There are common misconceptions that the terms’ entrepreneurs’ and ‘business persons’ mean the same, but these words refer to two unique professionals with different approaches to business. An entrepreneur forges a new company with original solutions, while a business person builds on existing solutions to make a profit. Knowing the difference between both professionals can help you discover the roles you can fit into in the business sector. In this article, we explore the critical differences between an entrepreneur and a business person, highlighting their responsibilities and showing their career outlooks.
What is an entrepreneur?
An entrepreneur establishes a business after recognizing a problem and creating a new solution as a product or a service. They are resourceful, innovative, opportunistic, risk-taking, self-motivated, and open-minded to profit from their ventures. Most entrepreneurs work alone to locate funding to support their business plans and buy supplies.
Entrepreneurs take on all the risks associated with starting a business and do so with limited resources. Their primary objective is to boost the economy and profit with creative solutions and brilliant ideas. They rely heavily on networking and marketing to spread their ideas. Common examples of entrepreneurs include Bill Gates and Elon Musk.
What is a business person?
A business person owns or works in a vital position in a company that provides goods or services to its clients. They have a deep understanding of their commercial or industrial niche and are aware of the target market for their products from the moment they launch their enterprise. Their primary goal is to make money using intellectual and financial resources.
A business person’s firm often face stiff competition because many companies in the market operate with similar business ideas. Although a small risk is involved, the likelihood of failure is low because other established businesses have already tried and tested the concept. Common examples of business persons include owners of furniture stores and supermarkets.
Differences between an entrepreneur and a business person?
Here are the significant differences between entrepreneurs and business persons:
How they start
Entrepreneurs bring their original ideas to life by creating their own companies. They manage all aspects of their business from inception, and they possess the flexibility to start their business at any time. They do not take over from another individual.
In contrast, business owners establish their position by acquiring or inheriting an existing company or initiating their business venture. Sometimes, a business owner may assume the role if they belong to a family business or the previous owner retires.
Risk level
Entrepreneurs have a relatively high-risk range for entrepreneurs. There is a significant chance of failure because they are responsible for starting a new business, which involves investing time, money, and resources into a venture that may or may not be successful. The venture’s success depends on various factors, such as market demand, competition, economic conditions, and the entrepreneur’s ability to execute their vision.
In contrast, business persons have a lower risk level than entrepreneurs because they have an established business with a proven track record and an established customer base. Business owners also have the advantage of experience and resources accumulated over time, which can help them mitigate risks and make informed decisions. They deal with risk factors like changes in the market, economic conditions, or competition, which are typically lower than the risks entrepreneurs face.
Goals
Entrepreneurs act with a desire to create something new and innovative, and their goals often include the following:
- creating a new product or service that fills a gap in the market
- disrupting an existing market with a fresh approach or technology
- building a successful business from scratch
- achieving financial independence
In contrast, Business persons optimize existing processes and strategies to achieve incremental growth and profitability goals. Their goals include:
- maximizing profits and revenue
- growing market share and expanding into new markets
- building a solid brand and reputation
- developing a loyal customer base
Leadership roles played
Entrepreneurs maintain complete control over business decisions and daily operations by starting their companies from scratch. While entrepreneurs may seek support or guidance from other professionals, they act as their bosses throughout the business process.
Business owners occupy senior positions within a company. Note that they adapt to instructions or suggestions from various other professionals involved in the business, such as stakeholders, investors, and board members. As a result, business owners often collaborate closely with different business professionals to effectively manage their companies.
Creativity and vision
Entrepreneurs are typically associated with creative and long-term visions. They identify a need or opportunity in the market and develop a new product, service, or business model to address it. Entrepreneurs act with a vision to disrupt an industry or change the world. They are willing to take risks and are comfortable with uncertainty. Entrepreneurs are unsatisfied with the status quo and constantly seek improvement and innovation.
Meanwhile, business persons focus on running their established businesses, which they started or acquired from someone else. They maintain and grow the business rather than develop new ideas or products. While they may have a vision for the company’s future, they focus more on executing a plan than coming up with new and innovative ideas.
Interpersonal relationships
Entrepreneurs have strong relationships with their employees and customers. They are heavily involved in the business’s day-to-day operations and often interact directly with them. They often seek to create a positive and collaborative work environment where employees feel valued and engaged and customers feel strongly connected to the brand.
In comparison, business persons have a different level of passion for the business than entrepreneurs. While they may still value their relationships with employees and customers, their primary focus is achieving business objectives rather than fostering personal connections with employees.
Career outlook
Entrepreneurs have a less defined career path. Their career outlook depends on the success of their business. Although they have more flexibility in their career and can shape their courses based on business decisions, they have less job security than business persons.
In contrast, business persons have promising career paths because their businesses are well structured with opportunities for promotions and advancements. They also have higher job security because their organizations are highly stable with sufficient resources. But, they may need more flexibility because their company has regulations and procedures.
