DIFFERENCES BETWEEN: ENTREPRENEUR, BUSINESSMAN AND EXECUTIVE

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The figure of the entrepreneur has a series of characteristics that differentiate him or her from the entrepreneur. In this tip we will identify these differences and then incorporate the figure of the executive into the analysis.  

Entrepreneur Vs Entrepreneur

Entrepreneur and entrepreneur have decided to to be self-employed and to make a living from their individual or entrepreneurial initiatives, and they have the necessary legal capacity to do so. Both are responsible for the debts of the business and, however, the profits they make are theirs alone.

Differences:

In reality, differentiating between an entrepreneur and an entrepreneur would be like differentiating between a foal and a horse. Someone defined the entrepreneur as the businessman with the L on his rear windscreen. In reality, they are two figures located around a company, albeit at different stages. 

• ITS OBJECTIVES

  • The entrepreneur: is concerned about your existing business, focuses on managing it and defining growth strategies, diversification, etc.
  • The entrepreneur: He struggles to consolidate his new business and cross the valley of death as quickly as possible.

• THE RISK

  • The entrepreneur: sees your risk decrease as your business grows and builds customer loyalty. Your business activity allows you to reduce your indebtedness.
  • The entrepreneur: has a higher risk perception because it does not have an established relationship with customers and therefore sales are not certain, and it may also depend on external sources of finance. 

• IN RELATION TO WORKERS

  • The entrepreneur: gHe had a hierarchy within his organisation, although this did not prevent him from being a leader and behaving as such.
  • The entrepreneur: is more of a fellow leader who needs allies to realise his dream.

• ITS RELATIONSHIP WITH MONEY

  • The entrepreneur: enderstands money as a way to grow his business. He also sees it as a reward for his efforts and is concerned about profits.
  • The entrepreneur: ne needs money to survive, to consolidate, and he takes risks to make it available. Although he also wants to make money, he knows that he is not going to get it overnight. He is not obsessed with short-term profits.

• HOW DO THEY SEE SUCCESS?

  • The entrepreneur: links success to profitability, employment and welfare of its employees, partners, customer satisfaction, etc.  
  • The entrepreneur: links success to the fulfilment of their dreams.

• TIME

  • Entrepreneur: ndoes not like to waste time and allocates it rationally by balancing his or her work and personal life. 
  • Entrepreneur: de devotes all his time to his project, without looking at the clock and without parties.

Executives VS entrepreneurs:

Having seen the commonalities and differences between businessmen and entrepreneurs, let us now look at the figure of the executive and subsequently the differences between entrepreneurs and executives. When companies enter a growth phase and reach a certain size, it is time to consider the possibility of separating management, or part of it, from ownership. It is then, when the employer takes on employees at managerial level. When the executive reaches the rank of maximum responsible is called the CEO, "Chief Executive Officer.

Let us remember that an entrepreneur is a person capable of risking something (effort, time and resources) to start up a business consisting of providing a service, in the sale of a product or both at the same time in exchange for a profit. An executive, on the other hand, is a person who works as an employee and is the person who facilitates the conditions for the organisation's resources to work towards the achievement of certain objectives.

The executive must be a well-rounded person ready, must possess a healthy sense of ownership of the company for which he or she works, and must be a person of loyalty, integrity and trustworthiness. Let's say that among the attributes of a manager is his or her ability to lead teams by bringing people together to achieve objectives. 

Differences:

• INTERESTS

  • The entrepreneur: acts according to its personal interests.
  • The Executive: acts in the company's best interests and tends to make the objectives of the organisation he or she works for his or her greatest obsession.

• TIME

  • The entrepreneur: is freer and has his time at his disposal and organises it in a more or less balanced way and can devote part of it to the search for more sources of income. 
  • The Executive: makes his or her time conditional on the salary received and focuses on fulfilling his or her duties and objectives.

• ITS RELATIONSHIP WITH CREDIT

  • The entrepreneur: resorts to credit in order to leverage their business for further growth.
  • The Executive: re turn to credit as a way to improve their quality of life: mortgage, house, car, credit cards, etc. The payment of their debts and the increase in wealth they obtain comes from the income they receive.

• THEIR ASSETS ARE DIFFERENT

  • The entrepreneur: pmay own a significant number of assets. However, these may be backing the investments of the business, which significantly increases its level of risk.
  • The Executive: tends to have smaller assets. They may react to a possible loss of income by looking for a new job.

I recommend see this related TIP (the changing ROLE of the entrepreneur as the company grows (see+)).

An entrepreneur, an entrepreneur and a manager are distinct roles in an organisation or company, and have differences and similarities between them.

DIFFERENCES

1. Functions: The entrepreneur is the person who sets up a company from scratch and manages the business. The entrepreneur, on the other hand, is the owner of the company and is in charge of the general management of the company. The executive manager is in charge of the operational management of the company and does not necessarily have to be an owner.
2. Responsibility: The entrepreneur is ultimately responsible for the success or failure of his business. The entrepreneur also has a great responsibility, but he/she has a management team that shares this responsibility. The senior executive is responsible for the operational management of the business in the area of his or her responsibility.
3. Decision-making: The entrepreneur is the key decision-maker in the company, while the entrepreneur and the manager make decisions in their area of responsibility.
4. Long-term vision: The entrepreneur has a long-term vision and seeks to grow his company. The entrepreneur also seeks to grow his company, but in a context of stability and profitability. The manager focuses on meeting the short-term objectives set by the entrepreneur.

SIMILARITIES:

1. Innovation: Entrepreneurs, business people and managers all seek innovation and continuous improvement in their respective fields.
2. Risk-taking: All roles involve risk-taking, albeit at different levels and in different contexts.
3. Leadership skills: All three roles require leadership skills in order to motivate and guide a team towards the achievement of objectives.
4. Knowledge of the market: All three roles need to understand the market in which they operate in order to make sound strategic decisions.

In a nutshell, while the entrepreneur is the creator of a company, the entrepreneur is the owner of the company and the manager is responsible for the operational management in his area of responsibility. Each has different roles, responsibilities and approaches, but they share similarities such as innovation, leadership skills and market knowledge.

The table presents the differences and similarities between the roles, capabilities, status and attitude of an entrepreneur and a manager:

• In terms of functions, the entrepreneur focuses on creating business opportunities, while the managerial executive focuses on solving day-to-day problems.
• In terms of skills, the entrepreneur has the ability to identify opportunities, while the manager has the ability to plan, budget and control.
• In terms of status, the entrepreneur is the employer and owner of his or her business, while the manager is a salaried executive and does not own it.
• In terms of attitude, the entrepreneur is proactive and subordinates time to opportunity, while the managerial executive is reactive, calendar-driven, short-horizoned and rigid.

Although an entrepreneur and an entrepreneur are often considered the same person in the case of small and medium-sized enterprises, there are differences between them. The entrepreneur launches projects that may or may not turn into companies, while the entrepreneur has an established business that creates jobs and profits on a sequential basis. On the other hand, A senior executive is the chief executive of a company and not necessarily its creator.

The entrepreneur often coincides with the entrepreneur, especially in the Mycropymes and Pymes 85% of companies in Spain for example. In other words, entrepreneur and businessman are the same person. The CEO is the top executive of a company and does not necessarily have to be its creator. 

An entrepreneur launches projects that may or may not become companies. An entrepreneur is in a more stable situation than a start-up, so we could interpret it as a consolidated entrepreneur. From the moment your start-up goes from being located in the garage (well, in Spain it would be the storage room at the most), starts to create jobs and profits, you become an entrepreneur.