The world of entrepreneurs, leadership and management gets blurry. In this article, we talk about some of the differences between an entrepreneur and a manager. For context, an entrepreneur is someone who takes risks and starts a business. A manager is someone in a corporate setup or an established company responsible for specific targets and outcomes.
The main point to understand is that they perform in very different environments. The same skills will not help you survive or thrive in the other field. I think we must establish the motive that the traits are dependent on the environment, culture and purpose of the business. Each role is special in its place.
Entrepreneurs vs Managers Differences
Although they have similarities, the roles are completely different. Entrepreneur is the founder of a business, they are responsible for everything within the business. A manager however can have a limited scope for their team or a department in line with their responsibilities. An entrepreneur is expected to stretch wider.
Founders also deal with risks that are higher and define whether a business will survive or not. A manager however doesn’t deal with the same level of uncertainty. Their role is restricted to slightly more predictable environments. Most of these differences between entrepreneurs and managers are similar to that between managers and leaders. A more detailed view of differences is in the diagram below:
Table of differences – Entrepreneur vs Manager
| Aspect | Manager | Entrepreneur |
|---|---|---|
| Roles and Responsibilities | Oversees operations, focuses on execution, resource allocation, and stability | Identifies opportunities, creates innovations, takes risks, and establishes new ventures |
| Risk and Decision-Making | Minimizes risk, follows established protocols | Embraces risk, makes decisions under uncertainty |
| Innovation and Creativity | Optimizes processes, enhances efficiency | Driven by innovation, seeks disruption and uniqueness |
| Long-Term Vision | Contributes to the organization’s vision through short-term goals | Pursues a long-term vision, focuses on the bigger picture |
| Adaptability and Flexibility | Adapts to maintain stability | Adapts to navigate ambiguity and change |
| Creating vs. Sustaining | Ensures continuity and incremental growth | Creates new ventures, seeks growth, might move on to new projects |
| Mindset and Attitude | Operational and structured | Risk-taking and visionary |
| Collaboration vs. Authority | Collaborates with authority within organizational structures | Collaborates, leverages networks and partnerships |
| Contribution to Business | Provides a foundation for efficient execution | Drives growth, brings fresh ideas, shapes innovation |
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