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The main difference between the entrepreneur and manager is that an entrepreneur is the owner of the company and a manager is the employee of the company.
Entrepreneur vs. Manager
An entrepreneur is the owner of a business, so he bears all the financial and other risks. A manager is an employee who works for a salary. An entrepreneur is a person or group of persons, who carries out, by his staff, many activities that are related to the establishment of innovation of his industry. A manager is a person who himself works for achieving the common objectives. Salary or commission is provided to managers, but they are not always part of the profit; however, the reward is given to them based on their productivity. The entrepreneur is the owner of the company and its profit. He/she can distribute the profit with who and when. An entrepreneur may or may not have an educational background. The manager must have an educational background or experience related to the specific field of work. The entrepreneur concerns both present and future because he has to keep both in view, during the operation of the industry. The manager is concerned more with the present only. An entrepreneur gains his resources through own resources or financial institutions or start-up promotion organizations. Manager can distribute workforce and financial resources to appropriate projects to achieve the directive board goals. The final control of different activities of the industry is of the entrepreneur. However, the Control of the manager is on activities related to the management. An entrepreneur determines the policies as he is the owner of his industry, So his responsibility is too much. Being an employee, the responsibility of the manager is lesser, and he is concerned with the only duty given to him.
What is an Entrepreneur?
An entrepreneur is a person who finds an opportunity to create a firm or a project. This entrepreneur looks for the opportunities that are based on the need of the society. The term entrepreneur is a French origin, which means ‘go-between’ or ‘between-takers.’ An entrepreneur creates a new enterprise by assembling inputs like land, labor, and capital for production purposes. An entrepreneur may or may not have initial education or knowledge in the fields of his project. However, he usually has some unique attributes that allow him to be successful. He is essentially a leader and an initiator. n entrepreneur is accountable for the success or the loss of his venture, so he takes this responsibility very seriously. The major focus of an entrepreneur lies in starting a business and later expanding it. The key motivation is an achievement for an entrepreneur. The reward for the efforts of an entrepreneur is the profit he earns from the enterprise. An entrepreneur is a risk taker, and he takes financial risk for his enterprise. Entrepreneurs can be classified based on business, technology, area, motivation, stages of development, etc. An entrepreneur assumes all the risks and uncertainty to achieve profit and growth of the business. He comes up with new and unique ideas and business processes. A successful entrepreneur must be a risk taker, responsible, can analyze things, independent, initiator, high achiever, and highly efficient. Based on their ideas, entrepreneurs are classified as:
- Innovative Entrepreneur
- Imitating Entrepreneur
- Fabian Entrepreneur
- Drone Entrepreneur
What is the Manager?
A manager is not the owner of an enterprise but the one that is responsible for the management and administration of a group of people or a department in an organization. Qualities such as warmth and empathy are very important in a manager. The manager is an administrator of some established business or formulated project. A manager is an employee who works for a salary. They are not part of the profit; however, the reward is given to them based on their productivity. Manager can distribute workforce and financial resources to appropriate projects to achieve the directive board goals. A manager has the objective to maintain and grow the firm or finish a project within the given time. He achieves desirable results by using a set of resources. The term ‘manager’ means a person who gets the things done through his subordinates. The five basic functions of a manager are organizing, planning, directing, motivating, coordination, and control. Managers can be high-level managers, middle-level managers, and low-level managers. Mostly, the managers are chosen based on their education and experience. Being an employee, the responsibility of the manager is lesser, and he is concerned with the only duty given to him. Almost all of the organizations have essentially a manager who is directly in charge of all the work to be done. However, there is an assistant manager also who is under the manager or supervisor who is directly instructed by the manager. Some of the characteristics of a manager are as follows:
- Time Management
- A person who creates an enterprise by investing money and taking risks is called an entrepreneur, whereas an individual who takes the responsibility of administering the organization is known as a manager.
- The main focus of an entrepreneur is on business startup on the flip side manager focuses on managing ongoing operations.
- An entrepreneur is an owner of the organization conversely a manager is an employee of the company.
- The reward for the entrepreneur is profit; on the other hand, a manager gets a salary for the work performed by him.
- An entrepreneur is a risk taker while the manager is risk averse.
Entrepreneur and manager both are different persons in an organization. The entrepreneur focuses on spotting and capitalizing opportunities and managers concerned with managing available resources.