5 Differences Between An Entrepreneur And A Manager!!!

An entrepreneur is a person with the skills, ideas and courage to take risks to pursue a business idea. A manager is a person who manages the functions and operations of an organisation. The significant difference between an entrepreneur and a manager is their role in an organisation.

An entrepreneur owns a company, while a manager is the company employee. An entrepreneur is a risk taker who takes financial risks for the enterprise. A manager does not take risks and tries to maintain the status quo of the enterprise.

Meaning of Entrepreneur
Entrepreneurs establish a new organisation by assembling inputs, i.e., labour, land and capital, for production purposes. They assume risk and business uncertainty to achieve growth and profit of the business venture by combining resources and identifying new opportunities to capitalise on them. They innovate new business processes and ideas. They are persons responsible for building an organisation and taking business risks for profits.

Example: An entrepreneur is the company’s CEO who establishes the company and takes business risks to gain profits.

Meaning of Manager
Managers are responsible for the administration and management of a group of people or a department of the company. Their day-to-day job is to manage employees and ensure the smooth running of the organisation. They must possess similar qualities of an entrepreneur, like accountability, leadership, decisiveness, etc. They must also have qualities such as empathy and warmth. They may direct supervisors who will command workers or directly command workers. They are responsible for supervising subordinates, who report to and work under them.

Example: A manager is the head of a department in a company, such as a director or a team leader, who administers the group of people under him/her and ensures the company runs smoothly.