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• More risk, more profit: Entrepreneurship involves the risk of failure, but successful entrepreneurs are often
courageous and ready to take risks. Taking risks can lead to greater financial success, as it allows entrepreneurs
access to more resources.
Difference between Businessman and Entrepreneur
It is generally assumed that an entrepreneur and a businessman are the same people but both of them have a
different approach for their business. A businessman uses traditional ways of doing business but an entrepreneur
goes for innovative ways of doing a business.
Let us see the main differences between the two:
Factors Businessman Entrepreneur
A businessman is a person who starts a An entrepreneur is a person who starts an
business based on an idea already existing enterprise with a new idea or concept. For
Meaning
in a society. For example, opening a example, selling products through online
grocery shop, mobile shop, etc. services.
Market Player who creates his own place in
Market Status Market Leader who creates his own market.
the existing market.
Risk Factor Risk factor is less. Risk factor is high.
Businessman follows traditional Entrepreneur follows unconventional
Procedures
procedures. procedures.
Competition High. Low.
Focus Profits. Customers, employees, profits and society.
At a Glance
• A business is a state of being busy as an individual or as an organisation in a profit earning economic activity.
• The main objectives of a business are to meet economic, social, employee and national goals.
• There are three types of businesses: Product, Services, and Hybrid.
• An Entrepreneur is a person who invests his time, energy and money to initiate an exclusive idea for a new venture.
• Entrepreneurship is the act of executing an innovative idea in a business.
• The output of the innovative process of setting up a business is called an enterprise.
• The main elements of entrepreneurship are: Innovation, Organisation, Risk Bearing, and Perception.
• Entrepreneurs help in increasing foreign exchange reserves of the country, thereby increasing economic development.
• An entrepreneur should have good social skills to build his network of potential investors, suppliers, customers, and
creditors.
• Feeling a large responsibility for the business may sometimes be scary and brings a lot of mental instability. Funds
management, unpredictable market, employees' reactions and sometimes less time for family may lead to emotional
setback for an entrepreneur.
• An entrepreneur lives his own dreams. He can pursue what he is passionate about in his life.
Entrepreneurial Skills-I 131

