by Michelle Anama Abari | Apr 26, 2022 | Business & Finance
There will always be a debate on the differences between business and entrepreneurship, except we research and grasp knowledge on these 2 concepts. Business in its light is broad and so is Entrepreneurship.
I’ve written articles on business and entrepreneurship simultaneously and I like most have used these concepts interchangeably failing to acknowledge that they have their differences and similarities. But most of us have only been able to acknowledge these similarities and not the differences between business and entrepreneurship.
Let’s now take a look at the differences between business and entrepreneurship, but before that let us answer these 2 relevant questions…
What Is Business?
To most, a business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations. Business types range from limited liability companies, sole proprietorships, corporations, and partnerships… says a website called oblerg.
What Is Entrepreneurship?
Entrepreneurship is all about building a life on your terms without any bosses. It is the act of creating a business or business while building and scaling it to generate a profit. It is what people do to take their careers and dreams into their hands and lead them in the direction they want.
Now that you must have gotten a glimpse of knowledge through the definition of business and entrepreneurship you will see that while there are similarities, there are differences, and more of these differences between business and entrepreneurship can be…
Differences between Business and Entrepreneurship
It can be quite difficult to put out the differences between business and entrepreneurship but as I said, these are concepts that I’ve used interchangeably without acknowledging their differences. Now that I do know some of the differences, I would like to share my opinion with you…
1. Business Is Analytical, While Entrepreneurship Is All About Possibilities
Business is more of an ‘analytical thinker’ while entrepreneurship is more of a ‘possibility thinker’. This means that a businessman’s main focus is on making a profit while an entrepreneur’s main focus is on generating new value.
Let me break it down with an example, a businessman is different from an entrepreneur. Entrepreneurs are people like Jeff Bezos, Elon Musk, Oprah Winfrey, Dangote, etc, these are entrepreneurs who look for the possibility of anarchy. They are trying to solve issues by generating value for what they do. Take for instance Oprah Winfrey, she has her studio and she uses this studio to interview celebrities and get their ideas on issues around the world and also on issues where these celebrities have been misunderstood. What she does creates value because most people would never have thought of this idea which she is using to her benefit. That’s why I said entrepreneurs generate value in what they do.
Then, businessmen are those people who invest in things like the stock exchange market, cryptocurrency, and already existing successful businesses. their main aim is to invest in businesses that will give them maximum profit. These people never look at the losses, their goal is to make money and more money, and more money. That’s why they are more analytical because they believe more in the laws of economics than that of the human mind.
2. A Business Is an Existing Model While Entrepreneurship Is Not
Businessmen invest energy, resources, and time to run the business because it is existing. On the other hand, an entrepreneur is someone who invests energy, resources, and time to build a model that is original and has been founded from scratch.
Entrepreneurs find it hard to be accepted in society because there is the notion that they are all out to be Ponzi schemes and lies. Most times entrepreneurship is all about breaking barriers to be original and unique. If you notice, most entrepreneurs are unique and are different, even though they are all operating in the same industry.
On the other hand, businesses are existing and are known by the masses so it makes it easier to operate because it is existing and doesn’t need much to be valid because it is well known in society.
3. Entrepreneurship Is Centered On Risk-Taking, While Business Is Not
If there is any individual that loves to take risks when it comes to profit, it’s entrepreneurs. Entrepreneurs love to find out new things, new ways to get things done. They love breaking barriers and reaching new heights. But that can’t be said of a business individual.
Businessmen and women prefer to play it safe, they don’t want to see their pockets go lower than it already is, so they will keep doing the same thing as long as it keeps giving them the same positive results.
4. Business Works On Profit, While Entrepreneurship Works On Passion
I know I’ve written on business making profit its driving force numerous times but it is a fact and it is also a difference between business and entrepreneurship. Businesses and investments like stock exchanges, Cryptocurrency, Casinos, Betting sites are all established for profit-making, if you check out these businesses don’t satisfy or solve a problem, instead they reach the innermost desires of a man, to make money. But entrepreneurship has a different approach.
Entrepreneurship is built on passion; it makes a business and stands by it even when things are not going well. Nicole Faith, founder of 10 Carat Creations breaks entrepreneurship down by saying
“Being an entrepreneur means having a plan and vision but still succeeding or trying to succeed when the plan falls apart and you are left with only your vision. It also means knowing when to give up, especially if your idea isn’t working due to forces outside of yourself”
With this beautiful quote, you get to see that entrepreneurship deals with passion, but it also deals with fortitude, persevering when things are tough. Great entrepreneurs today started with passion, but perseverance kept them going.
