal problems as an opportunity. They coin their idea to solve a problem the society needs and to alleviate how people do business.
For instance, paperless money is a fix for people that want to make purchases without carrying the risk of cash on them. On the one hand, you keep your money safe while you still enjoy spending your money.
Also, check out, Small Business Vs. Entrepreneurship.
How to Tell If You Are A Businessman or an Entrepreneur
Let us check out a few points on how to tell if you are a businessman or an entrepreneur.
1# Attitude and objective
Attitude separates an entrepreneur from a businessperson. An entrepreneur develops a project idea and focuses all his attention on it. It needs time and devotion, and that is why entrepreneurs are always enthusiastic about their ideas.
The drive comes from their conviction that the idea will benefit many people. It involves using creativity to solve problems around us.
Businesspeople only have to achieve business success. Al the effort is for making expansion strategies and business growth. All the decisions are for the business and how the company will make profits. It is a make or break situation that may involve exploiting customer weaknesses and naivety.
Unsupervised, business people will gladly skip regulations if it means making more profits.
2# Team and Work
Entrepreneurs are individuals that take the entire grunt of the business on their shoulders. There is no one to support their ideas except fellow like-minded idealists. Therefore, all risks and losses are not shared.
Entrepreneurs lack a huge support structure compared to businesspersons. In contrast, a businessperson has a team of professionals that share the burden of responsibility.
It means that a businessperson has people who must delegate duties to be achieved within a specific time.
Depending on the company’s size, a business person can oversee professionals from different fields to guarantee success and business growth.
3# Workstation and Location
Entrepreneurs do not care so much about the business location. Some operations don’t have a fixed location and conduct nomad business. Businesspersons have fixed offices where they go daily to meet day-to-day objectives.
Entrepreneurs prefer coworking options when starting their business ideas. It means they are mobile and can work anywhere that the business demands. Businesspeople have facilities with wide spaces to accommodate in-house working.
While entrepreneurs can operate from shared workspaces, business owners need to establish where they can oversee employee operations.
Most entrepreneurs run startup businesses and hence tend to operate in virtual offices. Though they have a fixed location is not as mandatory as it is for business people to have a permanent address and work office.
4# Skill and expertise
The mandatory skillset of an entrepreneur is to adapt and readjust. The title descriptions entail achieving the idea despite the challenges. Entrepreneurs must find it within themselves to overcome negative business results by finding immediate solutions.
Business people take account of their experiences from working for many years and develop strategies to anticipate known challenges. Business people know the risks and the ways to overcome them before starting the business.
Entrepreneurs value belief than skill as they will learn from their experiences. Businesspersons follow a ma successful model and already know the implications of taking certain steps.
5# Action vs. Reaction
The mechanic of operations between an entrepreneur and a businessman is not the same. When an entrepreneur starts a project, the endgame is achieved only when he handles everything from the concept stage, design, evaluation, and execution.
Whereas the businessperson controls parts of an existing workforce. The title demands that the businessman represents the company in events that ensure business growth.
Business people focus more on market fluctuations and how the changing factors affect current and future business. They decide when employees are redundant and create new positions to achieve the company objectives.
A business person must always react to business changes when an entrepreneur is always executing different actions, hence always acting instead of reacting.
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Despite the glaring differences between an entrepreneur and a businessman, the world needs both of them. While an entrepreneur is a market leader, a businessperson is a market player. Eventually, all entrepreneurs become businessmen when they achieve business success.
All businessmen target profit and success, and this is good for the economy. Market players ensure that prices remain competitive, and consumers get options from different brands. Market leaders shape the way of doing business, making it convenient to access certain goods and services. None supersedes the other.