The Key Differences Between An Entrepreneur And Businessman Explained

Are you interested in starting a business or wondering what sets entrepreneurs and businessmen apart? 

Understanding the difference between entrepreneur and businessman is crucial for anyone looking to succeed in the world of business. 

Whether you are looking to start a new venture or simply curious about the different roles in the business world, this article will provide valuable insights. 

In this article, we'll dive into the key difference between entrepreneur and businessman and explain what each term means. 

So, let's get started!

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Entrepreneur Vs Businessman: Key Differences

An entrepreneur and a businessman are two terms that are often used interchangeably, but they are not the same. While both involve running a business and making a profit, there are some difference between entrepreneur and businessman.

An entrepreneur is someone who starts a business from scratch and takes on all the risks involved. They are typically driven by their passion for an idea or product and are willing to take on the financial risks associated with starting a new venture. 

Entrepreneurs are known for their innovative thinking and ability to identify and capitalize on new opportunities. They often take a more hands-on approach to run their business and are willing to pivot their strategy when necessary.

On the other hand, a businessman is someone who manages an existing business or enterprise. They may have inherited the business, purchased it, or taken over its management. 

Businessmen are typically more focused on maintaining and growing the business, rather than taking risks and introducing new products or services. They are often more concerned with the bottom line and making a profit.

Another key difference between the two is their approach to problem-solving. Entrepreneurs tend to be more creative and unconventional in their approach, while businessmen may rely more on tried and true methods and best practices.

Now that we have considered entrepreneur vs businessman, let’s look at their types.

Types Of Entrepreneurs

Did you know that 96% of self-employed individuals said they don't want to return to a "normal job?"

Entrepreneurship has become a popular term in the business world, with many people starting their own businesses and pursuing their passion. 

However, entrepreneurs can be broadly classified into different types based on their motivations, approaches, and goals. Here are some common types of entrepreneurs:

1. Serial Entrepreneur: 

This type of entrepreneur starts and runs multiple businesses throughout their career. 

They enjoy the process of starting new ventures, and they may sell or exit businesses once they reach a certain level of success.

2. Social Entrepreneur: 

Social entrepreneurs are motivated by a desire to create positive social or environmental change. 

They start businesses or non-profit organizations with a mission to solve social or environmental problems while also making a profit.

3. Lifestyle Entrepreneur: 

Lifestyle entrepreneurs prioritize their quality of life over traditional business success metrics. 

They start businesses that allow them to live the lifestyle they want, whether that means working from home, traveling the world, or having a flexible schedule.

4. Scalable Startup Entrepreneur: 

Scalable startup entrepreneurs are focused on building businesses that can grow rapidly and become large companies. 

They may seek funding from venture capitalists or angel investors to fuel growth and scale quickly.

5. Small Business Entrepreneur: 

Small business entrepreneurs focus on building sustainable, profitable businesses that serve their local communities. 

They may operate independently or with a small team and prioritize building strong relationships with customers.

Between the ages of 39 and 54, Gen Xers make up 44% of small business owners.

6. Corporate Entrepreneur: 

Corporate entrepreneurs work within established organizations to develop new products or services or launch new businesses. 

They may be intrapreneurs who work for a larger corporation or entrepreneurs who create new businesses within an existing organization.

58% of business owners had previous corporate jobs before launching their own companies.

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Types Of Businessmen

The term "businessman" often conjures up images of slick suits, boardrooms, and high-stakes deals. However, there are different types of businessmen, each with its unique style and approach to business.

Here are some common types of businessmen:

1. Traditional Businessman: 

This type of businessman operates a business that follows traditional models of buying and selling goods or services. They typically have a long-term perspective and focus on building a loyal customer base.

One in five businessmen co-own or co-manage a family firm.

2. Serial Entrepreneur: 

Serial entrepreneurs can also be considered businessmen, as they are involved in starting and running multiple businesses. They are often driven by a desire to create something new and innovative.

3. Investor: 

An investor is a businessman who invests in businesses or startups intending to make a profit. They may provide capital, resources, or expertise to help businesses grow and succeed.

4. Franchise Owner: 

Franchise owners are businessmen who purchase the rights to operate a business under a well-established brand name. They are responsible for adhering to the franchise's established business model and guidelines.

5. E-Commerce Businessman:

E-commerce businessmen operate online businesses, selling products or services through the internet. They may have a brick-and-mortar store as well or operate entirely online.

