What’s between a Businessman and an Entrepreneur?
Although the difference between a businessman and an entrepreneur tends to be quite narrow, there are aspects where the two differ.
If we were still living centuries back, businessmen would be the merchant and entrepreneur would be the inventor.
Merchants sold goods, foods, etc. whereas inventors carried out new products or services, such as a farm harvesting system with low labour cost. Of course, entrepreneurs too earned money from their inventions.
The Clear Cut Between
Here are a couple of areas where there is a difference in the approach between business and entrepreneurship:
1. Objective
Businessmen run their business for the primary purpose of making profits while entrepreneurs intend to make profits but with a purpose of making a difference.
Essentially, the entrepreneur wants to change the world by addressing a problem. He is passionate
about providing unique solutions for problems in the community.
2. Uniqueness that stands out
A businessman would run a business that’s based on a concept which is not original or new. He can be someone who takes up rental services, labour recruitment or consultancy, and earns profit from running them.
He invests energy and resources to run the business, based on an already existing model.
On the other hand, an entrepreneur invests energy and resources (especially time) to build a model that is original, building from scratch.
Having a Clear Picture
Entrepreneurs are the founders and creators of new products or services, while business owners start a type of business that already exists within the marketplace.
For example, an entrepreneur invents a new machine to cut hair whereas a businessman opens a barbing salon.
Another example (a beautiful one) is an employee-entrepreneur, Thomas J. Barratt, who took up an initiative on advertising to improve sales of Pear soap company. He was an employee of the company, but took up the sales challenge.
He developed the use of slogan, image and phrases; and became “the father of modern advertising”. But followingly, businessmen took on advertising for transactions and profits.
Conclusion
Both entrepreneurship and business involve risk-taking, investing resources and profit-making. But entrepreneurs are more innovative and revolutionary than businessmen. Concisely, an entrepreneur is a businessman plus.
Examples include Jacob Ngano, Biliki Abiola, Chinedu Azado…..Steve Jobs.
Entrepreneurship is more a lifestyle of solving human problems than merely making money.