Difference between Entrepreneur and Businessman.

Businessman Vs. Entrepreneur

 Unique Ideas

·      A businessman starts a business on a traditional or old concept. His main aim is to earn maximum profit, so he chooses business ideas accordingly.

·     An entrepreneur is a person who introduces unique and innovative ideas. His ideas are not traditional but more focused to solve the problem of society.

  Risk Involved

·    A businessman takes calculated risk because he has fear to lose his wealth. He knows the amount of investment, targeted customers, and the cost of doing business.

·   An entrepreneur is a risk-taker and always willing to assume losses that may arise due to the execution of innovative ideas and projects into reality.     

 Objective

·    A businessman operates a business purely for the profit motive in order to achieve his financial goals.

·     The aim of an entrepreneur is to earn profit but he is more focused to change the world by providing unique solutions for the problems.

 Competition

·    A businessman faces higher competition in the market, because of existing products. He needs to try harder to beat his competitors and to maintain his existence in the market.

·      An entrepreneur either faces no competition or very low competition due to the invention of his own unique product.               

Customer Relationship

·  A businessman generally considers his customers as the ultimate source of revenue. For a businessman, the customers are the essence of the business, without which income generation is not possible.

·   An entrepreneur always gives value to his customers and maintain the pleasant relationship. He knows what his customers want and then provides the solution accordingly. He does so by listening, communicating, and involving his customers.

Time and Management Skills.

·     A businessman acts fast. He targets to maximize the gain from all those things which are within his reach. He is very much concerned about the day-to-day operations of the business, so he actively participates in it.

·   An entrepreneur has his own mission and vision which is why he has insight into the future. His efforts are focused not to achieve short-term goals but to attain long-term goals. He effectively utilizes his time and management skills to reach his long-term goals. 

7.      Success Rate

·    A businessman has a higher success rate, because he introduces existing products or services in the market. He has detailed knowledge about the business operations, operating costs, and profit margin.

·    An entrepreneur has a very low success rate, because he introduces unique product or service in the market, so it depends upon the market responses and acceptability. 

8.      Profitability

·      A businessman earns a very low profit due to the higher competition and division of market share.

·       An entrepreneur’s profitability is higher, due to innovative products and greater market share. 

       Conclusion

    On the basis of the above difference, it should not perceive that entrepreneur is superior to a businessman. Both are responsible for the economic growth and development of a country. Yes, an entrepreneur acts as a catalyst for the growth of a country. A businessman also plays a vital role to create employment opportunities within the country and contribute to the GDP. Both businessman and entrepreneur have their market standing but it is the need of time to develop an entrepreneurial culture in educational institutions rather than focusing on traditional approaches.