Businesswoman versus Entrepreneur

A businessperson makes his/her place in the market with his/her efforts and dedication and is considered a market player, whereas an entrepreneur creates the market for his/her unique business and is considered a market leader. Since a businessperson follows the paths created by other businesspersons, the possibility of failure is very less. This is the opposite in the case of an entrepreneur. He or she faces a lot of risks. 

Most people use the terminologies, businessman and entrepreneur, interchangeably. However, if you are a woman (or for that matter a man) who is aspiring to start a money making venture of your own, you need to understand the cardinal differences between an entrepreneur and businessperson.

A businessman/woman is a person who sets up his/her business as a new entrant to the market (in an existing market) on commercial or industrial grounds. Whereas, an entrepreneur is someone who comes up with a unique idea or a concept to start an enterprise and makes it into a reality. So if you want to open a clothing store or a food joint you are basically aspiring to set up your business. However, if you want to establish a (unprecedented) forum for artists and writers where they can enter into mutually beneficial commercial collaborations you are an aspiring entrepreneur.

Elaborating on some key differences between an entrepreneur and businessperson, Seema Kakoti, who works in a firm that provides financial support to entrepreneurs says, "Most businesspersons go for businesses with a high demand, which ensures huge profits, often disregarding the uniqueness of business ideas. In contrast, entrepreneurs establish startup companies by adopting innovation, new ideas or business processes. They are always willing to take risks and meet uncertainties of the business."

In other words, a businessperson basically disregards the uniqueness of the business ideas and instead prioritizes on producing the products or services with higher demand. "Therefore, a businessperson invariably has to face tough competition. This is because there are hundreds of competitors already existing in the market, conducting the same business. However, the risk factor to collapse is low as he/she is following a path that is already taken by others," shares Kakoti.

Essentially, the main goal of a businessperson is to employ his/her available human, intellectual and financial resources in such a way that it would ensure the maximum production possible and the flow of high profits. "On the other hand, an entrepreneur uses his/her skills and takes the necessary initiative to recognise the needs of the customers and introduce new ideas to the market. Therefore, entrepreneurs are significant to any economy," explains Kakoti.

Entrepreneurs that prove to be successful in taking on the risks of creating startups are rewarded with profits, fame and continuous growth opportunities. However, entrepreneurship that fails results in losses and has less possibility of survival in the markets. All in all, entrepreneurs are known for their creative approach in contrast to the profit-based approach of businessmen.

There are some similarities between an entrepreneur and a businessperson. "Businesspersons and entrepreneurs act as decision-makers. Both have managing abilities and can perceive and project forward. Both possess great time management, organisational and monitoring skills," states Kakoti.

Stating the obvious differences, she states, "A businessperson makes his/her place in the market with his/her efforts and dedication and is considered a market player, whereas an entrepreneur creates the market for his/her own business and is considered a market leader. A businessperson is naturally calculative, while the basic nature of an entrepreneur is intuitive. Since a businessperson follows the paths created by other businesspersons, the possibility of failure is very less. This is the opposite in the case of an entrepreneur. He or she faces a lot of risks."

The methods used by an entrepreneur to run his/her business are quite unconventional compared to those employed by a businessperson. "Moreover a businessperson has a profit-oriented approach while an entrepreneur gives more importance to the employees, customers and the public. Also compared to an entrepreneur, a businessperson faces extreme competition as he/she happens to compete in an already existing market. Last but not the least, generally most businesses thrive on competition while entrepreneur lead ventures generally are more open to collaborations," concludes Kakoti.

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