The Difference between a Businessman and Entrepreneur

What is the difference between a businessman and an entrepreneur? Are there really differences between

doing business and doing entrepreneurship? We often hear and read these two terms used interchangeably

and we often think that they are just two things with the same meaning. When we do business, we can easily

call ourselves business persons. Sometimes, we also call ourselves entrepreneurs, thinking that we are into

the venture of entrepreneurship. But when can we really call someone a businessman and how can we really

identify a person as an entrepreneur? They just seem to be indifferent since they both own a business. Let us

further clarify these two things to properly label ourselves or someone if he’s a business or an entrepreneur.

A business can be classified according to ownership structure, such as proprietorship, partnership or

corporation. Thus, a businessman can be called as a proprietor, partner or a stockholder. Businesses can also

be categorized according to industries, such as trading, servicing and manufacturing. On the other hand,

entrepreneurship also comes in different forms. It can be in these revolutionary forms, such as social

entrepreneurship, ecopreneurship, technopreneurship and infopreneurship. Thus, an entrepreneur can also be

called a social entrepreneur, ecopreneur, technopreneur, or infopreneur.

Just by classifying a businessman and an entrepreneur, you can already have an idea on the distinction of the

two. Yes, an entrepreneur is more innovative and revolutionary than the traditional businessman. But this

dissimilarity is only one of the many divergences between a business person and an entrepreneur. The

following is a list of the differences between a person who is merely doing business and one who is doing

entrepreneurship.

Businessman or business person Entrepreneur

1. Starts a business from an existing idea or

concept

Starts a business from his own unique idea or

concept

2. Has many business rivals His business rival is himself

3. Focuses on competition Focuses on cooperation

4. Is always busy on his business “busy-ness” Is only busy in preparing his new enterprise

5. Don’t have enough time for his family and Have a lot of time for his family and personal life

personal life

6. His business gives him a living He gives life to his business

7. Traditional Innovative and revolutionary

8. Stays safe Risk taker and accountable

9. Worried Excited

10. Profit oriented People (i.e., employee, customer, public) oriented

11. Has an active income or profit Has a passive income or profit

12. Hire people to increase business

productivity

Hire people to give them productivity

13. A market player A market leader

14. Has not yet achieved financial freedom Has achieved financial freedom

15. Only gives importance to a part of the

business world (atomistic)

Gives importance to the business world as a whole

(holistic)

 

From the comparisons above, we can learn that entrepreneurship is not an easy feat compare to merely

doing business. We can also realize that an entrepreneur is a business person who has evolved into a more

complete person – one that is not simply a business person but a real human being. Being a businessman is

good. Being profit oriented, market player, business competitor, traditional, busy and active income earner

is not bad since all business owners have been on those stages. Even the successful entrepreneurs, before

they succeed, have been into that. It is just that they have taken the right move to evolve into a better and

even the best businessmen that they can be. That is why they become not only businessmen, but rightfully

they become entrepreneurs. So, how about you? Are you a businessman or an entrepreneur? Are you merely

doing business or are you taking it into a higher level, which is called entrepreneurship?