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Naina is an executive manager in a multinational corporation. While she enjoys leading her team, implementing rules and allocating budget, she wants to quit her job and transition into being an entrepreneur. The thought of giving shape to the new business idea she has been toying with excites her. However, her sister disagrees with her plans. She feels Naina shouldn’t let go of a well-paying and stable job to venture into the unknown.
Who do you think is right? Before Naina and her sister begin an epic match of entrepreneurship vs management, let’s first understand what each position means to be able to spot the difference between an entrepreneur and a manager.
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Who Is An Entrepreneur?
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Who Is A Manager?
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Difference Between Entrepreneur And Manager
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Cultivate An Empathetic Leadership Style
Who Is An Entrepreneur?
An entrepreneur is an individual who transforms their innovative business ideas into action by setting up a new business venture. To that end, entrepreneurs need to be prepared to take substantial risks that go beyond financial concerns. They determine the scope of their business, establish a target market segment and hold themselves accountable for the success or failure of the venture.
An entrepreneur has to be confident, creative and open-minded to be able to steer their business in the right direction, enjoy the rewards it reaps and embrace new opportunities for growth. They need to solve problems and make important decisions in a time crunch—all while hiring the right talent and ensuring proper funding.
Who Is A Manager?
A manager is an individual who oversees and manages the departments, people and resources within an organization. Their responsibilities include making hiring decisions, directing projects, assessing employee performance through performance appraisals and monitoring project timelines and budgets.
A good manager is not only an excellent communicator but also patient and empathetic while dealing with employees. They know how to delegate tasks effectively, motivate their employees and take responsibility for both their own and their team’s actions. There are various tiers of management in an organization, each with its own specific area of focus—administrative or top-level management, executive or middle-level management and supervisory or lower-level management.
Difference Between Entrepreneur And Manager
When it comes to entrepreneurship vs management, there’s a significant difference between entrepreneurial functions and managerial functions. Now that we know what being an entrepreneur and a manager means, let’s explore entrepreneur and manager difference:
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Position
The primary difference between an entrepreneur and a manager that arises while examining entrepreneurship vs management is in terms of their position. An entrepreneur is the owner of a business venture. They are responsible for the entire business, its reputation, the financial burden it endures, the rewards it enjoys and its market position. A manager, on the other hand, is an employee of an organization. They are concerned with administration and control within the organization.
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Scope Of Work
The primary difference between entrepreneurial functions and managerial functions is in the scope of work. An entrepreneur has a much larger scope of work that includes deciding a direction for their business, analyzing and forecasting changes in the market, addressing fluctuating customer needs, establishing strategic partnerships and tracking business opportunities to grow their venture. A manager’s scope of work involves overseeing departments and teams, guiding employees, allocating resources, taking ownership of projects and adhering to project timelines. A manager assists an entrepreneur in successfully running the business by shaping a positive work environment, making hiring decisions and leading teams to meet targets.
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Risk Involvement
Involvement in risks is another prominent entrepreneur and manager difference. Entrepreneurship involves a significant amount of risk-taking. Often, entrepreneurs forgo a steady income to pursue their business idea, taking calculated risks to establish and expand their business. Financial, strategic and market risks are part and parcel of entrepreneurship, not to mention competitive and economic risks. A manager doesn’t share any risk associated with the organization they are a part of. Their job is to ensure smooth workflow within the organization.
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Remuneration
Another significant entrepreneur and manager difference is in terms of remuneration. An entrepreneur lives off the profits their business venture acquires. A successful month equates to greater profits for entrepreneurs. But when business is slow, they also need to bear the burden of loss. A manager, being an employee within an organization, has a fixed salary that they enjoy every month. In other words, a manager’s income within an organization is fairly certain unlike an entrepreneur’s.
Apart from these, decision-making is another key difference between entrepreneurial functions and managerial functions that emerges while analyzing entrepreneurship vs management. Entrepreneurs swear by intuitive decision-making, while managers rely on calculative decision-making.
Cultivate An Empathetic Leadership Style
While there’s a significant difference between an entrepreneur and a manager, the positions are also similar in a few aspects. Both entrepreneurs and managers possess excellent time management, delegation and interpersonal skills. They’re also adept at problem-solving and guided by set goals and objectives. These are a few similarities between an entrepreneur and a manager.
Among the other key similarities between an entrepreneur and a manager is leadership. Whether you’re an entrepreneur or a manager, you need to know how to lead a diverse group of people with different backgrounds, viewpoints and interests. You also need to be able to understand the needs of your employees and be aware of their thoughts and opinions.
Here’s where Harappa’s Lead With Empathy pathway can help. It’ll help you build a great team culture and foster a sense of belonging and loyalty within your team. With Thrive Skills such as Navigating Conflict, Outcome Orientation and Skillful Teamwork, you’ll not only be able to establish trust among team members but also develop a positive work environment where employees can exceed expectations. Want to become a true people’s leader? Sign up today for Harappa’s Lead With Empathy pathway and cultivate an empathetic leadership style.
