The definition of an entrepreneur differs from that of a businessman! Let’s find out their differences here.
Many people assume that the definition of an entrepreneur is no different from that of a businessman. However, is it really the case? In practice, anyone can pursue the path of a businessman, but only certain individuals can become entrepreneurs. This phenomenon occurs because the definition of an entrepreneur is indeed different from that of a businessman.
A person can be considered a businessman if they are involved in buying and selling or production activities aimed at making a profit. However, it’s different for an entrepreneur. You will find several definitions of an entrepreneur provided by experts. Some of these definitions include:
- Suryana, in his book Entrepreneurship: Tips and Processes Towards Success (2013), states that entrepreneurship is the process undertaken by an individual to apply creativity and innovation to find opportunities and solve problems.
- Hermawan Kartajaya explains that entrepreneurship is an effort to create value through observations of business opportunities. The efforts include risk management and mobilization of resources aimed at creating useful products.
- Abu Marlo, through Entrepreneurship Hukum Langit, reveals that entrepreneurship is the ability to identify and exploit opportunities to change the system. In the utilization of these opportunities, an entrepreneur will always consider the potential risks.
7 Characteristics that Distinguish the Definition of an Entrepreneur and a Businessman
From these differences in definition, you can already contrast the distinctions between an entrepreneur and a businessman. However, in practical terms, you may encounter difficulties in distinguishing between the two.
To understand their differences, here are 7 characteristics that you can use as a foundation:
Business Idea:
A businessman tends to engage in business with a mature concept practiced by other businessmen. On the other hand, an entrepreneur has a different perspective, choosing to implement a unique business idea.
Market Share:
In running their business, a businessman follows what the market desires. Meanwhile, an entrepreneur makes efforts to create their own market share. In the end, many businessmen strive to enjoy the market share created by entrepreneurs.
Decision-Making Process:
A businessman makes well-calculated decisions, always considering various factors that may affect the business. In contrast, an entrepreneur often makes decisions based on intuition.
Business Goals:
The primary goal of a businessman differs from that of an entrepreneur. A businessman aims to make a profit in running their business, while an entrepreneur focuses more on utilizing human resources. Entrepreneurs are less concerned about profits but pay more attention to the conditions of employees, customers, and the general public.
Competition Level:
A businessman will face high levels of competition, especially if they can only enter existing market segments and rely on conventional business ideas. Entrepreneurs, with unique business ideas and the ability to create market share, can operate with low competition levels.
Risk:
Businessmen and entrepreneurs also have significant differences in facing business risks. Businessmen aim to run low-risk businesses, while entrepreneurs manage risks and turn them into promising business opportunities.
Business Implementation Methods:
You can also discern the difference between the definition of an entrepreneur and a businessman from how they implement business methods. Businessmen often choose conventional methods to achieve their business goals, while entrepreneurs frequently use anti-mainstream methods in their business operations.
By paying attention to these characteristics, you can clearly understand the differences between an entrepreneur and a businessman, right? Businessmen are easily encountered in everyday life, while entrepreneur figures can be found among revolutionaries such as Mark Zuckerberg, Nadiem Makarim, Bill Gates, and others.
You can strive to become a successful entrepreneur like these revolutionary figures. One way to do this is by starting a creative business through a startup. For ease in the startup establishment process, you can use virtual office rental services from vOffice. It’s easy and practical!
