An entrepreneur is someone who locates the need of society and tries to meet the same, with his/her innovative idea. On the other hand, ‘entrepreneurship’ which refers to the process of establishing a business entity, intending to get profit, as a return in the future.
You might have heard the names like Bill Gates, Jeff Bezos, Steve Jobs, Mark Zuckerberg, Larry Page, Jack Ma and many more, for their innovative and unique products given by them to the society. They are not businessmen, rather they are entrepreneurs as they have established a business, to offer an innovative product and took the risk in the hope of getting profit, as a return in future.
In this article, you will get to know the differences between entrepreneur and entrepreneurship, in an elaborated way.
Content: Entrepreneur Vs Entrepreneurship
|Basis for Comparison||Entrepreneur||Entrepreneurship|
|Meaning||An entrepreneur is an individual or a team thereof, having an innovative idea, and takes every step to turn the idea into reality, while bearing the risks.||Entrepreneurship is a risky activity of commencing a business usually a start up company, offering distinct products and services to the target customers, which may or may not get success.|
|What is it?||Person who has an idea and gives shape to it.||Process which gives shape to the idea.|
|Represents||An innovator, who chased the dream, till it becomes true.||A procedure through which an innovation is done.|
|Business Venture||He/She is the one who sets up the business venture, to turn a concept into reality.||It is the activity, which an entrepreneur undertakes to set up the business venture.|
Definition of Entrepreneur
Entrepreneur refers to a person who conceives a creative idea and takes all the necessary steps required to convert the idea into reality, such as taking initiative to sets up a new business enterprise by supplying sufficient capital, land, labour and all the essential resources to produce the product, he/she has in his/her mind and bearing all risks so as to gain profits in future. The qualities of an entrepreneur are:
The company formed by an entrepreneur is usually a startup enterprise, which can be understood as the live manifestation of his/her idea. So, an entrepreneur is:
- A beginner in the market, who has something new to offer to society and starts right from scratch to establish and run the enterprise.
- An innovator, who has a thought-provoking idea or concept in his/her mind, that has the capability to lead the marketplace.
- A developer, who develops a business model, to give shape to the idea.
- A leader, who provides guidance and support to his/her men, to work in a specific direction or change the same (if required) so as to achieve the target.
- An incharge who is accountable and responsible for the success or failure of the venture, for the decisions made by him/her.
- A promoter, who takes all the relevant steps to turn the dream into reality.
- A forecaster, who foresees, future opportunities and threats which can affect the venture, positively or negatively.
- A risk-taker, who has the ability to anticipate the risk in the future moves, and take the risk, if they are beneficial to the enterprise.
Definition of Entrepreneurship
Entrepreneurship is the process or activity, of initiating, developing, managing and operating a startup company, while taking all the risks involved, so as to make profits. It is one of the four factors of production, the other being land, labour, capital. Now, we have discussed the entrepreneurial process as under:
Characteristics of Entrepreneurship
- Process: Entrepreneurship is a systematic, purposeful, creative and continuous process, which an entrepreneur undertakes to run the business smoothly.
- Innovation: Innovation is the key feature of the entrepreneurship, which creates a difference in the market place. Indeed, it helps the enterprise to introduce the product quickly, as there is hardly any company which is selling the product in the market.
- Development of network: Developing strong connections with the parties such as suppliers, distributors, banks, debtors, creditors and many more, which are directly or indirectly related with the business process, to have a good worth, in the market.
- Profit potential: Profit is something, that keeps the organization going, in fact, it acts as a motivation for the entrepreneur, to do better than before. So, before taking any decision regarding the enterprise, priority is given to the profit potential, i.e. while taking any step further, the entrepreneur identifies whether it is profitable or not.
- Forecasting of Market Trends and future possibilities: The entrepreneur has to keep a close watch on the market trends and future demands so that the enterprise could continuously work to improve the products or services offered, and grow further.
- Risk Assumption: You might have heard the famous saying “no risk, no gain”, which means that the profit of business depends on the risk factor. So, risks and rewards are inherent to the enterprise; in fact, there is hardly any business which survives without taking any risks.
Key Differences Between Entrepreneur and Entrepreneurship
The difference between entrepreneur and entrepreneurship are discussed in the points given below:
- An entrepreneur is a person, or a team of individuals, having a vision, which not just generates money, but can also ease the way in which things are done, by providing such products and services that has value to the customer, while taking all the risks, which comes in the way. Conversely, entrepreneurship is an art of turning an idea into reality, which is not only about arranging the resources to give shape to the idea but constantly making efforts in that direction, to earn profit in future and bearing all the risks or rewards.
- An entrepreneur is just a person having a unique and practical idea in his/her mind. As against, entrepreneurship is the process of starting and running a business of providing creative products and services.
- An entrepreneur is an innovator, as he/she conceives an innovative idea, which is not yet introduced by anyone else in the market. On the contrary, entrepreneurship is the way through which one can make innovations.
- An entrepreneur establishes the business venture, in order to convert the idea, into a product or service, which can help many by easing the way work is performed previously. In contrast, entrepreneurship is all about undertaking the business and bearing all the risks that come in the way, to give a proper shape to the entrepreneur’s vision.
With the above discussion, it might be clear that that entrepreneur is just a person with a billion dollar idea, who has the ability and willingness to give shape to that idea, by going through the entrepreneurship process. An entrepreneur is known for their decisions, which decides the destiny of the enterprise.