Business

What Is The Difference Between An Entrepreneur And A Businessman?

A businessman (businessman, businesswoman) is somebody involved in the business field in particular somebody undertaking activities (economic, commercial, and social) to create money flow, sales, income, and/or revenue. Some businessmen are highly specialized in a particular area while others are generalists who can manage several small businesses. In most countries, businesses are led by a handful of entrepreneurs who have access to markets, banks, resources, etc. Most businesses are generally started and managed by an individual or a group of individuals who form a syndicate or corporation for the common good of the business. However, many other businessmen work as part-time workers to supplement their incomes or make ends meet.

 

In economic terms,

the term businessman refers to a dealer who buys and sells goods or provides services to customers. The services offered by the businessman may be physical (selling his products and services) or non-physical (making repairs to the customer’s goods). A businessman is the market leader in a country. This market leader is not necessarily the largest but the most economically, socially, and culturally established in his area of operation. For instance, in the United States, the businessman is the largest employer yet he takes the position of the market leader because he has a firm establishment that employs tens of thousands of people.

 

In business terms,

entrepreneur refers to the dealer or the market player who purchases raw materials, plants, resources, etc., and then promotes or otherwise manages the production of surplus products or services. The primary role of the businessman is to take risks to start a business. The primary responsibility of entrepreneurs is to use their own money to take risks. The biggest difference between an entrepreneur and a businessman is that the latter needs to raise funds to start a business while the former does not need to raise any funds at all. Entrepreneurs are usually self-employed, unlike businessmen.

There are several similarities

between the entrepreneur and the businessman. They both rely on personal initiative and risk-taking ability to launch new ventures. The main difference between the two is that the businessman is a direct market player market leader whereas the entrepreneur is usually a medium or indirect market leader who guides others to take the risk of buying his products/services. In business, there is competition and the entrepreneur has to differentiate himself from the rest of the players by having the strategies, techniques, products, and services that differentiate him from others. He needs to be able to distinguish himself from the mass market.

 

The entrepreneur

usually has the option of either selling his own products/services directly to customers or selling his products/services through a distribution system like retail stores, wholesalers, and manufacturers. Sales by retailers represent a small percentage of his sales but represent huge savings and allow him to increase the number of his sales. As for a distributor, he has to pay money to manufacturers to distribute his products/services directly but he has more control over the supply chain.

 

In summary,

an entrepreneur is the direct product market leader while a businessman is a medium or indirect market leader who guides others to take the risk of buying his products/services. While the businessman needs funding to start-up, an entrepreneur needs only sales to survive. Both are successful in their ways. The key is to differentiate yourself from the competition.

Leave a Comment

Your email address will not be published. Required fields are marked *