Updated on: Oct 31st, 2022
6 min read
Usually, the terms businessman and entrepreneur are used interchangeably, but they are two different words and refer to separate individuals possessing distinct approaches to a business. A businessman follows an established path engraved by someone with an unoriginal idea, but an entrepreneur believes and thinks about making his/her own path with new ideas.
A businessman runs an undertaking or a business, whereas an entrepreneur runs a startup with an original, innovative product/idea. An entrepreneur may become a businessman in the future. The significant difference between an entrepreneur and a businessman is that an entrepreneur comes up with a unique concept or idea, while a businessman sets up a business as a new entrant in an existing market on industrial or commercial grounds.
A businessman is an individual who starts or operates a business with an unoriginal business idea. A businessman is an individual carrying out an activity related to industrial and commercial purposes. He/she chooses to establish a business in a field or area in high demand or give maximum profits in return, irrespective of uniqueness.
The business faces stiff competition as many companies already have similar business ideas in the market. However, the risk factor is low as the business concept is tried and tested by other existing companies; thus, there is less chance of failure. The objective of a businessman in conducting business activities is to generate revenue by employing intellectual and financial resources. Thus, customers are treated as the king of business.
Some examples of a businessman are the founders of saree shops, furniture shops, grocery stores, garment shops, etc.
An entrepreneur is an individual having an exclusive idea to establish and initiate a new venture and bring a change in the world. An entrepreneur is highly innovative and creative, takes a risk, and endures unpredictable situations in the business. Businesses started by entrepreneurs with a new concept are known as a startup.
Entrepreneurs are known for their creative approach. They coordinate resources and introduce innovation. They offer services and products that bring about a change in the world. They are an integral part of the business operation and build and deploy other functions of the operations, i.e. land, labour and capital.
Some examples of entrepreneurs are Mark Zuckerberg (co-founder of Facebook), Bill Gates (founder of Microsoft), Steve Jobs (co-founder of Apple), Larry Page (co-founder of Google), etc.
Below are the differences between an entrepreneur and a businessman:
|Definition||An entrepreneur is an individual having an exclusive idea to establish a new venture.||A businessman is an individual who establishes a business with an old business idea.|
|Market position||Entrepreneurs are market leaders.||Businessmen are market players.|
|Market||Entrepreneurs create a market for his/her business ideas.||Businessmen make a place in an already existing market with effort and dedication.|
|Nature||Entrepreneurs are intuitive.||Businessmen are calculative.|
|Risk factor||The risk of failure is very high.||The risk of failure is less.|
|Method of operation||Uses unconventional methods to run the business.||Uses traditional methods to run the business.|
|Focus||Focused in essence and gives importance to customers, employees and the public.||Focus is oriented towards profit.|
|Goals||Entrepreneurs are visionary, and they set long-term goals.||Businessmen are focused on short-term profits.|
|Competition||Low competition for the business since they enter a new market.||Faces extreme competition since it is difficult to obtain a competitive position in an already existing market.|
A businessman is different from an entrepreneur. An entrepreneur is an organiser, manager and risk taker. A businessman focuses on competition, while an entrepreneur emphasises cooperation and coordination of all the resources. An entrepreneur can become a businessman in the future.
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