Seven Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are most of the time interchangeable to use. I have also been guilty of using one or the other sometimes. However, I think there are significant differences between how entrepreneurs run their business and how they run their business. Entrepreneurship is about taking risks and accepting any rewards or failures that follow.
The purpose of the business is to recycle the product. Therefore, business is more like a transaction. Trading I mean buying goods from one place while selling in another. It may also involve manufacturing at a certain step, but the rationale remains the same.
Entrepreneurs create something new. They identify a problem and strive to create innovative solutions that help reduce or eliminate the problem. Even if they do business, they will apply innovative methods.
Let me give you an example. If the retail chain owner will sell Internet as one of his channels, he is just a businessman trying to find new ways to get more business. However, if he creates an innovative product that never existed, he is an entrepreneur. Here, he risked his own risk.
Entrepreneurs will not work in areas where there are already crowds. He will use his scarce money to explore new ones. He will, for example, go to new sales channels (Internet, mobile e-commerce, etc.), innovative products (a new software), innovative marketing techniques (viral marketing). He focuses on market competition too intense in a niche area.
Because people do not believe his ideas, entrepreneurs have to put his money in the first line. He must prove that he created the product there is a market. Then only he can get external financing. This is in contrast to formal enterprises, which know that the market exists, so that investors are more willing to invest in them
If the risk is high, the reward is also true. A successful entrepreneur obtains more monetary benefits than his business people. Less risky routine business will result in lower return on investment. Guarantee in the normal business to make money, but more than entrepreneurial spirit.
Entrepreneurship must be more risky and uncertain than ordinary enterprise. The problem that entrepreneurs face almost daily is the success of his product, the cost of developing the product, the adoption of the customer, the motivation of the team, and everything else. Uncertainty and non-uniformity of sales.
However, a regular business has more or less regular sales, and not as entrepreneurial uncertainty
Entrepreneurs are built on vision and they can not do it alone. Therefore, the entrepreneur constantly needs to remind his team and himself, what they are creating, and why it will work. Entrepreneurs must always find new ways to motivate their employees. The role of an employee changes frequently according to perceived business conditions
However, in an enterprise, the role of an employee is the same throughout the enterprise's lifecycle
Entrepreneurs do not have much cash. So they provide equity to employees. When the business succeeds, everyone who owns a share becomes rich. One of the most important examples is Infosys technology in Bangalore. It just created so many millionaires by distributing shares to the founders and employees of the company.
I've never said that a business can not be an entrepreneur, and vice versa, but there is an important difference between business risk and the way the business works. However, entrepreneurs can become entrepreneurs by making innovations, while entrepreneurs can reduce uncertainty by being more entrepreneurial