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Transcript

Hello!! Friends in our last class we were discussing about the concept of entrepreneur and entrepreneurship and entrepreneur behavior and the functions of an entrepreneur. While that particular discussion again and again we were referring to the term business also. We are defining the term entrepreneur and using the term business. I am sure you must have developed a question in your mind what is the differences between Entrepreneur and the businessman. Are they one and same can we use these term synonymously or there is any difference that exists. Similarly, what are the differences that exist between the entrepreneur and the manager and the entrepreneur and the businessman and the leader? So, to begin with we will be emphasizing on the differences between the entrepreneur and the manager. What makes an individual an entrepreneur and how he is different from the businessman? The first and foremost issue is entrepnuer is the person who creates the need in the society and the businessman is the person who satisfies the needs of the society. So, let us elaborate these two issues. What is that? The entrepreneur creates the needs, it means with innovative ideas he is coming out with new products and new services. This is what the role of an entrepreneur is and the role of a businessman is to translate that particular process or the product to the common man. He is only acting as the post office of taking that product from the entrepreneur and taking it to the masses, the communities, the societies and this is what the role of a businessman is. But the entrepreneur is the person who is creating all these products and services so, that is why we said that he is creating needs in the society. Earlier I not at all thought of yes one such product may appear in the market. But today it is a reality. Tomorrow we may come out with different services, different products. So, which are the outcomes of the process of enterprise and the business is constant in nature, whatever the product is released in the market they are going to take it in the market. The second difference that we come across is entrepreneurs create the path in which the businessman is going to follow that particular path. It means he is creating new ways of providing the services, new products, new things so that many people are walking in the same direction and at some point of time there may be change in the direction that is how they are creating a new path. Then the entrepreneurs are going to capture the opportunities as we have being telling since beginning. The opportunities prevail in the environment and it is equal opportunity of grabbing those opportunities for each and every individual. But we identify those individuals who grab these opportunities from the existing environment wherein we all living as an entrepreneur. But the business man is ignoring these opportunities and he is just following the path created by an entrepreneur. So these are the basic difference between the entrepreneur and the business.

Then we will be coming to the differences between the entrepreneur and the manager. So, it is said that every entrepreneur is a manager but every manager cannot be an entrepreneur. Why it has been said like this. So, we will elaborate that with the help of these issues one by one. Entrepreneur is basically an individual satisfaction and he has a personal stake in it, means entrepreneur has established an enterprise to satisfy his needs to be an independent man and he is having a personal stake in it. But manager is a person who is providing a service in an organization or in a enterprise created by somebody else. So, this is what is the basic difference between a manager and an entrepreneur. So, by establishing an enterprise, and by satisfying his own needs he is already acting as a manager means, he is an inborn manager entrepreneur is an inborn manager. But the manager cannot take the role of the entrepreneur because his role is very limited to provide the services in the entrepreneur established by someone. The second difference that we can count is so he is an owner of an organization and bears all the risk and uncertainties. So, being the owner these two things make him different from others, bearing risk as well as bearing uncertainties. But the manager is only acting as an employee. He is not ready to accept any risk. The moment the manager accepts the risk he translates himself to be an entrepreneur, he is no longer a manager now. So, that is the basic difference. Then the objective of a entrepreneur is to innovate means always he is in the pursuit of new ideas, new things so that’s what is the role of on entrepreneur and create and acts as a change agent in the society. As quick he is going to bring in the changes he is going to be the gainer. On the contrary the objective of the manager is to supervise and create the routines. His role is very very limited. For any of the new innovations, or any of the new ideas, or any of the new creations of the entrepreneur he is going to create a routine for that and he makes it more functional in an efficient way and that is what is the role of a manager. The entrepreneur is going to face more income uncertainties. When I say that it is an income uncertainty it does not mean that all the time he is going to be the looser or that all the time he is going to be the gainer. But uncertainty is always there. If he is gaining mat be he become a millionaire or maybe in case of loss he may become bankrupt. These are the two extreme situations that is being faced by an entrepreneur. But the manager is not much worried about these things because his compensation is fixed. So for the services that he is going to render, so these are the perks, the salary and all those things that are fixed, whether the company is in the profit or organization is in the loss, he is eligible to get his benefits. So, this is what another basic difference is. The next one is generally entrepreneur being an owner of the organization he is not involved in any of the fraudulent behavior on the contrary manager may. There are good numbers of incidents that we may come across. There are good numbers of managers who cheated may be by fraudulent practices or maybe by not working hard. So many ways they may have cheated the organization that is not the case of the entrepreneur. Now coming to the most important aspect what are the qualifications or what are the qualities of an entrepreneur that we need to know. So, the qualities of an entrepreneur that we will be discussing in the next lecture, at length just to quote most important one. Number one is the high accomplishment motive or high need achievement then innovation in innovative thinking, forethought, risk bearing ability etc or the qualities and qualifications of an entrepreneur. It means he need not have the formal degree like from the universities to be a successful entrepreneur. Without these formal degrees also you can be successful entrepreneur. But without the formal degrees and without understanding the management theories and without having the certificates the manager cannot occupy his position.

