Introduction to Entrepreneurs and Manager
The term ‘entrepreneur’ is highly contrasted with the term ‘manager’, they both are the key persons in an enterprise which help the organisation to grow. Although both the terms are similar but have different functioning in an organization.
Both Entrepreneurs and Managers facilitate control and management of the company, but are differentiated in terms of individual idea, skills or courage with management and operating functions. In this article, we will discuss comparison between entrepreneurs Vs. managers.
Entrepreneurs Vs. Managers Comparison
The debate is between the Manager and an Entrepreneur, A manager is the leader within an already established organization who oversees or spectates the work of other employees within the same department or sometimes at a larger segment of the organization.
The managers assign tasks to the employees working under him, provide guidance to them, also troubleshoot their problems and ensure that the work deadlines are met. Irrespective of the fact that they are given more responsibility and subsequently higher pay scale, they are still an employee of the company and are accountable to a supervisor or to the company owner.
In contrast to the managers, there are entrepreneurs. These people identify a consumer problem and try to find a solution immediately, then this solution is added to their strategy model which eventually builds their business. They pitch an idea for a product or service, they develop the product, formulate a company around its sales and marketing and assume all the financial risks associated with starting and running of the business as the business model is now the responsibility of them.
They moreover hire additional employees to help in the various departments of the company, but they ultimately fulfil versatile roles as an owner, manager and entrepreneur by making sure the business follows their set design and mission.
Who is a Manager?
A manager is a person who takes the responsibility for a specific part of a company, they manage the company. Managers are in charge of various departments including the people working in it. The manager is in charge of the whole business. For example, a ‘showroom manager’ is in charge of the whole showroom.
Managerial functions primarily are only performed by the managers in the company to execute their work. They hold the power to hire, fire, maintain discipline, give performance appraisals, and also monitor attendance. In addition, they should also approve overtime work to the employees, and authorize their vacations as well.
Who is Peter Drucker?
Known as the ‘Father of Management Thinking’. Peter Drucker was the most renowned and influential thinker on management study. Drucker’s work continues to be used by the managers worldwide. Also, a prolific author, Peter Drucker among the first to illustrate management as a distinct and separate function and being a manager as a specified responsibility. In his writing, he talked of real understanding of managerial functions and sympathized for the hurdles faced by the managers.
Throughout his fledged career he also acquired interests as journalism, art appreciation, mountaineering, reading - drawing inspiration from the works of the famous Jane Austen - and, no doubt in management teaching, writing and management consultancy. 39 books were published over the past seven decades also translated into at least 30 languages and many books written in honour of this individual since his death. In common consent, he was regarded as the founding father of modern management studies.
Who is a Good Manager?
Good managers are always excited about the company where they are working and they positively communicate to their employees working under them in the company. They try to maintain a healthy and kind corporate culture, they are the reason why the company is unique among others. Good managers prioritize their tasks and lead their department by making not so easy decisions. They also need to be people oriented as well, not only focused on driving forward the tasks, but also listening to employees' concerns. Other good character traits in a manager include a gentleman personality, honesty and the ability to take up responsibility and hold themselves and also others accountable for their actions.
Both Entrepreneurs and Managers are equally important for an organization to foster.
FAQs on Entrepreneur vs. Manager: Roles and Differences
1. What is the primary difference between an entrepreneur and a manager?
The main difference lies in their core function and risk level. An entrepreneur is an innovator who starts a new business venture, taking on significant personal and financial risks. A manager, on the other hand, is an employee who runs an existing business, focusing on efficiently using the company's resources to achieve its goals with minimal risk.
2. What are the main roles and responsibilities of a manager in a company?
A manager's responsibilities are focused on ensuring the smooth and efficient operation of the business. Their key roles include:
- Planning: Setting goals and deciding on the best course of action to achieve them.
- Organising: Arranging resources like people, materials, and finances to implement the plan.
- Directing: Leading, motivating, and supervising employees to carry out their tasks.
- Controlling: Monitoring performance to ensure that the results align with the set goals.
3. What key skills are most important for a successful entrepreneur?
A successful entrepreneur needs a unique set of skills to build a venture from scratch. Some of the most crucial skills are:
- Innovation and Creativity: The ability to see new opportunities and create unique products or services.
- Risk-Taking: The courage to invest time and money into an uncertain idea.
- Resilience: The strength to handle failures and setbacks without giving up.
- Leadership: The capacity to inspire and lead a team towards a common vision.
4. How do the motivations of an entrepreneur differ from those of a manager?
Their motivations are quite distinct. An entrepreneur is primarily driven by internal factors like the desire for independence, personal achievement, and the passion to bring a new idea to life. A manager is often motivated by external factors such as salary, job security, promotions, and the power associated with a position in an established company.
5. Can an entrepreneur also be a good manager?
Yes, an entrepreneur can become a good manager, but it requires developing a different set of skills. While an entrepreneur excels at innovation and vision, a manager excels at planning and organising. As a business grows, the founder must either learn these management skills or hire a professional manager to handle day-to-day operations effectively.
6. In what situation does a business need a manager more than an entrepreneur?
A business needs a manager more than an entrepreneur once it moves beyond the initial start-up phase and becomes stable. At this stage, the primary focus shifts from creation and survival to efficiency, optimisation, and controlled growth. A manager is essential for creating structured processes and ensuring consistent performance for long-term success.
7. Can you provide a real-world example to illustrate the difference between their approaches?
Certainly. Imagine a new food delivery service. The entrepreneur is the person who had the original idea, perhaps using drones for delivery. They took the risk to build the company. The manager is the person hired later to handle daily operations, such as creating staff schedules, optimising delivery routes for fuel efficiency, and ensuring customer orders are correct.
8. What is an 'intrapreneur', and how does this role differ from both an entrepreneur and a manager?
An intrapreneur is an employee who acts like an entrepreneur inside a large organisation. They are encouraged to be innovative and develop new projects. Here’s the difference:
- An entrepreneur starts their own company and bears all the risk.
- An intrapreneur innovates within an existing company, using its resources, so the risk is much lower.
- A manager focuses on executing existing business plans, not creating new ventures.
