Difference Between Entrepreneur and Businessman

An entrepreneur’s purpose is to create a unique concept in the market. The purpose of a businessman is to optimise revenue. But there is more to know when it comes to identifying the difference between entrepreneur and businessman.

The primary difference between entrepreneur and businessman is that the entrepreneur comes with an original idea for a product or service. In contrast, the businessman is focused on operating a business to earn revenue without any original idea. Let’s find out more about how entrepreneurs and businessmen are different. 

Difference Between Entrepreneur and Businessman 

Here are the top parameters that show the difference between entrepreneur and businessman.

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Who is an Entrepreneur?

An entrepreneur can be deemed a visionary in the market who conceptualises a product or service that can potentially boost the economy and society’s well-being. The functions of an entrepreneur include identifying possibilities, assembling resources, and fostering innovation to meet market demands with effective solutions.

Entrepreneurship involves setting up a business venture with investors and partnerships. Entrepreneurs are also aware of the high risks in setting up ventures, as there is no return guarantee. But this challenge can be equally rewarding, as the competition is usually low in a niche. 

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Also read: Difference between Entrepreneur and Entrepreneurship

Types of Entrepreneurs

• Innovators – These entrepreneurs focus on creating a new product that differentiates itself in the market. They need a considerable amount of capital to start with. 
• Hustlers – This type of entrepreneur is more concerned with the vision of creating a product than making money. They differentiate themselves through less capital and less original ideas, but with a firm conviction and strong work ethic. Hustler entrepreneurs take longer to succeed. 
• Buyers – This type of entrepreneur has a lot of capital to evaluate a business’s potential and acquire it to run independently. 
• Imitators – As the name suggests, these entrepreneurs use someone else’s idea that may have failed before to improve upon it. 

Check out the detailed out blog on Types of Entrepreneurs

Who is a Businessman?

A businessman, businessperson or business owner focuses on improving revenue for a product or service already in the market. They focus on business strategy to provide a vision for their employees and grow revenue. 

Types of Businessmen

• Sole Proprietor – The businessperson owns the whole business without any partners. 
• General Partner – In a general partnership, more than two businesspersons run the business. Each partner is liable for the actions of the other partners. 
• Small Business Owner – These businesspersons own their business that targets a specific audience. 

Similarities Between Entrepreneur and Businessman

Also, highlighting the parallels between both professions below. 

Work Ethic and Long Hours

Both the entrepreneur and the business owner show an unwavering work ethic. They tirelessly dedicate themselves to their pursuits. They share a common ethos of hard work by often putting in extensive hours to propel their ventures forward.

Sales and Self-Promotion Skills

Another parallel between these roles lies in their prowess in salesmanship and self-promotion. Both the entrepreneur and business owner possess a knack for effectively selling their products, services, or ideas. They excel in articulating the value propositions of their offerings. They are able to leverage persuasive communication to attract customers, investors, or stakeholders. Additionally, a strong sense of self-promotion helps in building their brand, establishing credibility, and expanding their network.

Starting as Small Ventures

The journey often commences with humble beginnings for both the entrepreneur and the businessman. They share the experience of starting as small-scale ventures, navigating the initial stages of their enterprises. This initiation allows them to grasp the intricacies of their industry, comprehend market dynamics, and adapt swiftly to changing circumstances. Such a foundation serves as a learning ground, providing invaluable insights that contribute to their eventual growth and success.

Parting Thoughts

There you go! Now you know the difference between entrepreneur and businessman. Both have unique advantages in the market and society, and each requires a growing skill set to succeed. If you are inspired enough, explore the free entrepreneurship and startup courses. 

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