5. Entrepreneurship Solves Problems, While Business Creates Problems
Im sure you will be wondering why I wrote what I wrote, but if you check out the statistics, you will see that what im saying is not entirely wrong. I will always emphasize the fact that business is aimed at profit and when a business is aimed at making money and more money, it loses out on the bigger picture, and what is the bigger picture? Giving value to what you are doing. A lot of businesspeople can explain what they do analytically but its never from the heart and they also do not know what happens to their products when things are going wrong, because all they think about is making profits and looking at the better days.
Founder and CEO of NeuroFlow, Christopher Molaro says,
“Entrepreneurship means being the one that is willing to take a leap, work hard enough to sacrifice everything else around you, all in the name of solving problems because no one else is capable or possesses the desire”
Reading this quote, you will see that entrepreneurship also aims to solve problems and do things most human beings will never think possible. For instance, take a look at Michael Jordan, he owns a footwear company called Jordans, when he started this business in the 1980s, a lot of comments were passed around that how will a black man own footwear, it just wasn’t possible, but he did it and today his footwear company is worth billions and he also owns his basketball team. He started the footwear company solely for basketballers, for these basketballers to have shoes that fit their ability to run and jump on the basketball court.
Conclusion
Reading this literature, you may be thinking that entrepreneurship isn’t all that bad after all, but you should know that entrepreneurship is also hard, very hard. You will also see that business in its light can be very beautiful.
There will always be arguments on business and entrepreneurship, which is better, their similarities, differences, and so on. You may not agree with most or maybe all the points listed above, and it’s fine. You can use this literature to find out more differences between business and entrepreneurship for your understanding.
FAQs
Can entrepreneurs be businessmen?
Yes, entrepreneurs can be businessmen, some if not most entrepreneurs are also businessmen. They invest in other businesses to make extra profit.
What is the difference between entrepreneurs and business tycoons?
A business tycoon is an entrepreneur, a serial entrepreneur, and an investor. An entrepreneur is in a lot of cases the boss of himself or leading a person in a company.
What is an example of an entrepreneur?
An entrepreneur is a person who starts a new business and usually risks his own money to start the venture. Examples are Bill Gates, Steve Jobs, and Pierre Omidyar.
What is the meaning of a business tycoon?
A business person is someone with exceptional wealth, power, and influence.
by Abdulganiyu Ibrahim | Nov 8, 2021 | Business & Finance
Why are some Entrepreneurs who are just setting up a business more successful than those who have been in the business for quite a couple of years? How do some Entrepreneurs who are starting a business for the first time make more money, and accomplish much more within a few years of establishing than the great majority of entrepreneurs who have spent years running the same business and haven’t accomplished much? What beginners guide do you need to entrepreneurship?
These are some of the questions I asked my boss when I was still an apprentice at the fashion house. The reason for all the questions was as a result of me knowing I will one day be a boss of myself. And how to fit as one triggered a lot of questions.
In this Beginners Guide to entrepreneurship, I will be sharing some of the things you should know in becoming a successful boss (Entrepreneur) of your own. And trust me it will work out for you the same way it does for my boss and which I am seeing the impact in my business as well.
I know you are very hesitant to know what those things are, but I would like to ask you what that Boss (Entrepreneur) you want to be, really is? Who is an Entrepreneur? And what is that thing you are “bossing” on (Entrepreneurship) Okay, let me save you the stress.
Who Is An Entrepreneur?
An Entrepreneur is a person who buys mean of production at certain prices to combine them into a new product. But that particular kind of person sets up a business primarily to make money, through his/her intellectual property and must take a great deal of financial risk or business risk.
An Entrepreneur is also a person who starts a business and is willing to risk a loss to make money.’ But fortunately, ‘he earns profit as a reward for taking such a risk’.
Entrepreneurship, however, encompasses the art and science of innovation and risk-taking intending to make a profit in business.
Having known what an Entrepreneur and Entrepreneurship means, then let see what I have for you in the Beginners Guide to Entrepreneurship as counselled by my boss.
A Beginners Guide to Entrepreneurship; What I Learned From My Boss
1. Follow your Passion
When I stepped into my boss’s fashion house to learn the profession, the first question he asked me was”why do you want to learn fashion designing?” My answer was”I just like the creativity aspect of the work.” Furthermore, as days passed, he made me know that the reason for the question was to know if I had a passion for the work or was a result of me seeing others in the profession.
