Difference between an Entrepreneur and a Manager

Difference between an Entrepreneur and a Manager


Basis of Difference Entrepreneur Manager
1. Motive The main motive of an entrepre­neur is to start a venture by setting up an enterprise. But, the main motive of     a manager is to render his services in an enterprise already set up by someone else i.e., entrepreneur.
2. Status An entrepreneur is the owner of the enterprise. A manager is the servant in the enterprise owned by the entrepreneur.
3. Risk Bearing An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in run­ning the enterprise. A manager as a servant does not bear any risk involved in the enterprise.
4. Rewards The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. A manager gets salary as reward for the services rendered by him in the enterprise. Salary of a manager is certain and fixed.
5. Innovation Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a ‘change agent’ A manager simply execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur’s ideas into practice
6. Qualifications An entrepreneur needs to possess qualities and qualifications like high achievement motive, origi­nality in thinking, foresight, risk -bearing ability and so on. On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice.
7. Focus


An entrepreneur is someone who is concerned primarily with the necessary components to start up a business A manager is typically concerned with sustainability, and has to focus on what can be done within the framework of what he has been given to work with in an existing enterprise.


8. Growth


An entrepreneur begins with the idea of the business from its inception and its potential for growth in the long run. An analysis of the market and available resources in relation to the original idea plays a primary role in his business decisions. A business manager is focused on engendering growth based on available resources. A manager must get employees to perform at optimal levels, and must make use of non-human resources to create additional growth beyond basic sustainability

Entrepreneur’s objective is to innovate and create and he acts as a change agent.

Manager’s objective is to supervise and create routines. He implements the Entrepreneur’s plans and ideas.

Difference between an Entrepreneur and a Manager

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