Difference Between Entrepreneur and Businessman

Difference Between Entrepreneur and Businessman

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Syed Aquib Ur
Syed Aquib Ur Rahman
Assistant Manager
Updated on Jan 18, 2024 18:37 IST

An entrepreneur’s purpose is to create a unique concept in the market. The purpose of a businessman is to optimise revenue. But there is more to know when it comes to identifying the difference between entrepreneur and businessman.

entrepreneur vs businessman

The primary difference between entrepreneur and businessman is that the entrepreneur comes with an original idea for a product or service. In contrast, the businessman is focused on operating a business to earn revenue without any original idea. Let’s find out more about how entrepreneurs and businessmen are different. 

Difference Between Entrepreneur and Businessman 

Here are the top parameters that show the difference between entrepreneur and businessman.

Parameter Entrepreneur Businessman
Purpose Create a unique product or service in the market Optimise revenue on a product or service that is not unique
Risk High risk with no guarantee of success Lesser risk as the product already sells in the market
Types Innovative, hustlers, imitators, buyers, etc. Sole proprietor, general partner, small business owner, etc.
Characteristics Curiosity, team-building, experimentation, persistence, not being afraid to fail, etc. Communication, strategy and leadership, quick decision-making, business strategy knowledge, foresight, etc.
Market Competition Very low as the product is not known to the public or other businesses Very high as the product is sold by similar competitors
Examples Elon Musk, Steve Jobs, Jack Ma, etc. Jeff Bezos, Bill Gates, etc.

Explore Online Entrepreneurship Courses

Who is an Entrepreneur?

An entrepreneur can be deemed a visionary in the market who conceptualises a product or service that can potentially boost the economy and society’s well-being. The functions of an entrepreneur include identifying possibilities, assembling resources, and fostering innovation to meet market demands with effective solutions.

Entrepreneurship involves setting up a business venture with investors and partnerships. Entrepreneurs are also aware of the high risks in setting up ventures, as there is no return guarantee. But this challenge can be equally rewarding, as the competition is usually low in a niche. 

Related: Entrepreneurship courses

Also read: Difference between Entrepreneur and Entrepreneurship

Types of Entrepreneurs

  • Innovators – These entrepreneurs focus on creating a new product that differentiates itself in the market. They need a considerable amount of capital to start with. 
  • Hustlers – This type of entrepreneur is more concerned with the vision of creating a product than making money. They differentiate themselves through less capital and less original ideas, but with a firm conviction and strong work ethic. Hustler entrepreneurs take longer to succeed. 
  • Buyers – This type of entrepreneur has a lot of capital to evaluate a business’s potential and acquire it to run independently. 
  • Imitators – As the name suggests, these entrepreneurs use someone else’s idea that may have failed before to improve upon it. 

Check out the detailed out blog on Types of Entrepreneurs

 

Who is a Businessman?

A businessman, businessperson or business owner focuses on improving revenue for a product or service already in the market. They focus on business strategy to provide a vision for their employees and grow revenue. 

Types of Businessmen

  • Sole Proprietor – The businessperson owns the whole business without any partners. 
  • General Partner – In a general partnership, more than two businesspersons run the business. Each partner is liable for the actions of the other partners. 
  • Small Business Owner – These businesspersons own their business that targets a specific audience. 

Similarities Between Entrepreneur and Businessman

Also, highlighting the parallels between both professions below. 

Work Ethic and Long Hours

Both the entrepreneur and the business owner show an unwavering work ethic. They tirelessly dedicate themselves to their pursuits. They share a common ethos of hard work by often putting in extensive hours to propel their ventures forward.

Sales and Self-Promotion Skills

Another parallel between these roles lies in their prowess in salesmanship and self-promotion. Both the entrepreneur and business owner possess a knack for effectively selling their products, services, or ideas. They excel in articulating the value propositions of their offerings. They are able to leverage persuasive communication to attract customers, investors, or stakeholders. Additionally, a strong sense of self-promotion helps in building their brand, establishing credibility, and expanding their network.

Starting as Small Ventures

The journey often commences with humble beginnings for both the entrepreneur and the businessman. They share the experience of starting as small-scale ventures, navigating the initial stages of their enterprises. This initiation allows them to grasp the intricacies of their industry, comprehend market dynamics, and adapt swiftly to changing circumstances. Such a foundation serves as a learning ground, providing invaluable insights that contribute to their eventual growth and success.

Parting Thoughts

There you go! Now you know the difference between entrepreneur and businessman. Both have unique advantages in the market and society, and each requires a growing skill set to succeed. If you are inspired enough, explore the free entrepreneurship and startup courses

Further Reads

Difference between Entrepreneur and Entrepreneurship
Difference between Entrepreneur and Entrepreneurship
An entrepreneur is an individual who starts and operates a business venture. In contrast, entrepreneurship encompasses the broader concept, mindset, and process of creating and managing businesses. Uncover the diverse...read more
Difference Between Entrepreneur and Manager
Difference Between Entrepreneur and Manager
An entrepreneur typically initiates and takes risks to establish and grow a business, while a manager optimises operations and resources within an established business framework. The blog covers the definition...read more

FAQs

Do entrepreneurs and businessmen have different goals?

Yes, entrepreneurs and businessmen often have different goals. Entrepreneurs are driven by a desire to innovate, create something new, and disrupt existing markets. They may be more focused on growth, expansion, and realizing their vision. Businessmen, on the other hand, may be more focused on maintaining stability, optimising operations, and maximising profits within an established business.

What skills and qualities distinguish entrepreneurs from businessmen?

Entrepreneurs are often characterised by their creativity, risk-taking ability, vision, and resilience. They possess strong leadership and problem-solving skills, as well as the ability to adapt to changing circumstances. Businessmen, on the other hand, tend to excel in areas such as strategic planning, financial management, and operational efficiency. They may have a more structured and systematic approach to managing business operations.

Is CEO called an entrepreneur?

The title of CEO (Chief Executive Officer) is not inherently synonymous with the term entrepreneur. A CEO is a title within a company's organizational structure, often responsible for overseeing the day-to-day operations and strategic direction of an established business. While some CEOs may also be entrepreneurs who founded the company they lead, not all CEOs fit the traditional entrepreneurial profile. 

About the Author
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Syed Aquib Ur Rahman
Assistant Manager

Aquib is a seasoned wordsmith, having penned countless blogs for Indian and international brands. These days, he's all about digital marketing and core management subjects - not to mention his unwavering commitment ... Read Full Bio