6. Real Estate Investor: 

Real estate investors are businessmen who invest in real estate properties, to generate rental income or capital gains.

Are you considering how to become a businessman? Let’s answer that question!

How To Become A Businessman

Starting a business and becoming a successful businessman requires more than just a good idea. It takes hard work, dedication, and a set of essential qualities of businessman that are critical to success. 

These qualities of businessman include strong leadership skills, adaptability, resilience, determination, and the ability to take calculated risks. Moreover, becoming a businessman involves a combination of education, experience, and entrepreneurship. 

Here are some steps that can help you become a successful businessman:

1. Identify Your Area Of Interest: 

Choose an industry or sector that interests you, and in which you have some experience or knowledge.

2. Gain Education And Knowledge: 

Get a formal education in business management, finance, accounting, or any other related field. You can also gain knowledge through internships, mentorship, and self-study.

3. Develop Business Skills: 

Develop essential business skills such as leadership, communication, negotiation, problem-solving, and decision-making. Attend workshops, seminars, or training programs to enhance your skills.

4. Create A Business Plan: 

Create a detailed business plan that outlines your business idea, target market, products or services, competition, marketing strategy, and financial projections.

5. Secure Funding: 

Find investors or obtain a business loan to finance your business idea.

6. Establish Your Business: 

Register your business and obtain any necessary permits and licenses. Set up your office or store, hire employees, and create a marketing plan.

7. Build Relationships: 

Build relationships with suppliers, customers, investors, and other stakeholders to grow your business network.

8. Continuously Learn And Adapt: 

Continuously learn from your experiences and adapt your business strategy to changing market conditions and customer needs.

Did you know that 83% of owners of small businesses earn less than $100,000 annually, and 30% do not receive a wage?

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Are Resellers Entrepreneurs Or Businessmen?

Resellers can be classified as either entrepreneurs or businessmen, depending on how they approach their business.

If a reseller is buying products in bulk, adding value to them through marketing, packaging, or branding, and then selling them to customers, they can be considered entrepreneurs. 

This is because they are taking a risk by investing their money and time into creating a new business model and trying to differentiate themselves from their competitors.

On the other hand, if a reseller is simply buying and reselling products without adding any value to them, they can be considered businessmen. 

This is because they are operating a more traditional business model that involves buying and selling goods for a profit but without any innovation or differentiation from their competitors.

It is important to note that being an entrepreneur or a businessman is not mutually exclusive and can be a spectrum. Some resellers may exhibit characteristics of both types, depending on how they approach their business.

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How To Become A Reseller On Markaz

Markaz is a social commerce platform that enables individuals to resell products online. The platform allows users to create their own online stores and market their products to a wider audience.

With Markaz, resellers can easily connect with potential customers, manage their orders, and receive payments securely. The platform is user-friendly and provides a seamless experience for both resellers and buyers.

If you are interested in becoming a reseller on Markaz, here are the steps you can follow:

• Visit the Markaz website or download the app and create an account. Fill in your details such as name, email, and phone number.
• Browse through the different products available on the platform and select the ones you are interested in reselling.
• Join different seller groups on Markaz that match your niche or interests. This will help you connect with other sellers and potential customers.
• Start promoting these products on your social media channels, websites, or other platforms. Use high-quality images and engaging content to attract potential customers.
• Manage your orders and payments using the Markaz platform. Ensure that you fulfill orders on time and provide excellent customer service to your buyers. 

And congrats! You’re a reseller!

Read more: The Pro's And Con's Of Being Self Employed

Conclusion

Whether you are an aspiring entrepreneur, businessman, or simply interested in the world of business, understanding the differences between these two terms is crucial for success. 

By recognizing the unique traits and skills required for each role, you can make informed decisions and pursue your goals with confidence. 

We hope this article has provided valuable insights and inspired you to take action towards your business aspirations.

FAQs

What exactly does a businessman do?

With a combination of human, financial, intellectual, and physical capital, a businessperson engages in commercial or industrial activities to generate cash flow, sales, and income to promote economic development and growth.

What are the similarities between businessman and entrepreneur?

The parallels between businesspeople and entrepreneurs demonstrate that both are capable of taking initiative, making good decisions, and acting as strong leaders. To be successful in their respective areas, both require outstanding time management, planning, prioritizing, monitoring of plans, and strong communication skills.

What are the different characteristics of a businessman?

In addition to the traits already listed, a successful businessman should also have common sense, courage, dedication, patience, tact, charisma, and emotional stability.