Difference between Entrepreneur and Entrepreneurship

Difference between Entrepreneur and Entrepreneurship

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Chanchal
Chanchal Aggarwal
Senior Executive Content
Updated on Feb 9, 2024 10:32 IST

The key difference between entrepreneur and entrepreneurship is entrepreneur is the individual, while entrepreneurship is the action and process that a person undertakes. An entrepreneur is a person who initiates, operates, and assumes the risk of a business venture. In contrast, entrepreneurship refers to the process of designing, launching, and running a new business. It comprises the entire journey and the methodologies involved.

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Imagine you have a friend named Sarah who loves designing and creating unique jewellery. One day, she decides to turn her passion into a business. Sarah, a person, became an entrepreneur by starting her own jewellery company called “Sparkling Gems.” She takes on the role of an entrepreneur by designing jewellery, sourcing materials, and selling her creations to customers.

On the other hand, Entrepreneurship is the whole process of Sarah starting and running her jewellery business. It includes her creative ideas, the risks she takes, and the actions she takes to turn her passion into a successful venture. 

From the above example, we can clearly see entrepreneur and entrepreneurship difference. Sarah is the Entrepreneur (person) who starts and manages her jewellery business. While Entrepreneurship (process) encompasses the entire process of Sarah bringing her passion for jewellery to life and running her own successful company.

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Let’s dive deeper into meaning along with the difference between entrepreneurship and entrepreneur.

Table of Content

Also read: Entrepreneurial Process: Meaning and Stages

Comparative Table: Entrepreneur and Entrepreneurship

Aspect Entrepreneur Entrepreneurship
Definition An individual who initiates and operates a business venture The concept, mindset, and process of creating and managing a business
Motivation Driven by personal vision, passion, and ambition Driven by innovation, identifying opportunities, and solving problems
Role Plays an active and hands-on role in the business Represents the collective qualities and characteristics of entrepreneurs
Risk-taking Takes calculated risks to pursue business opportunities Embraces uncertainty, takes risks, and adapts to changing circumstances
Creativity Uses creativity and innovation to develop new ideas Encourages and fosters creativity and innovation in business ventures
Leadership Assumes leadership and decision-making responsibilities Advocates for leadership, initiative, and taking ownership of ideas
Impact Directly influences the success or failure of the business Shapes industries, economies, and societal progress through entrepreneurial activities
Growth Seeks growth and scalability for the business venture Drives economic growth and job creation through entrepreneurial endeavours
Mindset Possesses an entrepreneurial mindset and mindset traits Reflects a culture of innovation, resilience, and adaptability
Personal Risk Bears personal financial and professional risks Encourages calculated risk-taking while managing potential risks
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Who is Entrepreneur?

An entrepreneur is an individual who initiates, creates, and manages a business venture, taking on significant financial risks in the pursuit of profit. This role involves identifying market opportunities, devising innovative solutions, and steering the business through its growth stages. Entrepreneurs are key drivers of economic development, often bringing new products and services to market, creating jobs, and contributing to economic growth through their entrepreneurial ventures. Their journey combines vision, innovation, and the willingness to tackle challenges head-on.

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What is Entrepreneurship?

Entrepreneurship is the dynamic process of creating, launching, and running a new business venture. It involves not just the act of establishing a business, but also innovating, taking calculated risks, and continuously managing and growing the business. Entrepreneurship encompasses the identification of market opportunities, resource mobilization, and the ability to withstand market challenges, aiming at generating profit and growth. It's a journey that balances innovation, strategy, and risk management, often leading to job creation and significant contributions to the economy.

5 Entrepreneurs and Their Successful Global Ventures

Entrepreneur

Venture

Unique Aspect of Business

Ratan Tata

Tata Group

Diversified global conglomerate with a focus on ethics and philanthropy

Elon Musk

Tesla, SpaceX

Innovator in electric vehicles and private space exploration

Falguni Nayar

Nykaa

Founded and grew Nykaa into a leading beauty and wellness e-commerce platform in India

Mukesh Ambani

Reliance Industries

Transformed India's telecom sector with affordable 4G services

Bill Gates

Microsoft

Pioneer in personal computing software and business solutions

Jeff Bezos

Amazon

Revolutionized global e-commerce and cloud computing

Difference Between Entrepreneur and Entrepreneurship 

Individual vs. Concept: An entrepreneur is an individual who takes the initiative to start and operate a business venture. Entrepreneurship represents the broader concept, mindset, and process of creating and managing a business.

Focus: Entrepreneur focuses on their specific business venture. They bring their personal vision, ideas, and passion to life. On the other hand, entrepreneurship focuses on the overall ecosystem of innovation, opportunity, and business creation.

Role and Action: Entrepreneur plays an active role in their business. They assume leadership, make decisions and take calculated risks to pursue opportunities. Entrepreneurship, however, represents entrepreneurs’ collective qualities, characteristics, and actions.

Scope: An entrepreneur’s scope is limited to their own business venture. They take direct responsibility for their venture’s success or failure. Entrepreneurship has a broader scope. It encompasses the development of an entrepreneurial ecosystem, fostering creativity, and driving economic growth.

Personal vs. Collective: An entrepreneur is driven by personal ambition and passion. On the other hand, entrepreneurship represents the collective efforts, mindset, and culture of innovation, resilience, and adaptability that enable entrepreneurial endeavours.

Impact: Entrepreneur primarily focuses on their own business venture. Entrepreneurship has a wider impact on industries, economies, and societal progress by creating jobs, innovations, and economic growth.

Conclusion

The entrepreneur and entrepreneurship difference lies in their focus, scope, and impact. An entrepreneur is an individual who takes the initiative to start and operate a business venture. They bring their personal vision, ideas, and passion to life. They play an active role in their venture, assuming leadership, making decisions, and taking calculated risks. 

On the other hand, entrepreneurship encompasses the broader concept, mindset, and process of creating and managing a business. It represents entrepreneurs’ collective qualities, characteristics, and actions. It is about fostering a culture of innovation, resilience, and adaptability. Entrepreneurship goes beyond the actions of a single entrepreneur and has a wider impact on industries, economies, and societal progress. 

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FAQs

What is an entrepreneur?

An entrepreneur is an individual who identifies opportunities, takes calculated risks, and creates innovative solutions to meet market demands. They are driven by a passion to build and grow their own businesses or ventures.

What is entrepreneurship?

Entrepreneurship refers to the process of conceptualizing, launching, and managing a new business venture. It involves the identification of market needs, the creation of innovative solutions, and the allocation of resources to turn ideas into profitable enterprises.

What are the key characteristics of an entrepreneur?

Entrepreneurs typically possess certain key characteristics, including a strong drive and determination, a willingness to take risks, creativity and innovation, the ability to adapt to change, strong leadership skills, and a passion for their chosen field or industry.

What is the main difference between an entrepreneur and entrepreneurship?

The main difference lies in their focus and scope. An entrepreneur is an individual, while entrepreneurship refers to the broader concept and process of starting and managing a business venture. An entrepreneur is the person who initiates and leads the entrepreneurial process, whereas entrepreneurship encompasses the activities, strategies, and mindset involved in creating and developing a business.

About the Author
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Chanchal Aggarwal
Senior Executive Content

Chanchal is a creative and enthusiastic content creator who enjoys writing research-driven, audience-specific and engaging content. Her curiosity for learning and exploring makes her a suitable writer for a variety ... Read Full Bio