What is the difference between entrepreneur and business person?

Entrepreneurs generally enter the niche market with the objective of developing it. Businessmen
enter the developing or developed market just to extract profit out of it. They are highly aware of
the conditions prevailing in the market, so they take lesser risks compared to entrepreneurs.
Entrepreneurs on the other hand are totally unaware of the place they will be operating in, thus
they take greater risks, or take greater time studying, understanding and assimilating the market.

On the other hand Entrepreneurship is the ability to convert any given item into resources.

A businessman cares more in making money; an entrepreneur cares in a larger perspective,

including humanitarian community and social responsibility. A businessman is nearsighted; focuses
mainly on a monthly sale. An entrepreneur is visionary; stresses on research and development. A
businessman trades to trade; an entrepreneur builds to trade. A businessman considers employees
as costs; an entrepreneur treats them as assets. A businessman strategizes on exploitation; an
entrepreneur believes in human resource development. A businessman turns himself into a selfish
rich man; an entrepreneur brings wealth to the society at the same time.

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.

In the long run, an entrepreneur becomes a business, 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.

COMPARISON OF BUSINESSMAN AND ENTREPRENEUR

Basis for comparison Businessman Entrepreneur

Meaning A businessman is An entrepreneur is a

someone who sets up a
business with an existing
idea offering products
and services to the
customers
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 Creates new market
markets

Risk factor Less Comparatively high

Approach Holistic Atomistic

Methods applied for Conventional Unconventional

doing things

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

1. 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.

2. A businessman makes his place in the market with his efforts and
dedication, whereas an entrepreneur creates the market for his own business.

3. The businessman is a market player while Entrepreneur is a market leader

because he is the first to start such a kind of enterprise.

4. The nature of a businessman is calculative, but an entrepreneur is intuitive.

5. 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.

6. A businessman uses traditional methods to run the business. Conversely,

an entrepreneur applies unconventional methods for the same.

7. 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.

8. 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.

THE BUSINESSMAN:

When he sets up a business he prefers to use highly valuable ideas or ideas

which are strongly demanded by the market. This means his journey is predictable
and it follows a clear and definite path.
The risks he takes every day are pretty low as he plays on a well-known ground.
Nonetheless, exactly because of this, he has to make his way through the
competitors on a daily basis. That's the price to be paid for positioning his business
in a crowded market.
His travel companions are the employees, used for the sake of making more
profit.
His goal is to grow a business, no matter what.
He treats his customers as a source of sales and revenues.
His daily challenge is to survive the markets and be the winner against all the
competitors.
THE ENTREPRENEUR:

When starting a business he goes for the off-the-beaten-track route. His journey
will drive him through winding roads.There will definitely be many ups and downs
before reaching the top of the mountains.
Risk is his daily bread. He deeply believes in his innovative idea and he is willing
to do everything in his power to carry it on.
He's not alone in this journey. He treats his employees like friends and they will
grow all together with the business.
His goal is to establish his solution on the markets to make the world a better
place.
He sees his customers as the fuel of his business.
His daily challenge is to constantly improve his company and the solution he
provides, working in cooperation with his employees.
So... These are the main differences between a businessman and an entrepreneur.

The difference between Business and Entrepreneurship

It can be quite difficult to clearly explain the difference between a business and an entrepreneurial
attitude, but, as this is something I have been reflecting on a lot recently, I would like to share my
draft outcome with you.
In my opinion what distinguishes a Businessman from an Entrepreneur is the mental model (way of
thinking): a Businessman is more an Analytical Thinker while an Entrepreneur is more a Possibility
Thinkers.

This means that, for example, a Business man main focus is not on innovation, but more on making
sure a company is making profit. Entrepreneurship on the contrary focus on generating new value,
and this value could be social, emotional, aesthetic and/or financial.

I will write another post on the concept of value as it is a quite complex topic. What counts for now is
that Value for an entrepreneur is not necessarily profit, but can also be something less tangible but
considered more rewarding for the person running a business.

Also, whilst a Businessman focus more on small improvements of an existing situation, an

Entrepreneur tries to imagine how things may be in the future and work toward making that idea a
reality (this attitude, by pushing the boundaries of what we know, entail higher risks but also higher
rewards when successful).

To simplify, the main focus for a Businessman is:

Administration of business

Search for truth, Short-term

Logical, Linear, Utility, Incremental

Features

Facts, Verbal, Measure

Minimal Risks, Predictable

Smaller Rewards

Profit

While, on the contrary, the main focus for an Entrepreneur is:

Invention of business

Search for what is interesting, intuitive, long-term

Holistic, Significance, Meaning, Leap forward

Benefits

Emotion, Visual Thinking

 Risk, Uncertainty,

Potentially High Rewards

Value