Characteristics of an Entrepreneur

&Difference Between

Entrepreneur & Manager

Entrepreneur

A person who has decided to take control of his future & become self-employed-whether by creating his own unique business or working as a member of a “team”, as a multi-level marketing.

An Entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person who starts and operates a business is an entrepreneur.

Characteristics• Entrepreneurial Characteristics• Risk Taker• Perceptive• Curious• Imaginative• Persistent• Goal-setting• Hardworking• Self-confident• Flexible• Independent

•Entrepreneurial Characteristics

Not everyone wants to be an entrepreneur and run their own business. Being an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning.

•Risk Taker

Businesses face risk. Entrepreneurs minimize risk through research, planning, and skill development.

•PerceptiveEntrepreneurs view problems as opportunities and challenges.

•Curious

Entrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.

•Imaginative

Entrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas.

•Persistent

True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed.

•Goal-setting

Entrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.

•Hardworking

Entrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.

•Self-confident

Entrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have.

•Flexible

Entrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments.

•IndependentAn entrepreneur’s desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment.

Difference Between Entrepreneur &

Manager

1. Venture An entrepreneur sets up a new enterprise or undertakes a venture for his personal gratification.

A manager does not take a new venture and renders services in an existing enterprise.

2. Risk bearing An entrepreneur assumes risk of economic uncertainty involved in the enterprise.

A manager does not assume or share any risk involved in the enterprise he is saving.

Point of Difference Entrepreneur Manager

3. Reward The reward of an entrepreneur for his risk bearing role is profits.It is not only uncertain and irregular but can at times be negative also.

The reward of a manager for rendering his services is salary which unlike profits is fixed and irregular and can never be negative.

4. Continuity Entrepreneurial activities are discontinuous appearing to initiate change in the production process and then disappearing until another change is initiated.

Managerial activities are mainly continuous involving an ongoing coordination of business operation.

5. Innovation In order to maximize the profits, the entrepreneur applies innovation from time to time in the enterprise. Therefore; an entrepreneur is also called a change agent.

On the contrary, a manager simply keeps running the enterprise on already established lines on a routine basis. That is why a manager is called the product of change brought about by the entrepreneur.

6. Status-Role An entrepreneur is his own boss and enjoys an independent status as the owner of the enterprise.

By contrast, a manager is a servant i.e. salaried person serving in the enterprise of someone else i.e. the entrepreneur. Thus he is not independent but the dependent of the entrepreneur.

7. Prerequisites In consonance with the entrepreneurial role, an entrepreneur needs pre-requisites like mission, creative thinking, risk-bearing ability, etc.

But, a manger needs distinct qualification such as knowledge of human behavior, management theory, etc. Because, the managers are made not born.

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