The major point of distinction in between the entrepreneur can be well-understood from the points given below: –
| Basis of Distinction | Entrepreneur | Manager |
|---|---|---|
| Meaning | An entrepreneur is a person who starts a new venture by converting an idea into a business. The entrepreneur properly understands the venture for his own gratification. | A manager is a person who renders his management services to the organization already set up by an entrepreneur. He has the responsibility of controlling and administering the organization. |
| Status | An entrepreneur is the owner of a business venture. He bears the whole financial risk for earning profits. | He is just the employee of an organization who works on a salary basis. Managers do not have to bear the risk. |
| Focuses | He pays attention to starting a business and expanding its operations. | He focuses on the daily operations of the business for ensuring smooth functioning. |
| Rewards | An entrepreneur gets profit which is uncertain as a reward for bearing the business risk. | The manager gets a fixed salary as a reward for rendering his management services to the organization. |
| Approach to task | He can be casual and informal in his role. | He needs to be formal to every problem. |
| Qualifications | An entrepreneur needs to possess qualities such as foresight, risk-bearing ability, high achievement motive, etc. | Managers possess a better knowledge of management theories and practices. |
| Innovation | He brings in innovative ideas and he thinks about producing new products as per the changing demands of consumers. He is termed as an ‘innovator’. | He is simply responsible for executing the ideas of an entrepreneur. The manager translates these ideas into business practices. |
| Risk orientation | Risk-taker | Risk-averse |