We all assume that being a businessman or an entrepreneur is one and the same thing, but the fact remains that these terms refer to very different individuals with different approaches to business. The start-up revolution in India is being led by entrepreneurs who have fresh ideas, innovation and passion with an aim to make breakthrough changes. While businessmen are people who engage in economic activities for the sole purpose of earning a profit.
Let us now list ten important differences that set aside an entrepreneur from a businessman.
- Creating own path
Entrepreneurs are revolutionary, who create a new set of rules, markets and ways of business for others to follow whereas businessmen adopt the ideas from successful entrepreneurial ventures.
- Playing safe
Entrepreneurs are risk taking as their idea and its execution are more important to them than making money. Businessmen play it safe by taking minimum risks and investing in avenues that are well tried and safe.
- Goals and objectives
The aim of businessmen is to generate profits and business expansion, whereas entrepreneurs are driven by an idea. They care less for the end result in terms of money.
- Unconventional v/s traditional
Entrepreneurs explore unconventional products and services to fulfill the needs or pain points that are still unaddressed in the society. Businessmen are more traditional in approach and carry the business the way it has been done over generations or by the rulebook of current competition.
Businessmen follow a well-set path created by other businessmen in terms of products, services, organization, and structure of a business, but entrepreneurs bring their unique ideas concerning product, services or simply the way business is done.
Financing is the biggest hurdle for entrepreneurs as their ideas are new and riskier. But the emergence of online financing partners such as FlexiLoans now gives the much-needed access to small business loans and collateral free loans. Businessmen usually rely on their own profits or traditional sources such as bank loans to raise funds.
- Profit v/s people
Entrepreneurs are more focused on the well-being of people working for and with him. But for businessmen, business and profits come first. They may take care of their employees, but they are not a priority for them.
Businessmen face stiff competition, both from other businesses as well as entrepreneurship. On the other hand, entrepreneurs have a nil or a few competitors other than themselves as their ideas are new and unexplored.
- Work-life balance
While work-life balance is difficult for both businessmen and entrepreneurs, the former run by the clock. They usually have fixed open and shut hours, and do not want to go beyond their call of duty. Entrepreneurs put their heart and soul into nurturing their products, services, and customers. They burn the midnight oil, without thinking much about spending time on personal leisure or with family.
- Happiness and fulfillment
Entrepreneurs are driven by the excitement of the business and idea. Further, their indifference to material success actually makes them happy individuals. Businessmen are usually calculative and always anxious about profits and losses.
Entrepreneurs revolutionize the industry while redefining the rules of business. A great example of entrepreneurship is the tech-driven online private lending company such as FlexiLoans. They have proven to be a boon for start-ups as well as SMEs to raise quick, hassle-free, collateral-free loans and small business loans with minimum paperwork and on flexible terms and conditions.