Distinction between an Entrepreneur Manager
Particulars Entrepreneur Manager
1. Goal Mgmt. An entrepreneur starts a venture The main aim of manager is to render
by setting up a new enterprise his service in an enterprise already set
for his personal gratification. by someone.
2. Status Entrepreneur is the owner of Manager is the servant in the enterprise
Enterprise.
3. Risk An entrepreneur bears all risks A manager does not bear any risk
and uncertainties involved in involve in enterprise
the enterprise.
4. Rewards Entrepreneur receives profit A manager receives salary for his
which is not only uncertain and service which is fixed and can never be
irregular but can at times be negative.
negative.
5. Innovation As an innovator he is called as A manager executes the plans of an
change agent who introduces entrepreneur. Thus, a manager
goods and services to meet translates the ideas into practice.
changing needs of the customer.
Management refers to the ongoing co-ordination of production process, while entrepreneurship
process which has at least 3 benefits for society.
i) Fosters economic growth
ii) Increases productivity, production and employment opportunities.
iii) Creates new technologies, Products and Services.
Difference between Income Generating, Self Employment and Entrepreneurship
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Income Generating (IGA) Self employment (SE) Entrepreneurship
i) It means indulging some i) It refers to full time i) It refers to identifying an
practice which is often per involvement in one’s own idea, gathering the
time and casual and occupation in which one may resources, undertaking the
supplementary in nature or may not have to take any production process and
with no concerns for risk, to mobilize the goods or marketing the produce with
excellence or growth. It is inputs or any other resources constant strive for
only for the purpose of or produces and making of excellence and growth with
raising additional income. the produce. an element of risk.
ii) Supplementary income ii) Income from one’s own ii) Profit making
input
iii) Partial employment iii) Full time employment iii) Full time employment
iv) Usually collective in iv) Not collective in nature iv) It can be individuals,
nature partner or group
v) Managed by NGO’s or v) It may be a part of SHG v) Managed by owners /
SHG’s partners
vi) Most common vi) Fairly common vi) Uncommon
development activity. development activity. development activity.
vii) Programs usually under vii) Programs under certain vii) Few programs and focus
certain schemes and schemes and target oriented. is on economic viability.
target oriented.
viii) Emphasis is on skill viii) Mainly artisan skill used viii) Skills needs more
training for own occupation complex
ix) Low investment ix) Low investment ix) Investment may be low,
medium or high depending
on the enterprise
x) Last as long as fund x) Last longer but limited x) Once started it is a
available period continuous process
xi) Useful employment xi) Traditional occupation xi) Market oriented
oriented oriented
xii) No risk xii) Almost no or less risk xii) Medium / calculated risk
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Factors of Entrepreneurship Development:
1. Human Factors
It pertains to person himself or herself which includes
i) Attitude
ii) Desire
iii) Motivation
iv) Capability
v) Adaptability
vi) Ability to avail opportunities
vii) Ability to solve the problems
Through the training the human factors can be developed.
2. Environmental Factors
These are the factors which influence entrepreneurial activity to flourish and grow.
Intrapreneurship:
The concept is given by Gifford Pinchot.
A person, who acts like an Entrepreneur, but does so within the organizational environment.
Gifford Pinchot who coined the term describes intrapreneur, as the person who takes hands on
responsibility for creating innovation of any kind within the organization.
The entrepreneur may be the creator or inventor, but he / she is always the dreamer who figures
out how to turn on idea into a profitable reality.
Characteristics of an Ideal / Model / Successful Entrepreneur
1. Identifies market needs and tries to satisfy them.
2. Puts together resources to produce a product or provide the service.
3. Manages the enterprise to maximize profit.
4. Takes calculated risk to achieve success.
5. Makes decision with responsibility.
6. Constantly seek opportunity to grow.
7. Predict the changes in the market and adapt the business accordingly.
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Enterprise:
An enterprise may be of many types
1. Proprietorship (Individual ownership)
2. Partnership
3. Private limited
4. Public limited
5. Co-operative Society
An enterprise means the unit of production / service with
a) profit motive
b) return on investment
c) increasing opportunity
d) business sense
e) cost for everything
f) sense of timing
g) calculated risk
h) proper management / managerial
i) growth orientation
j) societal value
