Entrepreneur Vs manager: No matter what people say, these two are completely different skillsets. At times, a manager might display the characteristics of an entrepreneur and vice versa. However, the roles, their expectations and purpose are completely different. They are expected to take on different persona and the corresponding characteristics are different. As an entrepreneur, I gravitate more towards the definition of an entrepreneur and at times can sound harsh about a manager. But the roles are highly important and enable success in an organisation.
Differences between Entrepreneur and Manager
An entrepreneur is someone who creates a business. This person undertakes the role of a founder, creator and innovator. They also act as a conductor of the business and behave as managers too at times. However, they lack the detailed expertise of a manager, but can display characteristics that separate them from a manager. In this section, I’d like to talk about 3 distinct differences between an entrepreneur and manager.
Purpose of an Entrepreneur Vs Manager
The purpose of an entrepreneur is to create a business which inherehently means high risk taking. A manager on the other hand is expected to maximise the existing resources. Hence, the risks taken for a manager are much lesser. An entrepreneur can afford to take risks because they have little to lose compared to a manager who has a higher expectation of ensuring that existing successes are not compromised.
Leadership in an Entreprenuer and Manager
They both are expected to demonstrate leadership abilities. This is slightly tricky because leadership expectation from both roles are different. An entrepreneur is expected to set the vision for the future. This vision is more lofty, sometimes more disruptive as compared to a manager. A manager focuses on the best use of resources thus resulting in a reduced exposure to leadership. An entrepreneur however is required to fixate on the longer term view and can take a few risks in the interim to ensure the long term success.
Working with uncertainty, risk tolerance and unknowns
In this regard, I’ll give the highest credit to entrepreneurs because their entire career is about these things. They are never sure about where the next business is coming from and sometimes even wonder if the business with survive at all. The managers are expected to maximise what they have and work towards it. The entrepreneurs however are under severe stress to survive and this comes out in different ways, but the underlying aspects of uncertainty and impacts of risk prevail.
In summary, the entrepreneur and manager come from different skillsets. The table below will show an indication of the types of characteristics demonstrated by these two personalities in detail.
| Criteria | Entrepreneur | Manager |
|---|---|---|
| Focus | Innovation and creativity | Efficiency and optimization |
| Risk tolerance | High | Low |
| Decision-making | Quick and flexible | Slow and methodical |
| Goal | Growth and expansion | Stability and profitability |
| Leadership style | Visionary and hands-on | Directive and delegating |
| Role in the organization | Founder and owner | Hired employee |
| Time horizon | Long-term | Short-term |
| Work schedule | Flexible and irregular | Regular and predictable |
| Skills required | Creativity, adaptability, and risk-taking | Planning, organizing, and delegating |
| Job satisfaction | Creating something from nothing | Achieving goals and delivering results |
| Typical industries | Technology, startups, and small businesses | Established corporations and large organizations |
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