WiebeMccaleb235: Created page with 'Seven Top Differences Between Entrepreneurs and Businessmen Entrepreneurs and businessmen are more often than not interchangeably used. I too have been responsible for using o…'

WiebeMccaleb235 — Fri, 29 Jun 2012 13:14:44 GMT

Created page with 'Seven Top Differences Between Entrepreneurs and Businessmen Entrepreneurs and businessmen are more often than not interchangeably used. I too have been responsible for using o…'

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Seven Top Differences Between Entrepreneurs and Businessmen

Entrepreneurs and businessmen are more often than not interchangeably used. I too have been responsible for using one or the another at times. However, Personally i think that there's a significant difference between your way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a common path and takes lesser risk than an entrepreneur.Let's explore a few of the points where entrepreneurship is different from running the business.

Entrepreneur have been in the company of making something new
The reason for business is to recycle these products. Hence business is more like trading. By trading I am talking about purchasing goods in one place and selling in the other. This may also involve manufacturing at some step but the fundamental principal remains the same. Entrepreneurs create something new. They identify a problem and work to create innovative solutions that help reduce or eliminate problems. Even when they do trading, they will apply innovative methods to it. Let me provide you with a good example. If an owner of retail chain is adding internet sales as one of his channel, he's just being a businessman looking for new methods for getting good business. If however he goes an creates an innovative product that never existed before, he is becoming an entrepreneur. Here, he's taken the risk upon himself.
Entrepreneur's "Business" is exclusive
An entrepreneur won't work in places that there's already a crowd. He will use his scarce money to explore new. He will for example, choose new channels of sales( internet, m-commerce etc), innovative products ( a brand new software), innovative marketing techniques( viral marketing) etc. He side steps the market that's too competitive and works inside a niche area.
Entrepreneur puts their own money first
Since people are not convinced of his ideas, entrepreneur has to put his cash on the road first. He has to show that a market exists for the products he's creating. Then only he is able to get external finance. This really is as opposed to a regular business, where it is known that market exists and therefore investors tend to be more willing to invest in such businesses
Entrepreneurs dealing with new innovative products convey more breakout chances
If the potential risks are high, so might be the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A normal business with lower risk will get lower returns on the capital it invests. The surety of creating profit regular clients are more than that of entrepreneurship though.
Entrepreneurs experience more uncertainty than regular businesses
Entrepreneurship is certainly more riskier and uncertain than conducting an ordinary business. An entrepreneur faces the question almost daily about success of his product, price of developing the merchandise, customer's adoption, team motivation and everything else. There's uncertainty and un-evenness of sales. A normal business however has more or less regular sales and is less uncertain than an entrepreneurial venture
Entrepreneurs share businesses with team
Entrepreneurs develop vision and they cannot do it alone. So a business owner constantly needs to remind his team and himself about what they are creating and why it will work. A business owner has to always look for new ways to motivate the workers. The roles of employees change frequently in line with the perceived business conditions In a business however, the roles of workers are same through the life time of the business
Entrepreneurs share the success with the team
Entrepreneurs don't have much cash to offer. So they offer equity to their employees. When the venture works everyone that has a shares becomes rich. Among the prime example is Infosys technologies in Bangalore. It's created so many millionaires simply by distributing equities to the founders and employees from the company. A business however is less open to sharing equity with employees and would pay higher salaries to compensate for this.

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I nowhere state that businesses cannot be entrepreneurial or vice versa but that there is a significant differences between the way a entrepreneurial venture and a business works. A business however may become entrepreneur by doing something innovative while entrepreneur can reduce the uncertainty by being more like a company.

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WiebeMccaleb235: Created page with 'Seven Top Differences Between Entrepreneurs and Businessmen Entrepreneurs and businessmen are more often than not interchangeably used. I too have been responsible for using o…'