Is Every Businessperson an Entrepreneur?

Not necessarily!

I’ve met plenty of business owners who are great at running established companies but don’t embrace the risk and innovation that come with entrepreneurship. It's about mindset as much as it is about business.

Personal Experience

From my personal experience, the terms "businessman" and "entrepreneur" hold distinct but sometimes overlapping meanings:

Background

1. Businessman - Watching since childhood: My father ran a grocery business, while my mother managed a clothing store. They both instilled in me an understanding of traditional business operations.

2. Entrepreneur - Since college: After completing my education at NITK Surathkal, I have been involved in various startups including OnlineSolutionMatrix, Legalyatra, and Bucketkart. I also worked closely with developed startups as a vice president and head.

Defining the Terms

Businessman and entrepreneur to me are like the same “soul” with different presentations to the world. A businessman is typically someone who operates within a more traditional framework, such as my father or a local shopkeeper. An entrepreneur, on the other hand, is someone who is a founder and innovation-driven in a new era, like myself, my friends, or the founder of Paytm.

Grey Area

There’s a grey area where an entrepreneur might not fully understand the fundamental aspects of business, such as profitability, market dynamics, break-even analysis, and financial management. For instance, a friend of mine named Bikas runs a music school and has taken it to certain heights, but struggles with the actual business expansion and profit-loss statements.

So, every businessman is not necessarily an entrepreneur. While both can own and run businesses, entrepreneurs are distinguished by their creativity, risk-taking, and desire to create something new or significantly improve what already exists. In contrast, a businessperson may work within a more established or traditional framework without attempting to innovate or disrupt.

In conclusion, not every businessperson is an entrepreneur, but every entrepreneur is a businessperson. As illustrated by the examples of Mukesh Ambani, he is both a businessman and an entrepreneur. On the other hand, while Bikas is an entrepreneur, he is not yet a businessman due to his struggles with the fundamental aspects of running a business.

Key Takeaways

Businessman and entrepreneur: Same soul, different presentation. Entrepreneurs focus on innovation and risk-taking. Businesses can operate in traditional frameworks without being innovative.

Through my personal and limited experience, I hope to have added some value.

Cheers!