Entrepreneur vs. manager: What roles do they do?    Â
Benjamin LyngdohÂ
Email – benjamin21in@yahoo.co.in
In many cases, it is found that there is some confusion and/or misunderstanding as to the roles of an entrepreneur and a manager. This mix-up is to be cleared at the earliest especially for those who are seriously looking at entrepreneurship as a career option. It gives a person a sense of purpose and direction in their entrepreneurial efforts. So, the question that begs an answer is what do entrepreneurs do and how are their roles different from that of a manager? If we can differentiate this, then we are on the right track. Â
It is true that there are similarities between an entrepreneur and a manager. Both are involved in a business enterprise and are interested in its growth and well-being. Both are professional in their approach towards work and are deeply concerned about the quality of goods and services being offered to the consumers. However, this similarity is simply functional as it lays importance only on the daily business activities. Â
In terms of roles, there is a significant difference between the two. This can be understood better by analysing the table below –
| Entrepreneur | Manager |
| Focuses upon | |
| People and their abilities | Things and their use value |
| Spontaneity and flexibility in operations | Structure and set designs of operations |
| Empowerment | Control |
| Effectiveness and outcomes of efforts | Efficiency and execution of plans |
| Programmer as in the person | Program as in the schedule |
| Long-range perspective | Shorter-range perspective |
| Asks big questions like what and why | Asks small concerns like how and when |
| Originates and is innovative | Imitates and just follows |
| Transformation | Transaction |
| Doing the right things | Doing things right |
The above table highlights that the role of an entrepreneur is more extensive in scope as compared to a manager. The entrepreneur is more focused on people and what people can do rather than on things and assets of a business. His/her mindset is more focused towards the competition that is there in the market rather than on the internal matters of running a business. He/she is more concerned about development and expansion of the business in the long-term as against the daily affairs of the business. Hence, an entrepreneur is a person who leads from the front, innovates, develops, focuses on people, inspires trust, thinks long-term, challenges the status quo and does the right thing. He/she aims to help others to achieve their personal best by setting realistic performance goals, finding ways to improve procedures and striving for quality in all areas. In essence, an entrepreneur is a leader and he/she communicates, motivates and creates excitement at the workplace.
It can be said that entrepreneurs are captains of industry and development. Now, there are entrepreneurs who are able to function as managers as well. But, not all managers can function as an entrepreneur too. As such, it is commonly said that all entrepreneurs are managers too but all managers may or may not be entrepreneurs as well.
In the end, look at transformation and transaction (as mentioned in the table). Entrepreneurs try to transform a business from a small business to a bigger one with the passage of time by dealing with the competition present. Managers are only interested in the daily and internal transactions of the business and ensure efficiency in its operations.
Let us look at an example to understand better. Take Facebook (now known as Meta). The name Mark Zuckerberg is synonymous with it. Now, Mark Zuckerberg is an example of an entrepreneur. He is not a manager. There are other people under him to manage the day to day affairs of Facebook. He does not have to worry much about the internal management issues. As an entrepreneur, Mark Zuckerberg is totally focused on the important challenges of dealing with completion and expansion and providing better products and services to the consumers. He is more focused on creating a vision for the future of facebook and the goals that facebook has to achieve. He is a leader and the others just follow.
So, what role are you interested in? Is it that of an entrepreneur or a manager? Assess yourself! Try to fit yourself into the role of an entrepreneur.
The comparison between entrepreneurs and managers is insightful, as it highlights their distinct roles and priorities. Entrepreneurs seem to be visionaries, focusing on long-term growth and market competition. On the other hand, managers appear to be more concerned with the day-to-day operations and efficiency of the business. This distinction helps clarify how each role contributes uniquely to a business’s success. How does understanding these differences help in building a more effective organizational structure?
It’s interesting to see how entrepreneurs and managers differ in their roles and focus. Entrepreneurs seem to have a broader vision, prioritizing innovation and long-term growth, while managers concentrate on daily operations and efficiency. This distinction highlights how both roles are essential but serve different purposes in a business. The example of Facebook could further illustrate how transformation and transaction play out in real-world scenarios. How do you think these roles complement each other in driving a business forward?
The comparison between entrepreneurs and managers is quite insightful, especially when considering their distinct roles within a business. Entrepreneurs seem to focus on long-term growth and innovation, while managers prioritize daily operations and efficiency. This distinction is crucial for understanding how businesses evolve and sustain themselves in competitive markets. It’s fascinating how entrepreneurs inspire and lead, driving transformation rather than just managing transactions. Do you think a successful business requires both roles to function effectively, or can one outweigh the other in terms of importance?
The comparison between entrepreneurs and managers is quite insightful. Entrepreneurs focus on innovation and long-term growth, while managers prioritize day-to-day operations. The example of Facebook demonstrates how entrepreneurial vision can transform a small idea into a global platform. This distinction is crucial for understanding leadership dynamics in business. How can organizations balance both roles effectively?
interesting comparison between entrepreneurs and managers. The focus on long-term vision versus daily operations is well-explained. It really shows how both roles contribute differently to business success. Entrepreneurs truly drive innovation and change in the market.
What other notable examples can highlight this distinction between entrepreneurial and managerial roles?