Do you know the distinction between an entrepreneur and a businessperson ? Even though these words are frequently used interchangeably, they are not synonyms, and in the labor market, they denote two different kinds of specialists.
They both have similar qualities, like business sense and leadership, but the ideas behind them are different roles in the corporate sector. They can be either, but generally each will have a different place in the firm, as well as a different method.
What is an entrepreneur?
In business, the term is used to call a professional holding a leadership role an entrepreneur, which indeed what it embodies: a role. It typically addresses a high-level role in the company structure, including management of one or more domains.
Hence, in the organizational setup, this professional holds considerable decision authority when it comes to business, fiscal, and strategic matters. The entrepreneur is also hands-on, as they are physically involved in the daily activities of the organization and, even if they do not closely observe each step, thoroughly know how the company functions.
This is typically a position that, in addition to technical knowledge, requires extensive behavioral skills. Therefore, a common characteristic of people in this position is an older age group, as acquiring the necessary knowledge requires years of experience.
There are also entrepreneurs who are founders of their organizations and, therefore, have in-depth knowledge of the company, its history, competitors, and the market. Despite possessing an experienced market perspective, these professionals also have certain limitations.
In general, they don’t have a risk-taking nature, preferring to maintain routines and processes without major changes. They can also be, in some cases, more centralized, having difficulty delegating tasks or trusting other managers to make decisions in their areas.
What does it mean to be an entrepreneur?
Unlike a businessman, an entrepreneur has a risk-taking attitude as one of their main characteristics. Entrepreneurship means finding opportunities in a given market to create something different and new.
Therefore, it’s not just a position, but a behavior. Although it’s associated with creating a company, the entrepreneur can act as a collaborator within an organization, applying these qualities to their work.
Still, it is more common for this profile of action to be applied in the development of something new, creating a company, product or service that can precisely offer a solution to the market.
Innovation is the main fuel for this professional, who uses creativity to chart his professional path.
He needs to have behavioral skills , such as good communication skills, resilience and emotional intelligence, but he also needs to acquire a series of technical skills.
Any person who is venturing into business or creating an innovative product or service should properly research the market where they hope to conduct business, learn about other areas of the firm, including the administrative and financial divisions, and keep on building themselves in order to handle the unforeseen issues of a business venture.
How does one differentiate an entrepreneur from a businessman?
While, as we’ve observed, there is some overlap in characteristics, the primary distinction between the two is that one pertains to a role, while the other is concerned with professional conduct.
Therefore, entrepreneurs will typically possess a forward-thinking vision and a sharper sense of trends, looking for new things and willing to change course or hold fast. However, both roles have similarities. Take a look:
Leadership skills
These professionals manage teams, even if they are the leaders of each department within the company. Therefore, developing leadership skills such as open communication, feedback culture, and task delegation is important and necessary in both cases.
Strategic planning
Even though, in practice, this planning will be different based on the more conservative or liberal characteristics of each person, both need to be able to develop strategies based on the company’s objectives.
Troubleshooting
On the path to business success, problems and unexpected events arise constantly. As leaders and decision-makers, these professionals need to be prepared to face these issues and find solutions quickly.
Market understanding
Because of their position within the company, they are responsible for determining the direction to be taken by multiple departments. This means they need in-depth knowledge of the market in which they operate and the company’s segments.
Even a business owner who doesn’t have in-depth marketing knowledge, for example, needs to know what competitors are doing, what actions the company takes to achieve relevant results, and what is being done to promote the brand and its services.