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Manager vs Entrepreneur




No, both are not the same. Maybe some skillsets are the same, but some are different.

An entrepreneur is the owner of the company whereas a Manager is the employee of the company. An entrepreneur is a risk-taker, they take financial risks for their enterprise. The role of an entrepreneur is to spot opportunities, set an idea into motion, and accept some form of financial risk.

The manager’s role is to guide the ongoing operation to deliver the products and services smoothly, timely, and efficiently. Directing people and making sure people perform to the best of their abilities. The leader is focused on what is happening inside the company. For the manager running a business fits like a glove.

Meaning : An entrepreneur is a person or group of persons, who carry out activities relating to the establishment of industry, and innovations. The manager is the person who himself works for achieving the common objectives and also gets the work done from others.

Status : The entrepreneur is in the status of the owner. The manager or organizer is the status of the employee.

Functions : The main function of the entrepreneur is to undertake the risks in the establishment of new industries and activities related to innovations. The main function of the manager is to manage various sources of production and to establish coordination between them.

Rewards : Profit is the reward for the entrepreneur, but he may have to incur losses also. Salary is the reward of the manager and there are no possibilities of losses to him.

Responsibilities : The responsibility of the entrepreneur is much more because policies are determined by him and he is also the owner of the industry or business. The responsibility of the manager is much lesser than that of an entrepreneur because his function is to implement the policies formulated by the entrepreneur and that too in the capacity of an employee.

Concern with Time : The entrepreneur is associated with the present and future, both, because he has to keep both in view, during the operation of the industry. The manager is more concerned with the present because he has to keep the management and control of the industry, in view.

Control : The final control of various activities of the industry is of the entrepreneur. Control of the managers is on activities related to management, provided powers have been delegated properly. But, the final control is of an entrepreneur.

Conclusion : Entrepreneurs are the owners, whereas managers are the employees. The function of the entrepreneur is to undertake risks and uncertainties, and take risks in the innovations, whereas the functions of the manager are to manage and coordinate various sources of work production.

Profit or loss is the reward of the entrepreneurs, whereas salary is the reward of the manager.

There are some similarities between managers and entrepreneurs. The entrepreneur is different from the capitalist and manager, due to various reasons. The main function of the entrepreneur is to take risks, whereas the function of the capitalist is to make capital available. The Entrepreneur earns the profit in return for his service and risks, whereas the capitalist gets interested in capital invested by him. Besides, the income (profit) of the entrepreneur is quite uncertain, whereas the income (interest) of the capitalist is certain. Hence, the entrepreneur is different from the capitalist and the manager.

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