One word that we are seeing used more and more today is ‘entrepreneur’. With the growth of the internet and the world becoming more digital, it has become much easier for people with great ideas to make their mark and establish successful businesses.
If you do this, though, are you an entrepreneur or are you a businessman? The terms aren’t interchangeable and there is a big difference between the two. Although there are also many similarities—both entrepreneurs create jobs, provide a product or service, and handle a treasury—there are just as many differences.
Key Differences Between Entrepreneurs and Businessmen
Some of these are quite subtle but they are what make the big distinction between entrepreneur and businessman.
1. An idea’s originality
A businessman can make a success out of almost any idea, no matter if it’s unoriginal or has been done to death. This person is well-versed in the world of business and chooses a business idea that’s hot, profitable, and proven regardless of whether it is something unique and original or borrowed.
On the other hand, an entrepreneur is usually the first or one of very few in his field. A lot of time, energy, and money is invested often for very little return at first. This is why his business is a start-up and takes time to kick off.
2. The element of risk
Most businessmen already have enough profits—they know their way around a treasury and have only ever pursued business for profit. Although there are some businessmen who aren’t solely motivated by profit, they are few and far between.
In contrast, entrepreneurs are far more focussed on changing the world with their original idea, looking after their employees, and the success of their business rather than on their treasury. An entrepreneur is less likely to take a huge risk for the potential of higher profits whereas a businessman would. In most cases, a businessman has less to lose.
3. How he or she views the world
A businessman mainly sees the world as an opportunity to turn over a profit and a living. To this extent, a businessman will do whatever it takes to make a quick buck with little regard to other factors such as the welfare of others, the environment, or the long-term impact that his actions will have.
An entrepreneur views the world as an opportunity to do some good whilst making a living at the same time. Start-ups are more likely to be more dedicated to the greater good whereas large businesses are corporate machines.
4. What success is to them
A businessman mostly defines success in terms of his treasury, profits and how well his stakeholders are doing. The more money that is being earned, the more people who are investing in the business, and the bigger the bonus cheques, the higher the success.
Entrepreneurs tend to avoid defining success. Instead, they just get on with their work and let the world decide whether his endeavors are successful. An entrepreneur knows that his time is better spent not thinking about whether he is successful but instead on growing his start-up.
5. What the purpose of their work is
Businessmen mostly do business to make a profit, a livelihood, and to make a name for themselves in the world. Whilst there are some businessmen who aren’t profit-orientated, there isn’t a great deal of them.
Entrepreneurs are more concerned with doing what they enjoy for a living, living comfortably whilst doing it, and doing some good for the world. Entrepreneurs usually go into business for their passions rather than for profits and that is why you are more likely to see an entrepreneur loving and enjoying their day-to-day work whereas some businessmen may not.
This is Just Our Opinion, Though…
Remember that this list is just what we think from our experiences within business. At the end of the day, entrepreneurs and businessmen are still doing the same thing—running an enterprise that earns money. Whether you call yourself an entrepreneur or a businessman is immaterial, all that matters is you are managing it, your treasury, and your life in a way that you are happy with.