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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.


                                                             Exercise




                                                   SECTION A (Objective Type Questions)
                      uiz

                A.  Tick ( ) the correct option.
                    1.  Which of the following terms describes a type of employment where an employee receives fixed compensation in the
                       form of wages or salary from an employer?
                       a. Wage employment                                b. Entrepreneur
                       c. Manufacture                                    d. None of these

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