Entrepreneur and manager, these two terms that are often used in management parlance, although they sound similar but are different in their functioning. Both of these help in the proper organization, control, and management of the enterprise.
The most prominent difference between entrepreneurs and managers is the position that they hold in an organization. An entrepreneur is the owner of the business concern while the manager is an employee of the business concern.
- Entrepreneur: An entrepreneur is referred to the person who is responsible for building an organization by accumulating various factors such as labor, land, and capital. An entrepreneur takes all the business risks to gain profit.
- Manager: The term manager represents a person who can get his work done with the help of assistants. The objective of a manager is to achieve business goals effectively. The manager serves the principal functions in a business organization which are planning, directing, organizing, motivating, controlling, and coordination.
Difference Between Entrepreneur and Manager
|Meaning||An entrepreneur is a person who builds a new organization by procuring resources and working for aprofit.||The manager is an individual who takes the responsibility of controlling and administering the organization.|
|Focus||Business startup||Ongoing operations|
|Approach to task||Informal||Formal|
|Driving force||Creativity and Innovation||Preserving status quo|
|Risk orientation||Risk taker||Risk-averse|
It is quite clear that an entrepreneur and a manager are two different persons in an organization. So they cannot be juxtaposed. While managers are concerned with managing available resources, entrepreneur focuses on spotting and capitalizing on opportunities.