Businessmen and Entrepreneurs are the terms with which people often get confused. They both are generally assumed as the same but there are many differences between businessmen and entrepreneurs. We must understand this difference before starting a new venture to get the clarity that what we want to become – an entrepreneur or a businessman. Before moving further to understand the differences, let’s define both the terms in simple words.
Definition of Businessman and Entrepreneur
A businessman is a person who focuses on running a business with an old existing business idea.
An entrepreneur is a person who focuses on the new exclusive idea that can change the world.
7 major Differences between Businessman and Entrepreneur
- Market State
Businessman works on the existing ideas in the market knowing the needs of that particular business. He chooses the business that is in increased demand and has higher profit prospects. He works on an already existing set system and tries his luck in the market. Thus businessman is called a Market Player.
An entrepreneur works on original ideas and has a complete hold on market. He creates his marketplace with his specific path and fresh ideas. He leads the market with his new idea. Thus entrepreneur is called a Market Leader.
Businessmen focus on making a profit rather than updating the product. As they work on the existing idea, innovation is mostly ignored by the businessman. They don’t prefer to miss any opportunity of gaining profit. Their major policies revolve around profit and loss.
Entrepreneurs, on the other hand, work for passion rather than making a profit. They focus on implementing new ideas in the market irrespective of profit or loss. They are more inclined towards problem-solving and gaining the trust of customers and employees.
Businessmen work on already established market and product, thus face tough competition with their challengers. As many businesses work for gaining profit on the same idea, it creates competition for every businessman associated with that idea. They compete for their survival in the market.
Entrepreneurs launch new concept which is very uncommon in the market. It gives them zero or very little competition and higher chances of sustainability in the market.
Businessmen follow the age-old tradition and policies of running a business. They keep themself restricted towards new technology or innovation. Their procedures for business and getting success are the ordinary ones that all other competitors also follow. It holds them from standing apart in the market.
Entrepreneurs, in contrast, bring new traditions and technologies to run a business. Being creative and innovative, they give unconventional procedures of running a business to the world. These procedures make them stand out in the market.
As the market is already flooded with other competitors working on the same idea, businessmen need to take place in the market. Their sustainability and growth in business depend on it. If they fail to take place in the market, their aim of gaining profit gets affected and it eventually affects the survival.
Entrepreneurs being innovators and trend-setters create their market. They bring new ideas of business which opens the door of new markets for them. Thus, we can say that entrepreneurs create their market.
- Work Style
Businessmen work for the money and fame and not for the passion or desire to do something different. They may or may not enjoy their work.
Entrepreneurs work for their passion and not for profit. They work nobly to give the world a new structure. They enjoy work and always prioritise the world first. They work passionately and selflessly to give something better to the world.
Businessmen know the market and its trends better so they take the pre-planned risk. They keep themselves safe from market hazards and always take calculated steps keeping profit and loss in mind.
Entrepreneurs are always risk-takers and do not work for a profit. They work enthusiastically on their idea and dream without thinking about profit and loss. Therefore entrepreneurs always remain in the risk zone.
To conclude, we can say that businessmen and entrepreneurs both have their positives and limitations but the best part is that they both work for the market. In today’s era both are equally important as we need them both to run the business world and society.