Explore the top nine differences between a businessman and an entrepreneur. Read our blog, "Businessman vs entrepreneur" and enhance your understanding of both roles to succeed.
Understanding the roles and approaches of a businessman vs entrepreneur is vital for you to make your mark in the world of entrepreneurship.
Do you think "businessman" and "entrepreneur" mean the same thing? Typically, people use these terms interchangeably, but there are important differences. A businessman usually follows a path set by someone else with an established mission and goals, while an entrepreneur likes to create their own path with new and innovative ideas.
To break it down simply, a businessman runs an established business, while an entrepreneur starts a new business with an original and creative product or idea. However, the entrepreneur might turn into a businessman in time, as the business matures and becomes established. The key difference is that an entrepreneur thinks of a new and special idea, while a businessman operates in an already existing structure and market.
In this blog, we will look at the difference between a businessman and an entrepreneur in detail, but first things first.
A businessman is someone who starts, takes over or simply runs a business with an already tried and tested idea or product which has been proven to be more or less successful. They’ll often choose to operate in an already popular or profitable field, tending to value slow and steady growth over several years.
More often than not, the business will face tough competition from many other companies in the market, which already have similar businesses. However, the risk of failure is relatively low because the business concept has been tried and proven in the past. The main goal of a businessman in conducting business activities is to make money by using their knowledge and financial resources. Therefore, it’s vital that a business values its customers. “The customer is King” is a phrase often heard in the commercial world.
Characteristics of a businessman |
|
As a businessman, you should:
|
|
|
|
|
|
|
|
|
|
|
An entrepreneur is an individual with the aspiration to start something new and make a difference. They're innovative, creative and willing to take risks, facing uncertain situations in business. Entrepreneurs begin new ventures, often called startups.
Entrepreneurs are recognised for their creativity. Entrepreneurs organise resources and introduce new ideas. The services and products they provide can bring about a significant change in the world. They play a key role in business and manage various aspects of operations, like land, labour and capital.
Characteristics of an entrepreneur |
As an entrepreneur, you should:
|
|
|
|
|
Now that we know the definitions and characteristics of businessmen and entrepreneurs, let’s look at some of the similarities they share. Then we’ll look at the difference between a businessman and an entrepreneur.
Businessmen and entrepreneurs both share a strong passion for their work. They aim to create positive change in their environment by generating employment opportunities for locals and contributing to communities through social responsibility programmes. They both have a strong desire to engage with customers and hold a strong vision for the future of their businesses, taking responsibility for their own achievements.
Businessmen and entrepreneurs often work long hours and it's important for both to be good at promoting themselves and their ideas and to be able to handle risk. If they can't do this well, their businesses might not succeed. Typically, they begin with small business ideas that need to be nurtured to grow successfully.
People in both categories usually possess great leadership skills. Businessmen and entrepreneurs work very hard, with a strong focus on their goals and they need to be good at interacting with others to be successful. They also need to have the ability to handle rejection, failure and stress.
Businessmen and entrepreneurs must be skilled at planning to achieve success. They are constantly looking for chances to expand and need effective networking skills. With some exceptions, they are usually self-employed. Whether running their own business or working in a corporate job, persistence and great communication skills are crucial for both to succeed.
Similarities between a businessman and an entrepreneur |
|
Both businessmen and entrepreneurs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entrepreneurs work hard to ensure their innovations succeed. They focus on utilising the specific skills and talents of their staff, to come up with new and effective ways to thrive. By implementing HR strategies that streamline attendance, leave management, payroll and other administrative tasks, business owners can optimise their human resources.
On the other hand, businesses are often initiated or managed by individuals with more traditional business ideas. They often select industries with a high demand for products or lucrative returns. However, they face tough competition as many companies in the market already have similar business models. The risk involved is usually manageable since the operating model has already been tested.
Let us look below at the difference between a businessman and an entrepreneur:
Businessman vs entrepreneur |
||
. |
Entrepreneur |
Businessman |
1. Businessman vs entrepreneur: Definition |
Someone with a unique idea starting a new venture. |
Someone starting a business with a tried and tested idea. |
2. Businessman vs entrepreneur: Market position |
Entrepreneurs are market leaders. |
Businessmen are market players. |
3. Businessman vs entrepreneur: Market |
Entrepreneurs create a market for their ideas. |
Businessmen enter an existing market. |
4. Businessman vs entrepreneur: Nature |
Intuitive |
Calculative. |
5. Businessman vs entrepreneur: Risk factor |
High risk of failure. |
Lower risk of failure. |
6. Businessman vs entrepreneur: Method of operation |
Uses unconventional methods in business. |
Uses traditional methods in business. |
7. Businessman vs entrepreneur: Focus |
Most likely to be customer, employee and public-focused. |
Most likely to be profit-oriented. |
8. Businessman vs entrepreneur: Goals |
Visionary with long-term goals. |
Pragmatic with short-term profit-centred goals. |
9. Businessman vs entrepreneur: Goals |
Low competition in a new market. |
High competition in an existing market. |
The key difference between a businessman and an entrepreneur is that an entrepreneur is someone who starts a new venture with a unique idea, creating the market from scratch and operating with an intuitive approach. This path involves a high risk of failure but comes with the potential for great success.
Entrepreneurs focus on the customer, employees and the public, prioritising long-term visionary goals. On the other hand, a businessman typically initiates a business with an established idea in an existing market, operating in a more cautious and calculated manner with a lower tolerance for risk. They are profit-oriented, concentrating on short-term financial goals amidst high competition within their industry.
Do you understand the difference between a businessman and an entrepreneur now? Understanding this, you're less likely to use the terms interchangeably.
GBS is a leading educational institution known for its industry-specific courses encompassing finance, accounting, healthcare, business, construction and other sectors. With a significant presence in major cities across the UK, the institution is deeply committed to its mission of "changing lives through education".
Entrepreneurship courses offered by GBS:
BA (Hons) Global Business and Entrepreneurship with Foundation Year
BA (Hons) Business and Enterprise with Foundation Year
The fundamental difference between a businessman and an entrepreneur is that a businessman primarily manages and operates an established business, often using traditional methods, while an entrepreneur focuses on innovation, creating new ventures and taking risks to drive change.
The similarities between a businessman and an entrepreneur are that both are skilled in decision-making, exhibit good leadership skills and plan for the future. Both need effective time management, planning, setting priorities, monitoring plans and clear communication.
No, not every entrepreneur is a CEO. While some entrepreneurs may become the CEOs of their ventures, the roles of an entrepreneur and a CEO are distinct. An entrepreneur is the initiator and innovator behind a business idea, while a CEO is typically responsible for overseeing the operations and management of the company.
An individual who operates a chain of well-established retail stores, focusing on steady growth and profit can serve as an example of a businessman. Bill Gates, Steve Jobs, Mark Zuckerberg, Pierre Omidyar, Arianna Huffington and Caterina Fake are well-known figures who are either businessmen or entrepreneurs, often associated with founding or leading companies.
Yes, you can transition between being a businessman and an entrepreneur based on your experiences, interests and opportunities. A successful entrepreneur may choose to adopt a more traditional business approach and a businessman may venture into entrepreneurship, given the right circumstances. Now you understand what is involved and the challenges ahead! So, if you feel ready to start your entrepreneurial journey, contact us now.
Choose from a wide range of vocational, foundation, undergraduate and postgraduate courses in Finance, Business Management, Healthcare, Tourism and more…