Difference between Entrepreneur and Manager

December 2022 · 2 minute read

The definition of a manager is simple enough. A manager is a person who manages things. The thing that he or she manages can be anything, no matter how small, or how big. However, the primary difference between an entrepreneur and a manager is that while an entrepreneur works for themselves, a manager works for someone else. A manager is usually hired by something to handle or manager tasks on their behalf.

ManagerDepending on each individual, an entrepreneur may take on the tasks of the manager, especially in the initial stages of setting up the business. Here, the entrepreneur may need to hire people, manage them, as well as manage the business. Hence, in these kinds of scenarios the role of the manager and the entrepreneur are interchangeable.

On the other hand, some entrepreneurs may choose to hire a manager and delegate these tasks to them, so that they pay be able to focus on the larger scope of the business, such as getting more clients, or developing more products, etc.; though it should be noted that these tasks can be delegated to a manager as well, if the entrepreneur chooses.

Comparison between Entrepreneur and Manager:

Entrepreneur

Manager

Definition (Oxford Dictionaries)

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

A person responsible for controlling or administering an organization or group of staff

Business

Set up their own business

Work in someone else’s business

Role

Owner

Employee

Financial Risks

Take on the financial risks of the business

Does not take on the financial risks of the business

Reward

Profit

Salary

Management

Manages the business and the people involved, i.e. staff

Manages the business and the people involved, i.e. staff

Focus

Business startup

Ongoing operations

Reference: Wikipedia (Entrepreneurship and Manager), Business Dictionary (Entrepreneur and Manager), Key Differences, Wise Step, Chron Image Courtesy: thefrugalmillennial.com, licdn.com

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