Business vs Entrepreneurship
Most laypeople, students taking their first Economics class, and even people who go around their whole life with an idea for a business think business and entrepreneurship refer to the same thing. But, these two terms are not interchangeable. These businesses and entrepreneurship refer to a very distinct approach to business. Let’s understand the difference between business vs entrepreneurship.
In simple terms, a businessman follows the path of another person. They use a previously existing idea to create something new to build a business. On the other hand, an entrepreneur comes up with a new, innovative idea. They make a new path for themselves.
An entrepreneur can become a businessman. But someone running a business cannot do the same with their existing business. As you can see, there is only a thin line that separates them, but it is an important line. Let us delve deeper into business vs entrepreneurship.
Who is a Businessman?
A businessman starts a business with the idea that has always existed. Maybe it is a family business; perhaps they inherited it from their family. But, they are not contributing anything new to the market in the end. They improve on an already present idea and thus have become a market player. We see hundreds of potato chip brands—this not entrepreneurship. They are providing some variety in an already existing product. Hence, they face severe competition from other businesses and companies.
The businessman operates off of high demand and maximum profits. That is their objective. In a business, the risk factor is comparatively low. The businessman knows the product works. They know that it sells, so the risk of failing is relatively low.
Who is an Entrepreneur?
An entrepreneur is someone with an original, creative, and exclusive idea. When they establish their new venture, they bring something new to the world. Entrepreneurs are highly enterprising individuals who take risks and are willing to endure the market’s unpredictability. In 1886, the Coco-Cola company was entrepreneurship. They gave the world something that had never existed before. And, they took the world by storm and revolutionized the way we think of beverages. They were a market leader—and they still are. But through the centuries, the Coca-Cola company is better identified as a business.
When entrepreneurs start a business, it is called a start-up. In the future, should they become successful, they will become a business.
The Main Differences
The difference between a business vs entrepreneurship is narrow, yes. But the aspects in which they differ are crucial. It defines who they are, what they do, and how they operate. So let us look at the main features that separate the two.
Businessmen run their businesses to make profits; entrepreneurs do not. Entrepreneurs run their enterprise to make a difference and contribute something new to the world. For them, making a difference is a secondary goal. Their objective is to introduce something unique to address a deficit or solve some societal problem.
Businessmen, most of the time, do not care if their product is unique or not. They only want to enhance an existing good or service to compete with the rival business. They will focus on improvement rather than originality. People who run businesses run their companies based on an existing model. They invest their resources to meet demands and be the best, most sought-out business in the market.
To an entrepreneur, innovation and uniqueness are crucial. They are not entrepreneurs if that is not their primary focus. They expend their resources to make a good or service wholly different from the rest. Entrepreneurs have the build their products from scratch. And, they have to create a business model tailored to their idea. For them, it is about carving a niche in the market.
Every business contains risks. Your business can fail if you rely on a tried-and-true model—because then you’re not original enough. And you might have the most creative idea of them all. But if the people don’t receive it well, your venture will fail. But statistically speaking, businesses are not as risky as start-ups. Thus, businessmen are not crazy about taking too many risks. They are usually cautious people who focus on making profits. Entrepreneurs, however, close their eyes and plunge head-first into unpredictability. Unless they face those dangers, they cannot be successful.
Businessmen act fast to achieve their goals. They need to, or someone else will get the one-up on them, and they will lose valuable business. They are grounded in the present, seizing every opportunity to maximize profit. And, they are quick on their feet, usually only concerned with the near future. If you are an entrepreneur or know an entrepreneur, you probably know these individuals spend years working and perfecting their ideas. And even when they have created their start-up, they are solely focused on the long-term goals. They have a grand vision for the future, and everything they do is get there.
Businessmen are planners; they are analytical managers. However, entrepreneurs are artistic, innovative, hands-off people who are not interested in day-to-day management. They usually prefer to hand administration off to more experienced people.
Businessmen and entrepreneurs are both valuable to the economy. You cannot have an economy without either. If you plan to start a business or start-up, we wish you the best of luck! It is all about doing what is right for you and your product. We hope you have a wonderful experience!
Also Read: How To Start Your Own Business in 2021?