[Commerce Class Notes] on Difference Between Entrepreneur and Manager Pdf for Exam

The term ‘entrepreneur’ is highly contrasted with the term ‘manager’, they both are the key persons in an enterprise which help the organisation to grow. Although both the terms are similar but have different functioning in an organization.

Both Entrepreneurs and Managers facilitate control and management of the company, but are differentiated in terms of individual idea, skills or courage with management and operating functions. In this article, we will discuss comparison between entrepreneurs Vs.  managers.

Entrepreneurs Vs. Managers Comparison

The debate is between the Manager and an Entrepreneur, A manager is the leader within an already established organization who oversees or spectates the work of other employees within the same department or sometimes at a larger segment of the organization.

The managers assign tasks to the employees working under him, provide guidance to them, also troubleshoot their problems and ensure that the work deadlines are met. Irrespective of the fact that they are given more responsibility and subsequently higher pay scale, they are still an employee of the company and are accountable to a supervisor or to the company owner.

In contrast to the managers, there are entrepreneurs. These people identify a consumer problem and try to find a solution immediately, then this solution is added to their strategy model which eventually builds their business. They pitch an idea for a product or service, they develop the product, formulate a company around its sales and marketing and assume all the financial risks associated with starting and running of the business as the business model is now the responsibility of them.

They moreover hire additional employees to help in the various departments of the company, but they ultimately fulfil versatile roles as an owner, manager and entrepreneur by making sure the business follows their set design and mission.

Who is a Manager?

A manager is a person who takes the responsibility for a specific part of a company, they manage the company. Managers are in charge of various departments including the people working in it. The manager is in charge of the whole business. For example, a ‘showroom manager’ is in charge of the whole showroom.

Managerial functions primarily are only performed by the managers in the company to execute their work. They hold the power to hire, fire, maintain discipline, give performance appraisals, and also monitor attendance. In addition, they should also approve overtime work to the employees, and authorize their vacations as well.

Who is Peter Drucker?

Known as the ‘Father of Management Thinking’. Peter Drucker was the most renowned and influential thinker on management study. Drucker’s work continues to be used by the managers worldwide. Also, a prolific author, Peter Drucker among the first to illustrate management as a distinct and separate function and being a manager as a specified responsibility. In his writing, he talked of real understanding of managerial functions and sympathized for the hurdles faced by the managers.

Throughout his fledged career he also acquired interests as journalism, art appreciation, mountaineering, reading – drawing inspiration from the works of the famous Jane Austen – and, no doubt in management teaching, writing and management consultancy. 39 books were published over the past seven decades also translated into at least 30 languages and many books written in honour of this individual since his death. In common consent, he was regarded as the founding father of modern management studies.

Who is a Good Manager?

Good managers are always excited about the company where they are working and they positively communicate to their employees working under them in the company. They try to maintain a healthy and kind corporate culture, they are the reason why the company is unique among others. Good managers prioritize their tasks and lead their department by making not so easy decisions. They also need to be people oriented as well, not only focused on driving forward the tasks, but also listening to employees’ concerns. Other good character traits in a manager include a gentleman personality, honesty and the ability to take up responsibility and hold themselves and also others accountable for their actions.

Both Entrepreneurs and Managers are equally important for an organization to foster.