Entrepeneur vs Manager

8/13/2019 Entrepeneur vs Manager

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Submitted by:Sonit Chawda

MBA-IB


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Flow of presentation

Who is entrepreneur?

What are the qualities of entrepreneur?

What are the role of entrepreneur?

Who is manager?

What are the role of manager?

Difference between entrepreneur and manager.

Conclusion


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Who is entrepreneur?

A person, who innovates, organizes, manages and takes

the risk of running an enterprise.

One who allocates and manages the factors of production

and bears risk. One who has the ability to perceive latest economic

opportunities and to devise their exploitation.

The supplier of resources, supervisor and coordinator,

and ultimate decision maker.


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What are the qualities of an entrepreneur?

Capacity to assume

Dedication to work

Shrewdness and wide

knowledge Motivating attribute

Vision and foresight

Imagination, initiative

Innovation and rational

judgment

Flexibility and sociability

Personal responsibility

Mobility and drive

Creative thinking

Strong need forachievement

Capacity to marshal

resource

Independence


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Functions of entrepreneur

The main functions of entrepreneur are classified into three

broad categories:

Organization:

An organizer mentally first of all decides certain things like what, how,

and how much to produce. He estimates the demand for the commodity

and initiates the production. He decides the location of the industry,

scale of production and estimates the availability of raw materials, labor,

capital etc.

Then he co-ordinates the other factors like land, labor and capital in

proper proportion, so that he can minimize the cost of production and

reap more and more profit by producing more and more quantity at a

cheaper price. He supervises the entire production activity. After

production is over, he finds proper market for his product and sells them.


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Continue.

Risk bearing:

An entrepreneur not only organizes the entire production

process but also undertakes risks and uncertainties. An

organizer starts production with an anticipation of demandfor his product. But when he actually brings the product to

market, there may or may not be demand for his product.

This is a non-insurable risk he has to undertake. Thus a

brave organizer has to shoulder certain insurable andnon-insurable risks also.


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Innovation:

An entrepreneur must be an innovator to survive in the

market and to retain the same position for his product.

Innovation means introducing new changes in productionor technology or market for the product. Profit as a reward

for innovation is not a stable one. It appears, disappears

and reappears. Only the imaginative skillful few will

remain in the industry for ever.


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Role of entrepreneur

An innovator who combines technical innovations and

financial finesses.

Important role in producing competitive products, processes,and services.

Generation of new employments.

Local and regional economic development.

Improved allocation of resources and transfer of

technologies.


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Who is manager?

A manager is someone whose primary activities are a part of the

management process. In particular, a manager is someone who plans

and makes decisions, organizes, leads, and controls human,

financial, physical, and information resources.

Managers in any organization are responsible for the performance of

one or more of their subordinates. Managers must mobilize people

and resources to accomplish tasks within their department and are

also held accountable for the results of their department. Further,

their goal is to help the organization achieve a high level of

performance through management. Management involves the

process of planning, organizing, leading, and controlling the use of

resources.


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Roles of a Manager

Interpersonal Role:

Figurehead-performs activities like greeting visitors, give

awards to employees etc

Leader- Lead and motivate subordinatesLiaison- He is a link between organisation and outsiders.

Informational Role:

Monitoring- Collects information.Disseminator- Distributes information.

Spokesperson- Represents his unit/organisation while

interaction with outsiders.


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Decisional Role:

Entrepreneur- Assumes risk in terms of results, due to

dynamic factors of business.

Disturbance Handler- Tries to control forces that tend todisturb smooth functioning of the organisation.

Resource Allocator- Allocates human, financial and

physical resources according to needs.


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Difference between Entrepreneur and Manager

The terms Entrepreneur and Manager are considered

one and the same. But the two terms have different

meanings.

The following are some of the differences between amanager and an entrepreneur.

Motive:

The main motive of an entrepreneur is to start a

venture by setting up an enterprise. He understands theventure for his personal gratification.

But, the main motive of a manager is to render his

services in an enterprise already set up by someone

else.


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Status:

An entrepreneur is the owner of the enterprise.

A manager is the servant in the enterprise owned by theentrepreneur.

Risk-bearing:

An entrepreneur being the owner of the enterpriseassumes all risks and uncertainty involved in running theenterprise.

A manager as a servant does not bear any risk involvedin the enterprise.


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Objectives:

An entrepreneur and a manager differ in their objectives.

Entrepreneurs objective is to innovate and create and he

acts as a change agent.

where as a managers objective is to supervise and

create routines. He implements the entrepreneurs plans

and ideas.


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Rewards:

The rewards an entrepreneur gets for bearing risks

involved in the enterprise is profit which is highly uncertain.A manager gets salary as rewards for the services rendered

by him in the enterprise. Salary of a manager is certain and

fixed.


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Fraudulent behavior:An entrepreneur is not induced to involve in fraudulent

behavior where as a manger does.A manager may cheat by not working hard because his

income is not tied up to the performance of the

organization


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Innovation:Entrepreneur himself thinks over what and how to

produce goods to meet the changing demands of the

customers. Hence, he acts as an innovator also calledchangeagent.

But, what a manager does is simply to execute the

plans prepared by the entrepreneur. Thus, a manager

simply translates the entrepreneursideas into practice.


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Qualification:

An entrepreneur needs to posses qualities and

qualifications like high achievement motive, originality inthinking, risk-bearing ability and so on.

On the contrary, a manager needs to posses distinct

qualifications in terms of sound knowledge in

management theory and practice.


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An entrepreneur could be a manager but a manager cannot

be an entrepreneur. An entrepreneur is intensely dedicated

to develop business through constant innovation. He may

employ a manager in order to perform some of his functions

such as setting objectives, policies, rules etc. A managercannot replace an entrepreneur in spite of performing the

allotted duties because a manager has to work as per the

guidelines laid down by the entrepreneur.

On the downside, typical manager brings professionalism

into working of an organization. They bring fresh

perspectives, ideas and approach to trouble shooting which

can be invaluable.


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Conclusion

After going through the above points of distinction, it is

clear that an entrepreneur differs from a manager. At

times, an entrepreneur can be a manager also, but a

manager cannot be an entrepreneur. After all, anentrepreneur is a owner, but a manager is a servant.


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Entrepeneur vs Manager

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