Difference Between Entrepreneur and Manager: Example, Meaning
An entrepreneur is a person with the skills, ideas and courage to take risks to pursue a business idea. A manager is a person who manages the functions and operations of an organisation. The significant difference between an entrepreneur and a manager is their role in an organisation.
An entrepreneur owns a company, while a manager is the company employee. An entrepreneur is a risk taker who takes financial risks for the enterprise. A manager does not take risks and tries to maintain the status quo of the enterprise.
Meaning of Entrepreneur
Entrepreneurs establish a new organisation by assembling inputs, i.e., labour, land and capital, for production purposes. They assume risk and business uncertainty to achieve growth and profit of the business venture by combining resources and identifying new opportunities to capitalise on them. They innovate new business processes and ideas. They are persons responsible for building an organisation and taking business risks for profits.
Example: An entrepreneur is the company’s CEO who establishes the company and takes business risks to gain profits.
Meaning of Manager
Managers are responsible for the administration and management of a group of people or a department of the company. Their day-to-day job is to manage employees and ensure the smooth running of the organisation. They must possess similar qualities of an entrepreneur, like accountability, leadership, decisiveness, etc. They must also have qualities such as empathy and warmth. They may direct supervisors who will command workers or directly command workers. They are responsible for supervising subordinates, who report to and work under them.
Example: A manager is the head of a department in a company, such as a director or a team leader, who administers the group of people under him/her and ensures the company runs smoothly.
Difference between Entrepreneur and Manager
The difference between an entrepreneur and a manager are as follows:
| Particulars | Entrepreneur | Manager |
| Meaning | It refers to persons who establish a company or enterprise and takes a financial risk to get profits. | They are individuals responsible for administering and controlling a group of people in the company or enterprise. |
| Position in the company | They are visionaries who convert an idea into a business. They are the owners of the company. | They are the employees of the company. |
| Focus | They focus on business startups. | They focus on ongoing operations. |
| Risk | They bear all financial and other risks. | They do not bear any risks. |
| Focus | They focus on starting the business and expanding the company. | They focus on the daily smooth functioning of the company. |
| Motivation | Their key motivation is the achievements of the company. | Their motivation comes from the power that comes with the position. |
| Reward | Their reward is the profit they earn from the company. | Their reward is the salary they draw from the company. |
| Approach | They can be casual in their role and have an informal approach. | Their approach to every problem is formal, and they take a scientific approach. |
| Nature of decisions | They are risk-takers. They take calculated risks to drive the company. | They are risk-averse. Their job is to maintain the status quo of the company. |
| Decision making | The decisions tend to be intuitive. | The decisions are calculative. |
| Specialisation | They do not need to be specialised in any particular trade. | They are trained to perform tasks and are specialists in their domain. |
An entrepreneur and a manager are two different persons in a company/organisation. While managers are concerned with managing the available resources, entrepreneurs focus on capitalising on opportunities.
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Quick Summary
An entrepreneur is a risk-taking owner of a company with a focus on growth, while a manager oversees daily operations and maintains the status quo. Entrepreneurs start businesses and take financial risks, while managers manage employees and ensure organization efficiency. Entrepreneurs innovate, while managers make calculated decisions. Entrepreneurs have a casual approach, while managers have a formal one.
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