Entrepreneur and businessman are two different words, referring to different professions. But these days, from social media to tea parties, the two words are being thrown together.
An entrepreneur is sometimes called a businessman, and a businessman is sometimes called an entrepreneur. Although the two people seem similar in simple thought, there is a big difference between them.
A businessman starts his business following a specific and established idea. Most of the time he deals in products or services that are in high demand in the market, so he minimizes the risk in his business and aims at maximum profit. However, being an established idea, the competition here is high.
On the other hand, an entrepreneur starts his business to establish a unique, new idea. It is this new type of idea that mainly differentiates him from the businessman.
Because of new and untested ideas, his risks are high, and he has to constantly apply creative strategies to deal with them. But if he can establish it, he creates a new type of market that brings changes in people’s lifestyles.
Fundamentals of Entrepreneur and Businessman
A businessman starts his business by applying an old idea. So the type of market he enters is pre-existing, ie: franchise or retail market. His main objective is to achieve maximum profit. So he doesn’t have to worry about the originality of the business.
An entrepreneur is the first inventor of his product and market. He has to establish that market. He has to invest a lot of time, energy, and money in this but still, there is a huge risk involved.
Therefore, he cannot always establish his idea. His idea had to be original because he had to create new products and new markets. This is why its beginnings are called start-ups.
Purpose and Nature
The entrepreneur puts all his energy into making his venture a success. Risking one’s own time and money comes to his mind relatively little. His main objective is to establish his idea in the world.
In this respect, he is an innovator. However, innovation does not mean that he has to create a new type of technology or a completely new type of app. He can improve any existing service with his innovative power. Eg: The taxi service was already there in the world. Companies like Uber, and Lyft have improved the technology of this service.
Entrepreneurs never give up because of such a stimulating nature. He is constantly trying to figure out new strategies and does not have the mindset of giving up to make his dreams come true.
On the other hand, the purpose of doing business for the trader is different. His goal is to maximize profits. He shows no inclination to apply new techniques. Because the risk of a new strategy is very high.
He generally thinks of established procedures and follows them. Thus his business became successful. His main goal is to make his business grow stronger and faster.
For this purpose, the businessman can introduce various products in his company. For example: Unilever is constantly buying different brands from all over the world and selling them as its own products. An entrepreneur’s main goal is to establish his idea, businessman’s goal is to make a profit.
The Risk
The entire enterprise of entrepreneurship is a huge risk. Most entrepreneurs spend a significant period of their lives establishing their idea. Because they believe they can change the world according to their thoughts.
When taking a risk, an entrepreneur realizes that he is thinking about something completely new that no one has solved before. However, the pursuit of this goal motivates him to take risks.
If successful, he will be the leader because he is the founder of this market. The example of Netflix can be given in this regard. Big media houses like HBO, Amazon, and Disney have started streaming services, but in terms of competition, Netflix has gone out of touch.
On the other hand, traders want to keep the amount of risk to a minimum. They don’t mind spending time but risk is not on their list.
So if they fail, they have the mentality to close the business and start a new business. Even if the trader takes a risk, it is a calculated risk and he follows an established procedure, where the risk is mitigated.
He goes through a long process to ensure that his decision will yield good results. However, while walking on the established path, he has to face many rivals.
Skills
The skills of businessmen and entrepreneurs are of two types. Entrepreneurs show the attitude of coming out of negative outcomes and mindsets. He can make quick decisions in any bad situation. He moves towards success with the morale that each previous failure builds.
A businessman relies more on his experience. As a result of long experience, he has become adept at strategizing in such a way that he can anticipate what kind of problems may arise. By calculating in this way, he can move toward success.
Definition of Success
The entrepreneur does not know how his product or service will be accepted by the general public. If it doesn’t resonate with the common man as he thinks, then there will be no demand for his product in the market.
His initiatives must therefore have an impact on the lives of ordinary people. So an entrepreneur’s success is defined by his customers. Thus, his success has no definite boundaries.
A businessman has a clear goal. If that goal is reached, he can call himself successful. But this goal is not entirely new and it cannot be said that he is the first to walk on such a goal. Rather, he came this way because of someone else’s success. So failure here is unbearable for him.
Adaptation
Change is a common occurrence in the real world, even more so in the business world. Any market can change very quickly. Entrepreneurs and business people cope with this change differently.
Entrepreneurship depends on change to survive. His main objective is to bring change to the market with his startup. This is why he wants to adapt to change quickly. Even if it is a change of one’s own idea.
A good example of this is entrepreneur Richard Hendricks’ start-up in the HBO TV series ‘Silicon Valley’. Faced with various obstacles, his startup idea changed in many ways. This is how entrepreneurs change their ideas to adapt to new situations.
The businessman follows the traditional, established path, so change is not pleasant for him. If an established method that worked well before does not work now, it becomes a challenge for them.
They do not want to change their products so easily. Usually, they believe that change will bring negative results. But many times, consumers get bored with an existing product and look for something new.
Perspective
Perhaps the biggest psychological difference between entrepreneurs and business people is how they see and think about the world. A businessman finds opportunity in everything in the world.
If this opportunity is utilized properly, it is possible to earn a lot of profit from it. Thus, economic motivation is at the very heart of their business and they think about how to create opportunities to succeed along the way.
Entrepreneurs, on the other hand, are imaginative and problem solvers. They see the world around them as a challenge and think about how to solve or improve it.
Thus they constantly find problems. But their solution is not always good but with that solution, they dream of changing the world.
Why are entrepreneurs and businessmen so important?
All of what we mean by business is the result of the efforts of the entrepreneur. The entrepreneur gives us new products. The business group delivers the product to us. If entrepreneurs didn’t invent new products and services, our lives would be boring.
We see thousands of products in the market to meet this need in various areas of life. They did not happen in a day. At first, there were maybe 5 types of products, or maybe 10 types.
Today we find a variety of products in the market to meet the same needs. Not all facilities are the same. Some have fewer opportunities, and some have more. Which is more durable and which is less durable.
These are the results of the hard work and efforts of various entrepreneurs. We get the products easily in the market but an entrepreneur spends years to inventing a new product. Sometimes they fail, sometimes they stop, and finally, they succeed, and the product is marketed.
Similarly, the relationship between businessmen and entrepreneurs is very close. If entrepreneurs do not market the fruits of the entrepreneurs’ hard work, everything will fail.
Again, if businessmen sell a product at a higher price to get more profit, that product will not work in the market even if it is good. Therefore, entrepreneurs and traders are intimately involved in creating a very clear market.
Their disproportionate relationship can destroy any country’s economy. Not only that, if this relationship deteriorates, the wheels of the world economy will also stop. So entrepreneurs and businessmen are the key to business.
Many fall into the mistake of making a distinction between an entrepreneur and a businessman. But it must be remembered, here no one is comparatively better or worse than the other. Because the world needs both entrepreneurs and businessmen and the contribution of no one is less in any part. We have to rely on both.
source: Roar Bangla
