Difference between Entrepreneur and Entrepreneurship

Difference between Entrepreneur and Entrepreneurship

Difference between Entrepreneur and Entrepreneurship.| An entrepreneur is someone who puts the needs of society and tries to fulfill the same, with innovative ideas. On the other hand, Entrepreneurship is the process of forming a business entity, which intends to earn profit, in return for it in the future.

You might have heard of names like Bill Gates, Jeff Bezos, Steve Jobs, Mark Zuckerberg, Larry Page, Jack Ma and many more who made innovative and unique products that were given by them to the society. They are not businessmen, but Entrepreneurs because they have set up a business, offer innovative products and take risks in the hope of getting a profit in return in the future.

In this article, you will know the difference between Entrepreneur and Entrepreneurship in a more detailed way.

Definition of Entrepreneur

Entrepreneur refers to a person who conceives a creative idea and takes all necessary steps to turn the idea into a reality, such as taking the initiative to set up a new business enterprise by providing sufficient capital, land, labor and all necessary resources to produce the product, which he has in mind and assume all risks for future profits.

The company formed by an entrepreneur is usually a new company which can be understood as a direct manifestation of his idea. So, an entrepreneur is:

  • A beginner in a market that has something new to offer the public and is starting from scratch to build and run a company.
  • An innovatorwho has a thought-provoking idea or concept in his mind that has the ability to lead the market.
  • A developerwhich develops business models to shape ideas.
  • A leaderwho provides guidance and support to his subordinates to work in a certain direction or change the same (if needed) to achieve the target.
  • A responsible person on the success or failure of the business for the decisions it makes.
  • A promoterwho takes all relevant steps to turn dreams into reality.
  • A fortune tellerwhich predicts future opportunities and threats that can affect the business positively or negatively.
  • risk takerwhich has the ability to anticipate future risks and take risks if they are beneficial to the company.

Definition of Entrepreneurship

Difference between Entrepreneur and Entrepreneurship-2

Entrepreneurship is the process or activity, of starting, developing, managing and operating a new company while taking all the risks involved, thereby making a profit.

It is one of the four factors of production, the others being land, labour, capital. Now, we discuss the Entrepreneurship process as below:

  • Process: Entrepreneurship is a systematic, directed, creative and sustainable process carried out by an entrepreneur to run a business smoothly.
  • Innovation: Innovation is a key feature of Entrepreneurship, which creates a difference in the marketplace. Indeed, it helps companies to introduce products quickly, because almost no companies sell products in the market.
  • Network development: Develop strong relationships with parties such as suppliers, distributors, banks, debtors, creditors and many more, which are directly or indirectly related to business processes to have good value in the market.
  • Profit potential: Profit is something that keeps the organization running in fact, acts as a motivation for Entrepreneurs, to do better than before. So, before taking any decision regarding the company, priority is given to the profit potential, i.e. when taking it a step further, the Entrepreneur identifies whether it is profitable or not.
  • Forecasting Market Trends and future possibilities: Entrepreneurs must keep a close eye on future market trends and demand so that the company can continue to work to improve the products or services offered, and grow further.
  • Risk Assumptions: You may have heard the famous saying “no risk, no profit”, which means that the profit of a business depends on the risk factor. So, risks and rewards are inherent in the company; in fact, hardly any business survives without taking risks.

Key Differences Between Entrepreneur and Entrepreneurship

The difference between Entrepreneur and Entrepreneurship is discussed in the following points:

  • An entrepreneur is a person, or team of individuals, who has a vision, who not only makes money, but can also ease the way things are done by providing products and services that have value for customers while taking all the risks that get in the way. On the contrary, Entrepreneurship is the art of turning ideas into reality, which is not just about organizing resources to give shape to ideas but constantly making efforts towards it, to gain future profits and bear all the risks or rewards.
  • An entrepreneur is someone who has a unique and practical idea in mind. In contrast, Entrepreneurship is the process of starting and running a business providing creative products and services.
  • An entrepreneur is an innovator, because he contains innovative ideas that have not been introduced by anyone in the market. On the contrary, Entrepreneurship is the way through which, one can make innovations.
  • Entrepreneurs build business ventures to turn ideas into products or services that can help many people by simplifying the way work was done before. On the contrary, Entrepreneurship is about running a business and taking all the risks that get in the way of giving the right shape to the entrepreneurial vision.

From the above description, it may be clear that an entrepreneur is a person with a billion dollar idea who has the ability and willingness to shape that idea through the Entrepreneurship process. Entrepreneurs are known for their decisions that determine the fate of the company.