We hear these words used interchangeably in most conversations. In this article, we will cover the difference between entrepreneur and entrepreneurship. Both terms start from the same point of risk – this risk is about creating a new business or finding a new solution. In short, entrepreneurship is the act of becoming an entrepreneur. This is mostly a difference between the process and the outcome. However, there are some more nuances as you will see further in this article.
Entrepreneur and Entrepreneurship difference
The difference between entrepreneur and entrepreneurship can be summarised into these 5 points in the image below. In the later parts of this article, you can find a table of differences for these.
- Entrepreneur is an individual or person who takes risks, creates a business.
- The founder is the leader who creates and develops a business. They can develop either a small business or a large startup
- Entrepreneurship is the process of becoming a business person. An entrepreneur is the outcome of this process.
Definition of Entrepreneur
Entrepreneur: An entrepreneur is a person taking a risk. This person creates or develops a business, defines its purpose, and vision and is the ultimate responsibility owner for what happens to it. Apart from business responsibilities, the entrepreneur also has legal liabilities as the director of a business.
Definition of Entrepreneurship
Entrepreneurship: Everything to do with the business is entrepreneurship. It is the act of creating, running and developing a business idea. Even when the idea is in its early stages, we call it entrepreneurship to define the act of becoming ready for a business.
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 creating 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 it a way to define yourself. Both these definitions are valuable in the startup world. But as long as we focus on creating value, we will be able to 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 actions. | 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. |
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