So this what is another basic difference? Then entrepreneur deals with the faults and failures as a part of learning experience. If there is no fault is the gainer or if there is any mistake it’s going to be added to his experience and that is what the role of an entrepreneur is. But the manager avoids the mistake. He makes every effort to avoid the mistake because he is having the formal educational background. At the same time he postpones the failure also because if there is failure or if there are mistakes he has to be rewarded accordingly. There are extreme possibilities of losing the job for the manager also. This is what the risk associated with him. So that is how he is avoiding the mistakes and postponing the failure. The as I have already said entrepreneur can take over the role of a manager but the reverse process is not possible. If at all such incident happens he is going to be an entrepreneur and he is no longer remaining as a manager. The beauty of the manager is he is going to bring some professionalism into the working of an organization with his educational background and that is how he is adding the qualities to enterprise. So these are some of the basic differences between the entrepreneur and the manager. In the earlier case we have seen the differences between the manager and the businessman. In the back ground of these two now let us move to the differences between the manger and the leader. As we said in case of the differences between the manager and the entrepreneur, every entrepreneur is going to be a leader. But every leader cannot become a manager. With this background so now let us analyse between the entrepreneur and the leader. The entrepreneurs tend to have the high levels of energy with him because he has so many roles to perform so many functions to perform. But on the contrary leaders are having moderate to high levels of energy because role of an entrepreneur is something different than the entrepreneur. Generally, the entrepreneur’s have fair to poor listening skills and the leaders are the good listeners. In this context let me elaborate the importance of listening. In communication science we say that a good communicator is a good listener, means a person listens he can communicate very well and as we are aware the leaders are going to be the good communicators and that is how they are good listeners also. But the priorities of entrepreneurs are totally different, because he has to implement his own idea, means he is becoming more autocratic compare to the leader who is more democratic in nature and that is how the entrepreneur is not having the patience to listen to many of the people compared to the leader. So, when it comes to the teaching ability it means lot of patience the entrepreneurs has compared to the leader. And when it comes to the emotional intelligence the entrepreneur is having average to fair emotional intelligence. He is not much influenced by the emotions of various may be as followers or may be various conditions that are prevailing in the society because he is basically man who is interested in business rather than welfare. So on the contrary leaders have average to good emotional intelligence because these are the people always working with the people. So this is why we said so all entrepreneurs are having the ability to lead the group but every leader cannot become an entrepreneur because they are having the qualities like may be the good teacher or good listener or having high levels of emotional intelligence. The entrepreneur is always willing to take the risk which makes him a different man and are reasonably good at dealing with the crises. On the contrary the leaders are moderately willing to take the risk, they are almost we can say that not ready to take the risk. The moment they start accepting the risk so they become the successful entrepreneurs. But they are great with the dealing with the crisis situation because every moment they are facing with these situations so that is how they are good at dealing with the crisis. Entrepreneur’s have high control over the needs and can’t delegate their responsibilities because he has his own specific plan to be executed as an entrepreneur so that is how he cannot think of delegation of that idea to somebody else so that he can implement that idea. But they have the great control over their needs means they have very limited needs to be satisfied, because he has already satisfied his basic need of being an independent man with that he is more satisfied but he cannot delegate his powers. At the same time leaders have moderate control over the needs but they can delegate. So, this is what we can see especially in case of democratic style of leadership where they can delegate all the powers to the people who are working with him.

