Often the words “entrepreneur” and “business person” are used interchangeably. But the fact is that the meaning they signify is as different from each other as it can possibly be. In the course of ignorance, many businessmen label themselves as entrepreneurs.
A business person is any person that engages in a series of economic activities with the primary goal of earning a profit/money.
An entrepreneur, on the other hand, is someone who conceives an idea or a solution to a current problem that the society is facing finds investors and sets up an enterprise to offer his expertise to the general public. It is an individual who takes a risk and invests resources to make something new, designs a new way of making something that already exists, creates new markets.
There are many differences between an Entrepreneur and a businessman like in the way both think, operate, and do business.
1) Risk-taking ;
A businessman is afraid to take risks whereas an entrepreneur is always ready to plunge deep in. A businessman is apprehensive about trying new things. An entrepreneur is almost habitual of taking risks.
An entrepreneur always seeks to establish a business venture of his own, while a Businessperson can take over an existing business.
A businessman, more often than not, sticks with his older products and is afraid to innovate. An entrepreneur is renowned for his knack of innovating and creating a better product for society.
Entrepreneurs are driven by three motives which are Money, independence, and personal fulfilments (i.e. need to achieve a satisfying way of life) while the primary motive for a business person is getting money.
5) Profit-making and growth:
Entrepreneurs usually seek rapid growth, mediate, and high profits while a Businessperson runs a business for a long period of time in order to get profit and the growth of a business.
Other differences between Entrepreneur and Business Person include;
- The entrepreneur has an object to provide a never-tried-before solution to an existing problem instead of capitalizing on a tried-and-tested idea. A businessman starts his business with an already existing and mostly a well-exploited area whereas an entrepreneur conceives a fresh concept/idea/solution to start his enterprise.
- Adding value to society is the reason entrepreneurs exist. Entrepreneurs want to bring in a revolutionary change in the way society thinks and works.