Entrepreneur and entrepreneurship are two popular and closely related business terms. However, they may have to be explained to individuals who are new to commerce and industry and are not well aware of the use of business terminologies. Entrepreneur is a person who identifies the need for a product, service or both in the market and tries to cater to this need by coming up with some unique and innovative ideas of delivering that product and/or service in an effective and efficient way. In contrast, entrepreneurship is a process through which a business venture is established and promoted to acquire profits in the future.
The detailed explanations of two terms and the differences between them will be given in the coming paragraphs of this article.
Definitions and explanations
An entrepreneur is an individual who comes up with a creative idea or a business plan and takes the steps needed to transform this idea into an actual venture, for example by offering adequate capital, land, human resources and other resources that are needed to develop the product. In addition, an entrepreneur is fully responsible for the success or failure of their business venture in the future.
There are certain qualities that are possessed by entrepreneurs. Entrepreneurs are innovators who come up with a revolutionary idea or a new concept that can be successful in the market. In addition, entrepreneurs have excellent leadership abilities for managing their employees and leading them from the front. Entrepreneurs are able to inspire and motivate their employees so as to ensure the success of their business. Apart from this, entrepreneurs have a high risk taking ability; they are not afraid to take risks and pursue opportunities that may not be identified by others. Entrepreneurs also have a high level of confidence in their abilities and ideas, are future-oriented and are passionate about their vision. They never give up and do everything they can to convert their idea into reality. They are hard-working and exhibit perseverance in their efforts to achieve success.
Entrepreneurship is the process of planning, developing and running a business activity with the aim of generating profits. This process is carried out by an entrepreneur in a systematic, focused and continuous manner.
The entrepreneurial process commences with idea generation by the entrepreneur, followed by the development of the business plan, gathering finances for the venture, carrying out promotion, starting the business operations and finally, harvesting the business.
The main feature of entrepreneurship is innovation, which is what differentiates the product from others in the market. This helps the entrepreneur establish his/her product in the market because there are rarely any similar products being sold in the market.
An entrepreneur closely monitors the trends in the market and identifies future requirements so that they can consistently enhance the products and services they offer and expand their venture further. In addition, entrepreneurship involves a significant amount of risk because the entrepreneur is presenting a new idea in the market, which has not been tested before.
Difference between entrepreneur and entrepreneurship
The key points of difference between entrepreneur and entrepreneurship are listed below:
An entrepreneur is an individual who comes up with an idea, not only to create profits, but also to provide easier ways of doing things by offering products and services that are valuable to the customers. On the other hand, entrepreneurship is a process of converting an idea into reality. In this process, all resources that are required for starting the venture are gathered, and efforts are made to consistently execute the vision of the entrepreneur to generate profits in the future
An entrepreneur is a person possessing innovative and creative ideas, whereas entrepreneurship is the process of initiating and operating a business that offers innovative products and solutions. In other words, an entrepreneur comes up with an idea, while entrepreneurship involves the various activities that are carried out to execute that idea.
3. Business venture
An entrepreneur is the one who develops the business venture for transforming his/her idea into an actual product or service so as to provide a solution to the issues being experienced or to put forward a novel way of doing some task. On the other hand, entrepreneurship is the manner in which the business venture is run, while assuming all the risks that are faced in the process of practically implementing the vision of the entrepreneur.
4. What is it?
An entrepreneur is essentially the founder of a new business that has been established to create a unique product/service. Entrepreneurship, however, involves solo ventures by entrepreneurs as well as large-scale initiatives that include several employees.
Entrepreneur vs entrepreneurship – tabular comparison
The comparison of entrepreneur and entrepreneurship in tabular form is presented below:
|A person who comes up with an idea or develops novel products/services||The process through which ideas are converted into reality|
|An individual possessing unique ideas||The process through which a business is established and run to provide innovative products and services|
|Entrepreneur creates a business to transform their ideas into actual products/solutions||The way the business venture is run with the aim of providing solutions and generating profits|
|What is it?|
|Founder||Solo ventures or major initiatives|
Conclusion – entrepreneur vs entrepreneurship
It is evident from the definitions presented in this article that an entrepreneur is just an individual who has come up with a unique and highly profitable idea and wants to transform this idea into an actual product by carrying out the entrepreneurship process. Entrepreneurs are known for the passion they have about their ideas and their willingness to take up significant risks to pursue their ideas. These individuals are highly passionate about their ideas and do everything in their capacity to achieve their vision. The success or failure of a business organization is entirely the responsibility of the entrepreneur.
There are some popular examples of entrepreneurs who managed to achieve a significant amount of success. For example, Bill Gates, the founder of Microsoft, Steve Jobs, the founder of Apple and Mark Zuckerberg, the founder of Facebook. These entrepreneurs had revolutionary ideas and had the vision and objective of transforming the world with their products and/or services. All of these individuals were dedicated and committed to their vision, and set up their entrepreneurship ventures to achieve their goals.