Entrepreneurs have the wide range of networking skills from poor to great that we can say without which he cannot even think of his survival but leaders are also having great networking skills because their existence is also dependent on the networking. In total we can say that the entrepreneurs are pragmatic and the leaders are Utopian. What do you mean by pragmatic? The term pragmatic reveals that the entrepreneur is a person who is highly practical in nature. He will accept only those ideas which he can implement with immediate effect. But on the contrary the leaders are having utopian ideas it means the literal meaning of the term utopian means it is ideal but not practical, the ideas of the leaders say that. So there should be equal distribution of the wealth in the society. It seems to very ideal and it sounds very good without doing any additional effort I am getting an equal share or wealth of the society obviously it feels good. But is that practical, obviously we cannot think of such situation. So, that is how we say that leaders carry the utopian ideas but the entrepreneurs carry the pragmatic ideas. In a nutshell we can say that the major goal of a leader is to bring in the change and the major goal of the manager is to bring in the efficiency but the goal of the entrepreneur is to ensure the profits. So in case of time frame leader is always futuristic in nature, he is thinking of tomorrow, the manager is looking into the immediate needs but the entrepreneur is looking into the short as well as the long term goals as far as time frame is considered because he has to emphasize on today’s needs as well as what he can do in the future. So when it comes to the coverage of the area Arena the leaders are going to cover the entire social system in which they are working. The manager is limited to his own enterprise but the entrepreneur is limited to enterprise and market. Yes, he is limiting himself to the enterprise wherein he is involved in to the product to the services whatever it is but, when it comes to the market always that needs expansion. Maybe today he is covering the local market, tomorrow he is entering the regional market day after tomorrow he may enter into the national market and in the subsequent days and years he may enter into the international market and that is what the Arena of the entrepreneur is. When it comes to the personal dispositions as far as the resourcefulness is considered leaders are medium levels of resourceful persons and managers are high levels of resourceful persons and the entrepreneur is also having high levels of resourcefulness. Achievement orientation, the managers are having high achievement orientation because always with his academic background he want to do something better so that is how he is having the more achievement orientation but the leaders as well as the entrepreneurs are having the medium levels of achievement orientation because they have their own limitations, they are having their enterprise, their organization, their ideology with them, with that they cannot think of highest levels of achievement orientation because that’s going to deviate them. So when we look into the vision the leaders are having highest vision as we said they can even think of utopian ideas so that is how it becomes very high. The managers are having the low levels of because their areas is limited to their enterprise and entrepreneurs are a combination of that we can say that it is medium. So, when it comes to the opportunity seeking entrepreneurs are at their best that is high level and when it comes to the innovation also entrepreneurs are at their best that is high levels of innovation. So, this is how we can have holistic understanding of the concepts of leader, manager and an entrepreneur in a nutshell. With this we can conclude that entrepreneur by default strives to be a good manager, but a manager is not having the ability of risk factor hence it prevents him to be a successful entrepreneur. Similarly all leaders are not able to be a successful entrepreneur. Every role is conspicuous, but an individual can assume different roles in different conditions, which makes them different, in this context it is entrepreneur.

With this we are coming to the end of the discussion on the differences between Entrepreneur, the businessman, the Manager and the Leader.

Thank You”>