The Complexities of Differentiating Entrepreneur & Manager definition of entrepreneur and manager
Definition of Entrepreneur Risk Taking
Businesses provide a plethora of services, and who is better to provide them than those who take initiative and assume responsibility? This is where the differences between an entrepreneur and a manager arise.
What is an Entrepreneur? Definition of Entrepreneur and Manager
According to the Merriam-Webster Dictionary, an entrepreneur is an individual “who organizes, operates, and assumes the risk for a business venture.” Such individuals often have creative ideas and the passion to develop their projects into successful organizations. Perhaps the most defining characteristic of an entrepreneur is their risk-taking tendencies. By stretching their own financial and personnel resources, they strive to create unique products and services in the field of their choice.
What is a Manager? Definition of Entrepreneur and Manager
On the otherhand, managers are fundamental to all organizations and they are responsible for running everyday operations. Harvard Business Review defines a manager as someone “who coordinates and oversees the work of other people so that organizational goals can be accomplished.” A manager's responsibilities may include motivating employees, creating corporate strategies, and analyzing and resolving enterprise problems. Ultimately, the goal of a manager is to ensure that an organization reaches its highest level of productivity.
Defining the Differences Definition of Entrepreneur and Manager
There are key differences between an entrepreneur and a manager. Entrepreneurs often develop groundbreaking ideas, while managers are usually tasked with executing them. On the financial front, entrepreneurs are willing to take risks in order to generate profits, while managers seek to optimize efficiency in order to yield the most cost-effective results. It is also important to note that entrepreneurs typically sit at the top of the organizational hierarchical structure while managers are subordinate to them in terms of authority. Since entrepreneurship and management requires a different sets of skills, one individual is likely incapable of excelling in both fields. That being said, a successful combination of the two holds great potential to create a thriving business venture.
