The main difference between Entrepreneur and Manager is their role in the organization. An entrepreneur is the owner of the company whereas a Manager is the employee of the company. Entrepreneur is a risk taker, they take financial risk for their enterprise. The entrepreneur has a vision and focuses on achievements and profit.
Entrepreneurs vs Managers
Who is an Entrepreneur?
Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship. However, such a person usually has some unique attributes that allow him to be successful in his endeavors. He is essentially an initiator and a leader. He brings business ideas to fruition thus starting off his venture.
A successful entrepreneur is usually a responsible person. He is accountable for the success or the failure of his venture, and he takes this responsibility very seriously. And since he is the only person in-charge he is automatically the leader. In fact, leadership qualities are one of the main aspects of an entrepreneur.
Explore more about Entrepreneurship
- Benefits of Entrepreneurship
- Traits and Characteristics of an Entrepreneur
- Types of Entrepreneurs
- Four Key Elements of Entrepreneurship
Who is a Manager?
A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one that is responsible for the management and administration of a group of people or a department of the organization. His day to day job is to manage his employees and ensure the organization runs smoothly.
A manager must possess some of the same qualities as an entrepreneur, like leadership, accountability, decisiveness etc. He must also be a good manager of people. So qualities such as warmth and empathy are also very important in a manager.
Now that we have a brief idea about their qualities and roles, let us take a look at the difference between them
Difference between Entrepreneur and Manager
- The key difference between an entrepreneur and a manager is their standing in the company. An entrepreneur is a visionary that converts an idea into a business. He is the owner of the business, so he bears all the financial and other risks. A manager, on the other hand, is an employee, he works for a salary. So he does not have to bear any risks.
- The focus of an entrepreneur lies in starting the business and later expanding the business. A manager will focus on the daily smooth functioning of the business.
- For an entrepreneur the key motivation is achievements. But for the managers, the motivation comes from the power that comes with their position.
- The reward for all the efforts of an entrepreneur is the profit he earns from the enterprise. The manager is an employee, so his remuneration is the salary he draws from the company.
- The entrepreneur can be informal and casual in his role. However, a manager’s approach to every problem is very formal.
- The entrepreneur by nature is a risk taker. His has to take calculated risks to drive the company further. A manager, on the other hand, is risk-averse. His job is to maintain the status quo of the company. So he cannot afford risks.
Solved Question for You
Q: The decision making of a manager is ______, and that of a entrepreneur is _________
- calculative, intuitive
- intuitive, calculative
- calculative, calculative
- intuitive, intuitive
Ans: The correct option is A. The manager takes scientific approaches, and his decisions are more calculative in nature. An entrepreneur has an informal approach and his decisions tend to be more intuitive in nature.