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| − | Seven Top Differences Between Entrepreneurs and Businessmen
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| − | Entrepreneurs and businessmen are most of the time interchangeably used. I too happen to be guilty of using one or the another at times. However, Personally i think that there is a factor between the way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is all about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a well known path and takes lesser risk than a business owner.Let us look at a few of the points where entrepreneurship is different from running the business.
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| − | Entrepreneur are in the company of creating something new
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| − | The reason for clients are to recycle the products. Hence business is more like trading. By trading I mean purchasing goods from one place and selling in the other. This may also involve manufacturing at some step but the fundamental principal continues to be same. Entrepreneurs create new things. They identify an issue and work to create innovative solutions that help reduce or eliminate problems. Even if they do trading, they'll apply innovative techniques to it. Let me provide you with a good example. If the who owns retail chain is adding internet sales as one of his channel, he's just being a businessman looking for new methods for getting more business. However if he goes an creates a cutting-edge product which never existed before, he is becoming an entrepreneur. Here, he's taken the risk upon himself.
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| − | Entrepreneur's "Business" is exclusive
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| − | An entrepreneur won't operate in places that there is already an audience. He will use his scarce money to explore new. He'll for instance, choose new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing strategies( viral marketing) etc. He side steps the market that is too competitive and works inside a niche area.
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| − | Entrepreneur puts his own money first
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| − | Since individuals are not convinced of his ideas, entrepreneur has to put his cash on the line first. He needs to show that an industry exists for these products he is creating. Then only he is able to get external finance. This is in contrast to a normal business, where it is known that market exists and therefore investors are more willing to purchase such businesses
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| − | Entrepreneurs dealing with new innovative products convey more breakout chances
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| − | If the potential risks are high, so are the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns on the capital it invests. The surety of creating profit regular business is more than that of entrepreneurship though.
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| − | Entrepreneurs experience more uncertainty than regular businesses
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| − | Entrepreneurship is certainly more riskier and uncertain than conducting a regular business. A business owner faces the question almost daily about success of his product, price of developing the merchandise, customer's adoption, team motivation and anything else. There is uncertainty and un-evenness of sales. A normal business however has pretty much regular sales and it is less uncertain than an entrepreneurial venture
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| − | Entrepreneurs share business ideas with team
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| − | Entrepreneurs build on vision and they canrrrt do it alone. So a business owner constantly must remind his team and himself about what they're creating and why it'll work. A business owner has to look for new ways to motivate the employees. The roles of employees change frequently based on the perceived business conditions In a business however, the roles of workers are same through the life time from the business
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| − | Entrepreneurs share the success using the team
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| − | Entrepreneurs don't have much cash to provide. Hence they offer equity for their employees. Once the venture works everyone that has a shares becomes rich. One of the prime example is Infosys technologies in Bangalore. It has created so many millionaires simply by distributing equities to the founders and employees of the company. A company on the other hand is less available to sharing equity with employees and would pay higher salaries to pay for it.
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| − | [http://www.streamingfaith.com/index.php/directory/broadcaster/29586/ david cerullo]
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| − | I nowhere say that businesses can't be entrepreneurial or vice versa but that there's a significant differences between the way a entrepreneurial venture and a business works. A business however can become entrepreneur by doing something innovative while entrepreneur can help to eliminate the uncertainty by being a lot more like a company.
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