Is there a difference between entrepreneur and businessman? For most people, these terms are synonymous; thus, used interchangeably.
However, each word refers to a different person with individual takes regarding business concepts and approaches.
With our current situation, more people want to venture into small businesses without investing too much capital.
- Are All Businessmen Entrepreneurs?
- Difference Between Entrepreneur and Businessman
- The $100 Startup
- What Is a Microbusiness?
- Other Business Types
- About Blinklist
- What Are the Similarities Between Businessman and Entrepreneur?
Are All Businessmen Entrepreneurs?
As it is, there’s a fine line between entrepreneur and businessman difference.
Still, one will notice their contrasting characteristics if we try to understand and evaluate each term’s definition.
Not all businessmen are entrepreneurs because they are focused on different aspects of their projects.
Let’s define each one, so we’ll better understand the difference between entrepreneur vs businessman.
What Is an Entrepreneur?
An entrepreneur formulates exceptional business concepts or ideas and acts upon them. They take risks and endure the uncertainties of establishing a new business.
They try to introduce changes and variations creatively while organizing ways and means to bring them to fruition.
Entrepreneurs also develop a market for their projects if there’s no existing one yet with hopes of making a significant change for the people.
What Is a Businessman?
A businessman typically enters a proven and tested venture for profit than any other reason. He’s not concerned whether or not it’s an original concept.
Therefore, there’s a lower chance of failure even if he encounters plenty of competition and rivals in his chosen market.
Businesspeople will hire individuals for every department of the business to keep it functioning and generate revenue.
Difference Between Entrepreneur and Businessman
We have established that there’s a difference between businessman vs entrepreneur. Let’s see how many differences we can identify.
A businessman tends to view customers as the revenue source and the reason why the business is surviving.
On the other hand, entrepreneurs feel the need to maintain a lasting relationship with their customers and think of different ways to serve them to keep them satisfied.
A businessman has a high level of competition with other businesspeople undertaking the same venture.
Hence, the mindset that every day is a contest that they need to battle and win.
An entrepreneur tries to study and learn from their competitors, trying to understand how they handle it.
A businessperson hires people to work for their company as they compensate them for their hard work and maintain a worker-owner relationship.
Entrepreneurs are more friendly towards their workers, talking to them with respect and encourages them to do better.
We can consider concepts and ideas as the most significant entrepreneur and businessman difference.
Entrepreneurs have plenty of fresh ideas to create a product that may solve some of society’s problems while also making a profit out of it.
They devote extra effort, money, and time to develop and improve their original idea and introduce it to the market as soon as possible.
On the contrary, a businessperson typically invests in a lucrative business to be sure of their profit regardless of how much competition they may encounter.
Every businessperson fears losing their money, so they decisions with caution, ensuring that their investment will not go to waste before venturing into anything.
They typically use the traditional way of handling a business to ensure that they will not fail in their venture.
As we have mentioned, entrepreneurs are risk-takers, even with finances, believing that they will not gain anything if they don’t take the risk.
They are more focused on launching their products and ideas as they try to create a new following for their new concept.
The former takes more risks between entrepreneur vs businessman than the latter since they’re introducing a new product to the market.
An entrepreneur is more daring and passionate about venturing into the unknown without fear of losing what they had worked for just to fulfill their passion.
Fortunately, this courageous undertaker succeeds most of the time because they do everything with determination and eagerness.
A businessman also takes a chance but only after meticulous planning to ensure that they don’t lose their investment.
Time is essential to a person in the business. They always follow a strict schedule and make sure that everything goes according to what they have planned.
An entrepreneur is more of an artist and a creator. They take their time when doing their project to ensure that the outcome is excellent.
A businessperson measures success based on their fame and financial gain. The more people know about their brand, the bigger their profit should be.
An entrepreneur does not measure success through monetary standards. They feel successful when people benefit from their work.
A businessman sees an opportunity in areas where there is revenue. They feel the need to invest in something that generates financial success.
Entrepreneurs grab the opportunity to bring their ideas to life when there are problems that require a solution.
There are also noticeable work style differences between businessman vs entrepreneur when handling their business.
A businessman gets into the venture once he sees an opportunity, even if he doesn’t enjoy it as long as he makes money. He is more concerned about fame and fortune.
On the other hand, entrepreneurs only work on things that they love and enjoy hoping that they are doing something good for society and the world.
Initially, they would get into business to give way to their passion before focusing on its monetary aspect.
The $100 Startup
Have you decided yet which category you belong to? Are you more of a businessman, or do you belong to the creative lot?
The $100 Startup written by Chris Guillebeau is the perfect guide for people who want to venture into a business for the first time.
To be more precise, the author will teach you how to start a micro business even with only a $100 capital.
In the book, he explained why it’s essential to combine passion and eagerness to gain financial stability to succeed.
Aside from tips and advice about the right products, he also provided the necessary tools that you need to succeed in your venture.
What Is a Microbusiness?
The $100 Startup talks about starting a microbusiness. What is a microbusiness? It’s a standard type of business in the USA with nine or fewer employees.
As of 2016, 75% of microbusiness employers in the USA came from the private sector, providing more than ten percent of Americans’ jobs.
One microbusiness type is a sole proprietorship venture because it does not have any employees.
A microbusiness is the smallest type of venture mostly found in construction, health care, retail, and social assistance.
Other Business Types
All types of services or goods paid for by an individual fall into a business category. It can be commercial, industrial, or professional.
Let’s have a sneak peek at the business types we deal with every day.
As mentioned earlier, it’s another type of microbusiness where the owner also acts as the employee who runs the business.
As the name implies, there are two people sharing everything in this business type. They equally divide everything from the responsibility to the profit.
Limited Liability Company (LLC)
An LLC allows you to enjoy the perks of partnership and corporation business types while protecting you from personal liabilities in case of lawsuits or bankruptcy.
There’s a distinct separation of responsibilities in a corporation. The founders or owners are different from the board of directors who manage the actual business.
Under the board of directors, the company is responsible for managing the business’ assets and debts.
A group of entities or individuals typically owns the cooperative equally owning part of the company.
All the members of the cooperative can use the available services and products provided by the company.
Blinklist is a book summary platform based in Germany and founded in 2012. It offers a plethora of information for different categories.
You can read and ponder on a book summary in as short as 10 minutes, including an audio version if you prefer to listen instead.
These summaries will allow you to understand numerous non-fiction books’ gist and stay updated with all the latest information about other topics.
Blinkist offers a seven-day free trial so that you can test the waters first. You will receive a notification before your free trial ends.
You can opt to stop the subscription if the platform doesn’t fit your lifestyle. For those who want to subscribe, you can choose a monthly or annual subscription to get access to thousands of books online.
What Are the Similarities Between Businessman and Entrepreneur?
We have discussed the difference between entrepreneur and businessman and understood each one’s way of thinking.
A businessman focuses more on winning and profit, whereas an entrepreneur concentrates on cooperation and coordination.
An entrepreneur knows the benefits of teamwork. They understand that working together as a team leads to a successful endeavor.
As stated in The $100 Startup book, a successful business requires passion, dedication, skills, and marketing strategies.