Difference Between an Entrepreneur and Businessman

Who is a Businessman?

A businessman is someone who does business with already existing strategies and ideas. They implement proven methods in a business to generate profit and success. A businessman focuses on expanding the business with established tactics rather than following a creative idea. For those interested in a structured career path, pursuing a career as a business manager or working as a businessman enables one to enhance experience and knowledge, leading to career advancement.

Key characteristics of a businessman:

• Follows proven business strategies

• Takes only required risks

• Works for existing markets

• Leadership skills

Who is an Entrepreneur?

An entrepreneur introduces an innovative idea, develops a suitable business strategy, and takes the required risks to establish a new business. They are more motivated by creativity and original ideas than by working with already existing business strategies. If you are aiming to pursue this path, learning how to become an Entrepreneur and taking Entrepreneurship Courses to develop key skills to succeed is highly beneficial.

Essential Entrepreneurial Skills:

• Innovative and creative

• Takes high risks

• Creates new market opportunities

Key Differences Between a Businessman and an Entrepreneur

There are several key areas where the distinction between an entrepreneur and a businessman exists. They differ highly from each other in mindset, approach and risk-taking. Both play an important role in the economy, but their goals and approaches vary significantly. Below, we discuss the major differences between these two, helping you understand the difference between an entrepreneur and a businessperson clearly.

1. Innovation and Originality

The most evident difference between a businessman and an entrepreneur is innovation.

• A businessman usually works with familiar ideas and already existing products, services, or business models. Their primary focus is expanding the business in the existing market, which earns maximum profits. They have to thrive in a market with high competition, as there are many similar business models available on the market.

• An entrepreneur, on the other hand, works on new ideas for a new venture that is called a start-up. They highly focus on problem-solving by understanding the gaps in the market and creating innovative solutions.

2. Risk-Taking Ability

Risk-taking is an integral part of business, but the level of risk taken by a Businessman and an Entrepreneur is highly different. This is another area where the difference between the entrepreneur and businessman is present.

• A businessman is only willing to take calculated risks to reduce any potential consequences that could harm the growth of their business. They follow successful business models and work according to the standards of the industry.

• Taking risks and dealing with the following uncertainty is a huge aspect of entrepreneurship. They take up new ideas and execute, which could succeed or fail. This risk-taking ability differentiates an entrepreneur from a businessman.

3. Decision-Making Style

The decision-making style of both businessmen and entrepreneurs is based on different things. Since their approach varies, they prioritise different factors while making a decision. Hence, this contributes to the difference between a businessman and an entrepreneur.

• The decision-making of a businessman is highly based on previous experience, market research, and budget.

• Instead, the entrepreneur bases their decision on creativity, intuition and innovation.

4. Adaptability and Growth

The ability to adapt also creates the difference between a businessman and an entrepreneur. This can directly influence growth capacity.

• A businessman mainly focuses on how to grow their business and earn profit with fewer uncertainties and disruptions.

• However, an entrepreneur is flexible and willingly adapts to new technologies and trends.

5. Market Approach

Their approach to the market leads to the difference between a businessman and an entrepreneur. A businessman goes for the traditional approach while an entrepreneur challenges the conventions.

• Businessmen are market players and strategically incorporate proven business models to achieve success.

• Entrepreneurs are market creators by identifying gaps and introducing innovations.

Conclusion

While a businessman and an entrepreneur are terms that are similar, in their approach to business, goals, and mindsets set them apart. Understanding the difference between an entrepreneur and a businessman can enable an individual to choose whether to engage in a traditional business model or introduce innovative ideas to the market.

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