Difference Between Entrepreneurship And Business

 

Introduction

From a common man perspective both the Entrepreneurs and Business owners do the same job, they both get paid for what they provide whether it is some type of good or service. But why are Entrepreneurs so valued and the businessman you see in your near markets not so? What differentiates both of them? In today’s post, we will find out the difference between Entrepreneurship and Business.

What is a Business

In simple language, a business is an activity of making a profit by buying or selling products. It is a profit-oriented activity, all of its operations runs around profit. A person who is starting a business doesn’t need to have an out of the box idea, he just has to observe the market and go for the idea which is highly in demand and can make a profit for him. But it doesn’t mean it is easy in any way because a business owner faces tough competition as there are hundreds of rivals already existing in the market practising the same business which makes it very tough and challenging. In business, you don’t need to have an outstanding and unique idea but it is necessary to have outstanding business tactics to differentiate yourself from your rivals. Some examples of businesses are salons, gyms, grocery store, hotels, real state management, malls, software firms etc.

What is Entrepreneurship 

Entrepreneurship is the ability to create a non-existing idea and develop it into a profitable business enterprise. An entrepreneur is a person who has a creative approach towards the problems of the people, he offer such products and services which brings about a change in the world. He creates a space in the market and the businessman come along following his footsteps but he always dominates the field as he was the first person who started it. It all depends upon the risk-taking capacity, a business owner takes risk comparatively smaller than an entrepreneur, because the idea on which he was working has been validated by someone else, so he gets a decent reward whereas an entrepreneur takes bigger risk so he gets the bigger reward. Some examples of startups are Google, Apple, Microsoft, Oyo, Uber, MC Donalds etc

Top 5 difference between Entrepreneurship and Business  

Entrepreneurship	Business
1. The organization started by an entrepreneur is termed as a startup.	1. The organization started by a business owner is termed as a business.
2. Startups are risky, innovative, and product-oriented.	2. Businesses are comparatively less risky, repetitive, and profit-oriented.
3. They are more focused on people problems and making their life better.	3. They are focused on just one thing that is profit.
4. Have new and innovative ideas that can change the world.	4. Have repetitive old ideas that can make a large profit for them.
5. Entrepreneur makes his own path which is not tested before makes the possibilities of failure very high.	5. Business owner follows the footsteps of other business owners makes the possibility of failure very less

What are the similarities between businessman and entrepreneur?

Pic credit - Photo by Hunters Race on Unsplash

People use both of these terms so interchangeably which sometimes feels like both are the synonyms of each other. In fact, many of them don’t know the difference between them even today. Let us find why it is so difficult to differentiate them? what is the similarity between an entrepreneur and a business owner?

1. The most common thing between them is that they both don’t want to work under someone, they don’t want a person in their lives who kept telling them about their next tasks, they want to run their own show whether it is big or small.
2. Even after their path of starting businesses are different but after some point of time, they face similar problems in scaling and operating their businesses.
3. They are risk-takers they think risk as an opportunity whereas common man fails to do so and end up doing a job.
4. They are very good at communication and leadership skills and know-how to manage peoples.
5. They hold major shares in the economy of their respective countries.