Businessman vs Entrepreneur: differences and similarities

They look similar, they talk about similar things, and they run a business. What's the difference then between a businessman and an entrepreneur?

Basically, a businessman is someone who starts a business based on an existing business idea in the market, while an entrepreneur is someone who starts a business with a fresh new, innovative business idea.

Let's dig a bit into the role of each of them, and then consider some main differences and similarities between them.

What is a businessman?

A businessman is business-oriented individual with a focus on making money through the traditional business model. The risk they take is very low since the concept has been tried and tested by other existing companies, so the chance of failure is low.

The businessman looks for opportunities in the market, but is not willing to innovate. Rather than that, the businessman looks for safe investments, with high returns on the medium-long range. They spot and take advantage of business opportunities.

An example of a businessman is Donald J. Trump, whose main business has been real estate.

What is an entrepreneur?

An entrepreneur is a business-oriented person with a focus on making money through a new revolutionary business idea. An entrepreneur is all about innovation. Due to how innovative and unknown the idea is to the public, the entrepreneur is willing to take on very high risk.

When an entrepreneur creates a new venture, it receives the name "start-up". Start-ups usually look for investors and try to grow the business as much as possible to attract more investors, while they keep innovating and expanding the opportunities. Since innovating and creating takes so much of their time, they usually are very weak at organizing and settling the newborn company.

Do you have the needed skills to become an entrepreneur?

If you are planning to become an entrepreneur, keep in mind that it's not an easy journey.

We prepared an article to assist you in the way, discussing 10 characteristics of a successful entrepreneur.

An example of an entrepreneur is Elon Musk, whose innovative ideas and start-ups have made him one the richest men ever on earth.

The Similarities Between Entrepreneurs and Businessmen

What are the matching points between an entrepreneur and a businessman?

• Drive: Both businessmen and entrepreneurs are passionate about their businesses and they are willing to put in long hours and hard work to achieve their goals.
  
• Vision: Businessmen and entrepreneurs can see the potential of their businesses and they are able to develop a plan to achieve that potential.
  
• Risk-taking ability: Both businessmen and entrepreneurs are willing to take risks for the sake of the project.
  
• Resilience: Businessmen and entrepreneurs have the ability to face difficulties and still keep moving forward.

The Differences Between Entrepreneurs and Businessmen

• Risk exposure:
  
  
  • Entrepreneurs often make significant sacrifices in pursuit of innovation.
    
  • Businessmen carefully assess their investments to mitigate risks and ensure returns.
    
    
• Ownership:
  
  
  • Entrepreneurs usually found and own their businesses. They often keep enough stake so as to maintain choice-making power over the company. Some of them are solopreneurs.
    
  • Businessmen may or may not be the founders of the businesses they manage. A businessman can work as executive within a established company, but he often has a more limited ownership role compared to entrepreneurs.
    
    
• Vision and Long-Term Goals:
  
  
  • Entrepreneurs tend to have a strong vision for their businesses, become the best and make a lasting impact on the world. They are motivated by long-term goals and are willing to endure initial losses for future gains. They usually envision a world in which they ideally become the next Elon Musk.
    
  • Businessmen are more focused on short-term profitability and the efficient operation of a business. They may prioritize stability and consistent returns over disruptive innovation. They are often senior profiles, and thus they kind of know what life is about. They want to take home a good salary, rather than creating a millionaire business that they may not enjoy.
    
    
• Adaptability:
  
  
  • Entrepreneurs are known for their ability to improvise, test new ideas, and readily adapt to changing market needs. They are often prepared to pivot their business strategies in response to valuable market feedback.
    
  • Businessmen may have a more stable and established business environment, allowing for a more structured and predictable approach to operations. Improvising is not part of the program in a businessmen daily routine.
    
    
• Roles and Responsibilities:
  
  
  • Entrepreneurs often wear multiple hats and are involved in various aspects of their startup, from product development to marketing to finance.
    
  • Businessmen may exercise specialized roles within established companies, such as managing a specific department, division, or function.
    
    
• Funding and finance:
  
  
  • Entrepreneurs usually depend on external funding to carry out their ideas. Funding a start-up means seeking venture capital, angel investors, or bootstrapping.
    
  • Businessmen have access to more established sources of funding and resources within their organizations, like the company's savings. They have no trouble when visiting a bank office, as there is not just a commercial, but personal relationship established.
    

We hope this analysis made clear what's the difference and similarity between a businessman and an entrepreneur.

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