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Difference Between Entrepreneur and Manager: Example, Meaning

Updated on :  

08 min read.

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:

ParticularsEntrepreneurManager
MeaningIt 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 companyThey are visionaries who convert an idea into a business. They are the owners of the company.They are the employees of the company.
FocusThey focus on business startups.They focus on ongoing operations.
RiskThey bear all financial and other risks.They do not bear any risks.
FocusThey focus on starting the business and expanding the company.They focus on the daily smooth functioning of the company.
MotivationTheir key motivation is the achievements of the company.Their motivation comes from the power that comes with the position.
RewardTheir reward is the profit they earn from the company.Their reward is the salary they draw from the company.
ApproachThey 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 decisionsThey 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 makingThe 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.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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