The major point of distinction in between the entrepreneur can be well-understood from the points given below: –
|Basis of Distinction
|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.
|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.
|He pays attention to starting a business and expanding its operations.
|He focuses on the daily operations of the business for ensuring smooth functioning.
|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.
|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.
|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.