4 Key Differences between Entrepreneur and Entrepreneurship

We hear these words used interchangeably in most conversations. In this article, we will cover the difference between entrepreneurship and entrepreneur. They are both used interchangeably, however, one of them is the process and the other is the person. They both start from the same point – of the ability to take risks – the risk of creating a new business. In short, entrepreneurship is the act of becoming an entrepreneur.

Entrepreneur and Entrepreneurship difference

To be honest, I don’t find the point in detailing the difference between the two because they both are used so interchangeably. However, for a theoretical debate, the image below serves the purpose of talking about entrepreneur vs entrepreneurship. They are both required for the many advantages this function brings. The central ability to take risks, and make something happen is pivotal for this business world.

The differences between entrepreneur and entrepreneurship can be captured in the following points.

An entrepreneur is an individual or person who takes risks, and creates a business: This is all based on the person who is taking this action. The founder of a business idea – represents the business at the start. During the early stages, entrepreneurship and entrepreneur merge together since both the business and the creator are viewed interchangeably.

Entrepreneurs also refer to problem-solving during the early stages of business creation. However, entrepreneurship as a function looks beyond problem-solving, its focus is on expansion, scalability and creating beyond the founder

• For an entrepreneur, risk is personal, it is based on their time, money and opportunity cost. In this case, there is no way to separate the risk from the person. In entrepreneurship, however, this is a business function. The entrepreneur and the business start becoming different things and activities. The risk can also be reduced in this process

Differences between Entrepreneur and Entrepreneurship

This is a detailed table summarising the differences. You can see that this is extended into a longer section if you’re interested in creating a theoretical distinction or a paper on it. But the main difference is in the process of becoming something. You can also see some examples which can help extend the meaning and create a compelling case.

I love the idea that entrepreneurship is an art, the process, everything you do to create a business, run and sell it. You become an entrepreneur in this process and find a way to define yourself. Both these definitions are valuable in the startup world. But as long as we focus on creating value, we survive in this world of business.

Attribute	Entrepreneur	Entrepreneurship
Definition	An individual who takes business risks.	The process or activity of taking business risks.
Focus	On opportunities and decision-making.	A broader range of activities including idea generation, planning, and execution.
Risk	Takes personal and financial risks.	The entire structure that enables and supports risk-taking
Practical Analogy	The captain of the ship.	The voyage or journey itself.
Role in Ecosystem	A key player, making decisions and taking action.	The setting or framework within which entrepreneurs operate.
Independence	Can exist without entrepreneurship but may not be as effective.	Can’t exist without an entrepreneur.
Day-to-Day	Focuses on management, leadership, and problem-solving.	Encompasses everything from idea generation to business scaling.