Difference Between Entrepreneur and Manager

Difference Between Entrepreneur and Manager

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Rashmi Karan
Manager - Content
Updated on Feb 27, 2024 14:34 IST

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 of entrepreneurs and managers, along with the difference between an entrepreneur and a manager.


Entrepreneurs Start Companies, Managers Run Them

Entrepreneurs are the dynamic force behind the planning and launching novel business ventures. They are involved in all aspects of their business throughout its lifespan, beginning with the raw startup stage, when the business is little more than an idea. The main difference between entrepreneurs and managers is their role in the organization.

An entrepreneur is the company owner, while a manager is the company’s employee. Entrepreneurs take risks, particularly financial ones, while managers are not susceptible to business-related risks. This blog will cover the significant differences between entrepreneurs and managers.

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Difference Between Entrepreneur and Manager

  Entrepreneur  Manager
Job Role Establishing a company Running daily operations
Status in the organization Owner Employee
Job Focus Entrepreneurs focus on thinking big, tapping unexplored territories, and bringing change. Managers are responsible for carrying out business plans as directed and meeting the defined targets.
Monetary Benefits The profit obtained from business management Salary earned for managing daily business operations
Motivation Organizational achievements work as motivation for entrepreneurs Power and perhaps compensation
Decision making An entrepreneur’s decisions are driven by inductive logic, courage, and determination. A manager’s decision-making is calculative, as they are based on deductive logic, information gathering and advice.
Creativity The main driving force of an entrepreneur is creativity and innovation A manager maintains the current state of affairs but is prompted to get innovative and think out of the box
Specialization  Any enterprising individual can become an entrepreneur. They do not need to be specialized in any particular trade. Managers are trained to perform a set of tasks. They are specialists in their domain.

What is an Entrepreneur?

The entrepreneur is someone who, individually or collectively, establishes a company, sets the objectives, and makes strategic decisions about the goals, management, administration, and control of the company or companies while taking up its commercial and legal responsibilities.

The term generally applies to upper management, including executive directors, board members, etc. They are usually the “majority shareholders” or those who own multiple investments or are business owners.

The work of entrepreneurs can include/may not be limited to that of an owner, capitalist, or financier. They can be managers or administrators, too.

Must Read – What is Entrepreneurship?

What is a Manager?

A manager manages an organization, institution, company, or part of it. The manager’s role is to use the resources at his disposal as efficiently as possible to obtain the maximum possible benefit from them. In other words, maximize your organization’s or assigned area’s productivity.

In corporate setups, a manager is usually an employee; they earn a defined annual salary for managing daily business operations.

The general responsibilities of managers centre around ensuring that the company’s daily operations run smoothly. This does not mean they must perform all the specific tasks themselves; instead, they ensure that the department or units they supervise deliver results.

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Entrepreneur and Manager are not interchangeable terms. However, management tasks are an essential part of the functions of an entrepreneur. While entrepreneurs are managers, not every manager is an entrepreneur.


What is the primary role of an entrepreneur?

Entrepreneurs are primarily responsible for identifying business opportunities, creating new ventures, and taking financial risks to turn innovative ideas into profitable businesses.

What is the primary role of a manager?

A manager is primarily responsible for overseeing and coordinating the day-to-day operations of an existing business or organization to achieve its goals efficiently and effectively.

Do entrepreneurs and managers have different approaches to risk?

Yes, entrepreneurs are more willing to take calculated risks, as they often invest their capital and resources in new ventures. Managers, on the other hand, tend to mitigate risks and maintain stability within existing operations.

Can someone be both an entrepreneur and a manager?

Yes, individuals can transition between these roles or simultaneously act as both in different capacities. For example, an entrepreneur may hire managers to oversee day-to-day operations once a business is established.

How do compensation and rewards differ for entrepreneurs and managers?

Entrepreneurs can reap significant financial rewards if their ventures succeed but may face financial losses if they fail. Managers typically receive stable salaries and bonuses based on their performance but do not have ownership stakes in the business.

About the Author
Rashmi Karan
Manager - Content

Rashmi is a postgraduate in Biotechnology with a flair for research-oriented work and has an experience of over 13 years in content creation and social media handling. She has a diversified writing portfolio and aim... Read Full Bio



Itemize six differences between an Entrepreneur and a Manager.

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