A businessman walks on the defined path, but an entrepreneur believes in making his own path, which becomes a guideline for other businessmen. Most of the people have a misconception that the terms businessman and entrepreneur, carry the same meaning, due to which they use them interchangeably.
A businessman is a person who runs the business, undertaking an unoriginal business idea. On the contrary, an entrepreneur is someone who first initiates a product or business idea and thus the leader of that in the market.
In the long run, an entrepreneur becomes a businessman, but there is a difference. Even the terms will sound same for a layman, but there is a fine line amidst the two, in the sense that an entrepreneur is always a market leader whereas a businessman is a market player. In this article, we will help you learn the difference between businessman and entrepreneur.
Content: Businessman Vs Entrepreneur
Comparison Chart
| Basis for Comparison | Businessman | Entrepreneur |
|---|---|---|
| Meaning | A businessman is someone who sets up a business with an existing idea offering products and services to the customers. | An entrepreneur is a person who starts an enterprise with a new idea or concept, undertaking commercial activities. |
| Market Position | Market Player | Market Leader |
| Nature | Calculative | Intuitive |
| Market | Creates place in existing markets | Creates new market |
| Risk factor | Less | Comparatively high |
| Methods applied for doing things | Conventional | Unconventional |
| Approach | Holistic | Atomistic |
| Orientation | Profit | People |
| Competition | Very high | Low |
Definition of Businessman
A person who is engaged in carrying out any activity, related to commercial and industrial purposes is known as Businessman. He sets up his business as a new entrant in the market as for the existing business. When it comes to originality of ideas, most of the businessmen go for a business which is highly in demand or which can make huge profits for them irrespective of uniqueness.
A businessman faces tough competition because there are hundreds of rivals already existing in the market undertaking the same business. Although the risk factor is low because he walks on a path that is already tested by the rivals so the chances of failure are relatively low.
The main objective of a businessman for conducting the economic activities is to generate revenue by employing the human, financial and intellectual resources. By virtue of this, customers are treated as the king of business by the businessman.
Definition of Entrepreneur
An entrepreneur is a person who conceives a unique idea or concept to start an enterprise and brings it into reality. He is the person who bears risks and uncertainties of the business. The venture established by the entrepreneur is known as Startup Company, which is formed for the very first time regarding the idea, innovation or business process.
He/She is the ones who lead the market always no matter how many competitors will come later, but their position will remain untouched.
In economics, the entrepreneur is considered as the most important factor of production, which assembles and mobilizes the other three factors of production i.e. land, labor and capital. In the long run, these entrepreneurs become a businessman.
Entrepreneurs are known for their creative approach. They introduce innovation and coordinate the resources. They offer such products and services which bring about a change in the world.
Some real life examples of such entrepreneurs are Bill Gates (founder of Microsoft), Mark Zuckerberg (co-founder of Facebook), Larry Page (co-founder of Google), Steve Jobs (co-founder of Apple) etc.
Key Differences Between Businessman and Entrepreneur
The following are the differences between businessman and entrepreneur
- A person who brings his unique idea to run a startup company is known as an entrepreneur. A businessman is a person who starts a business on an old concept or idea.
- A businessman makes his place in the market with his efforts and dedication, whereas an entrepreneur creates the market for his own business.
- The businessman is a market player while Entrepreneur is a market leader because he is the first to start such a kind of enterprise.
- The nature of a businessman is calculative, but an entrepreneur is intuitive.
- As the businessman follows the footsteps of other businessmen, the possibility of failure is very less which is just opposite in the case of the entrepreneur.
- A businessman uses traditional methods to run the business. Conversely, an entrepreneur applies unconventional methods for the same.
- A businessman is oriented towards profit, however, an entrepreneur is a people focused in essence, he gives more importance to its employees, customers, and the public.
- The businessman faces extreme competition because it is very difficult to gain a competitive position in an already existing market, which is not in the case of an entrepreneur.
Conclusion
A businessman is a businessman, but an entrepreneur is an entrepreneur, an organizer, a risk taker, a manager at the same time. The former focuses on competition, but the latter gives emphasis on coordination and cooperation of all the resources.
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Luz S. Templonuevo says
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More power and keep up the good work! Please keep on sharing what you know and what you have. May God bless you with more wisdom, knowledge, opportunities and in all areas
of your lives.
Surbhi S says
Thank you for all your blessings and appreciation. 🙂
jikmat says
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Nkeiruka Prosper Kanu says
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More grace.
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KENNEDY E. says
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Aruj Budhraja says
Thank You Very Much for the amazing article!
I am still figuring out to become an Entrepreneur or a Businessman.
Mirzahakeem says
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hoyhouy says
very clear definition, thanks for sharing.
Maribel Ballon says
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hawkins says
great explanation
Surbhi S says
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Sunil Kumar says
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Usama says
Is Mark zuckerburk co founder of Facebook????
Surbhi S says
Yes
Samuel Ayankoso says
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Thivanka says
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Rana says
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OLLO PAULINUS says
A very rich and clear explanations about these two key words
Ola Balogun says
It’s my first time to ever know there was a difference between the two. I feel schooled now properly and realise there are many things that I do not know. Thank you for making this possible. Much appreciated
Bunny Balintong says
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samuel says
wao, nice explanation
Kenneth Choo says
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Ayanda says
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Chi Naomi says
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R.K. gUpta says
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Abdulkhazal says
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Coster Katwishi says
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Michael Azarris says
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BIKO says
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Hanna Tamang says
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Sankey bansal says
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Jay says
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Hollamyde says
Big thanks to you, you really cleared the air.
tayyab says
Thanks for information
Daisy says
Wow.
Extremely informative and helpful. I want to take this time to thank you for providing us with this opportunity and making it easier to understand business and it’s variants .
Rev Augustine says
GREAT EXPOSITION ON THE CONCEPTS OF ENTREPRENEUR AND BUSINESSMAN,
I’M CURRENTLY A STUDENT IN AN ENTREPRENEURERSHIP CLASSES AND IT HAS BEEN HELPFUL, MOST GRATEFUL FOR INSIGHTS
WHAT ARE YOUR THOUGHTS ON ENTREPRENEURERSHIP AS A PROFESSION?
GOD BLESS YOU, SHALOM 🙏
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