What is the difference between a businessman and an entrepreneur?
DON’T START A BUSINESS BEFORE YOU READ THIS ARTICLE.
The rise of social media connectivity and the internet has created a feed into our need to be recognized we have been made to believe that an entrepreneur is the coolest thing one can become , it might look cool to be an entrepreneur but the truth is it is not and most of the people have a misconception that the terms businessman and entrepreneur, carry the same meaning.
Due to which they use them interchangeably, I won’t say that they are wrong, in the long run, an entrepreneur becomes a business, but there is a difference.
Because of social media some people have become social media entrepreneurs and also because of the rise of the Rock star entrepreneurs like Elon Musk , Mark Zuckerberg , and Bill Gates many social media coverage have showed us success stories that have made us to believe it’s cool to be an entrepreneur before we even understand what it really is (the behind the scenes of entrepreneurship).
Sometimes we even keep up appearances that even make us look successful even when we have no idea what we are doing.
Even the terms will sound same for a layman, but there is a fine line amidst the two. A businessman walks on the defined path, but an entrepreneur believes in making his own path, which becomes a guideline for other businessmen.
In this article, I will help you know the difference between businessman and entrepreneur.
What is a businessman?
A simple definition can say it’s an activity that provides goods and services in exchange for money. hence the “why” that drives the business is profits and a positive statement of financial position.
A businessman is basically a person with a certain amount of capital ready to do an activity that provides existing goods or services in the market place. These people usually find it easy to access capital from banks, friends or family because “they talk sense”, since they are not trying something new, they are already working on proven industries.
A person who is engaged in carrying out any activity, related to commercial and industrial purposes is known as Businessman. He sets up his business as a new entrant in the market as for the existing business.
When it comes to originality of ideas, most of the businessmen go for a business which is highly in demand or which can make huge profits for them irrespective of uniqueness.
A businessman faces tough competition because there are hundreds of rivals already existing in the market undertaking the same business. Although the risk factor is low because he walks on a path that is already tested by the rivals so the chances of failure are relatively low.
The main objective of a businessman of conducting the economic activities is to generate revenue by employing the human, financial and intellectual resources. By virtue of this, customers are treated as the king of business by the businessman.
An entrepreneur is a person who conceives a unique idea or concept to start an enterprise and brings it into reality. He is the person who bears risks and uncertainties of the business. Entrepreneurship is how ever defined as an activity which creates value or brings value to the market place, and by bringing value to the market place people get to pay for that value. this means an entrepreneur creates a business after offering value to the market place.
The venture established by the entrepreneur is known as Startup Company, which is formed for the very first time regarding the idea, innovation or business process. They are the ones who lead the market always no matter how many competitors will come later, but their position will remain untouched.
Entrepreneurs don’t work for money, they are eager to work for months without getting any profits and even getting into debt day by day to make an idea work, they have a culture of delayed gratification and usually creates a system that will generates a larger amount of revenue and profits.
In economics, the entrepreneur is considered as the most important factor of production, which assembles and mobilizes the other three factors of production i.e. land, labor and capital. In the long run, these entrepreneurs become a businessman.
Entrepreneurs are known for their creative approach. They introduce innovation and coordinate the resources.
They offer such products and services which bring about a change in the world. Some real-life examples of such entrepreneurs are Bill Gates (founder of Microsoft), Mark Zuckerberg (co-founder of Facebook), Larry Page (co-founder of Google), Steve Jobs (co-founder of Apple).
Entrepreneur vs Businessman
A person who brings his unique idea to run a startup company is known as an entrepreneur. A businessman is a person who starts a business on an old concept or idea.
A businessman makes his place in the market with his efforts and dedication, whereas an entrepreneur creates the market for his own business.
The businessman is a market player while Entrepreneur is a market leader because he is the first to start such a kind of enterprise.
The nature of a businessman is calculative, but an entrepreneur is intuitive.
As the businessman follows the footsteps of other businessmen, the possibility of failure is very less which is just opposite in the case of the entrepreneur.
A businessman uses traditional methods to run the business. Conversely, an entrepreneur applies unconventional methods for the same.
A businessman is oriented towards profit; however, an entrepreneur is a people-focused in essence, he gives more importance to its employees, customers, and the public.
The businessman faces extreme competition because it is very difficult to gain a competitive position in an already existing market, which is not in the case of an entrepreneur.
However these two co-exists in the market place and one can not survive without another for example companies like Apple Inc. creates innovative products like the Mac Book and iPhone, to sell a larger number of these they need retailers to bring most of their products to the market place.
In conclusion, many people do not understand this and many call themselves entrepreneurs when they are not if you call yourself an entrepreneur while you do not have the above qualities of characteristics in your way of doing business you probably need to reconsider because you will go down sooner than you think.
This is a guest post by Phillip Jonhera
Business Speaker // Entrepreneur
Co-Founder of Optar Technologies
President of the Entrepreneurs Community
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