Участник:BobbyScott538
Seven Top Differences Between Entrepreneurs and Businessmen
Entrepreneurs and businessmen are most of the time interchangeably used. I too have been guilty of using one or even the another sometimes. However, I feel that there is a factor between the way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is all about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a well known path and takes lesser risk than a business owner.Let's explore some of the points where entrepreneurship is different from running the company.
Entrepreneur have been in the company of making new things The purpose of business is to recycle the products. Hence clients are a lot more like trading. By trading I am talking about purchasing goods from one place and selling at the other. This may also involve manufacturing at some step however the fundamental principal continues to be same. Entrepreneurs create something new. They identify an issue and work to create innovative solutions that help reduce or eliminate problems. Even if they are doing trading, they'll apply innovative methods to it. Let me provide you with an example. If the owner of retail chain is adding internet sales among his channel, he is just being a businessman trying to find new methods for getting more business. If however he goes an creates a cutting-edge product which never existed before, he is being an entrepreneur. Here, he's taken the risk upon himself. Entrepreneur's "Business" is exclusive An entrepreneur won't operate in areas where there's already a crowd. He'll use his scarce money to explore new. He'll for instance, go for new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing strategies( viral marketing) etc. He side steps the marketplace that is too competitive and works inside a niche area. Entrepreneur puts their own money first Since people are not convinced of his ideas, entrepreneur needs to put his money on the line first. He needs to reveal that a market exists for the products he's creating. Then only he is able to get external finance. This is in contrast to a normal business, where it is known that market exists and hence investors tend to be more prepared to purchase such businesses Entrepreneurs working with new innovative products convey more breakout chances If the potential risks are high, so are the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns around the capital it invests. The surety of making money in regular clients are more than that of entrepreneurship though. Entrepreneurs experience more uncertainty than regular businesses Entrepreneurship is certainly more riskier and uncertain than conducting an ordinary business. An entrepreneur faces the question almost daily about success of his product, cost of developing the merchandise, customer's adoption, team motivation and anything else. There is uncertainty and un-evenness of sales. A regular business however has pretty much regular sales and is less uncertain than an entrepreneurial venture Entrepreneurs share businesses with team Entrepreneurs develop vision and they canrrrt do it alone. So a business owner constantly must remind his team and himself by what they're creating and why it'll work. An Entrepreneur has to look for brand new ways to motivate the workers. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same through the lifetime from the business Entrepreneurs share the success with the team Entrepreneurs don't have much cash to provide. Hence they offer equity for their employees. Once the venture works everyone that has a shares becomes rich. One of the prime example is Infosys technologies in Bangalore. It has created a lot of millionaires just by distributing equities towards the founders and employees of the company. A business on the other hand is less open to sharing equity with employees and would pay higher salaries to compensate for it.
I nowhere say that businesses can't be entrepreneurial or vice versa but that there's a significant differences between your way a entrepreneurial venture and a business works. A company however may become entrepreneur by doing something innovative while entrepreneur can help to eliminate the uncertainty when you are more like a company.