Furthermore, he made me realize that if I am due to stand on my own as an Entrepreneur, the main factor that will determine my success in the field is my “passion” for it. The one which has enabled him to move to that other side is called success. So, now you see why you should follow your passion in being that successful Entrepreneur you aspire to be.
When you have passion for that business, you will genuinely love what you do and be willing to invest more extra hours to make that Business blossom.
Hence, passion must be factored into the equation to enable you to succeed as a beginner in your Business. Because it is what keeps you going and moving even when the road seems rough. Following your passion is one of the qualities every entrepreneur should have.
2. Research What You Are Going Into
This is another important beginner’s guide to which most entrepreneurs don’t consider before going into Business.
It is advisable to carry out some research in other to widen your knowledge of the business you are going into. A study of the market is essential to determine if the market conditions are favourable and to check the viability of your business model.
3. Come Up with An Attractive Name for Your Business
As a Beginner in Entrepreneurship, one very important thing which is capable of attracting your target customer is the name you tag your Business; your business name.
Selecting the right and appropriate name for your start-up business does have a great deal of significant contribution to the flourishes of your business.
When selecting a name for a startup, try and ‘conduct a thorough trademark search’ this will prevent you from choosing an already licensed name for another organization or person, which can have you penalized.
However, in choosing a company name, avoid too long and hard to pronounce the name. You should try as much as possible to have a very simple to pronounce a name, so as not to give those that come across the name problem in pronouncing it.
Giving a business a very simple and beautiful name will always leave a lasting memory of your company in people’s heads, which will enable them to keep patronizing you.
Another thing that is very important to consider is when coming up with your business name is; Avoid picking a name that would not capture your business as it grows.
Taking myself into consideration, I sew for men when I started the business and knew as time passed, I would consider females wear also. So it will be okay going by “Brai’s apparel” which has encapsulated both men and women instead of saying “Brai men or women apparel” which won’t suit the business as it progresses. You should consider these seven tips for Naming your Business.
4. Know Where to Get The Funds
Getting finance is another most important thing an entrepreneur should know, taking into considerations in this Beginners guide to entrepreneurship.
Like you know, you can’t mount a house without money, so also with business. You need to have your finances ready.
However, you can get that through your savings, loan, family and friends, investors.
You might even succeed in finding an investor for your startup or small business once you successfully pitch your idea.
5. Have A Unique Approach to The Business
In this Beginners guide to entrepreneurship, I would want you to know that there is always a gap that hasn’t been filled in every business. So it is your responsibility to have if filled by adopting the three traits of an entrepreneur by “Harvey Leibenstein” which are;
Recognizing market trends
New Goods or Process in Demand
Determining profitable activities.
Because you as an entrepreneur should be capable of fixing market failures, deficiencies, and the same process or method that has been used over and over again. Therefore, you should avoid ‘revising business model of existing enterprise’, rather bring your business from a unique angle of”gap-filling”.
6. Master the Concept of Time Management
Time! You need to be very conscious and know how to manage it if you want your business to progress. Time, however, ‘is irretrievable; once it is gone or wasted, you can never get it.
Therefore, it is time management that enables you to plan and control the time you spend executing sequential events on your to-do-do lists. This, however, is simple and easy to do, by adopting Vilfredo Pareto’s 80/20 rule of time management (Pareto’s principle).
This involves accomplishing 80% of a specific activity using 20% of the time you’ve got. This means you should focus on the most prioritized task which can bring more money to your business.
Some things you do are more valuable than other things, even though they share the same minutes and hours. So you can also follow the method I like to consider in managing my time by Brian Tracy’s ‘power of self-discipline’ (194-195) which is the ABCDE method and trust me it will also work for you.
A are must-do tasks with serious consequences for non-completion
B are tasks with little or no consequences for doing or not doing;
C Tasks Have No Consequences
D is for Delegate. Everything you possibly can to free up more time for those that only you can do;
E stands for Eliminate. Discontinue all tasks and activities that are no longer essential to your work and to achieving your goals.
7. Set a Template for Your Business
Having considered all those, you need to set yourself a Template.
This is a self dream or determination of what you want your business to achieve or where you want it to be in the next one year for start, then probably five years after, and subsequent years of your choice. However, this will be a guide and motivation for you as that you have a target to meet.
Therefore it is now advisable you should “be like an eagle that never gets its eyes away from a prey from afar until it gets on it”.
8. Master The Art of Self Discipline
The achievement of business success demands high levels of discipline from you in every area of business activity, both large or small.’ Without self-discipline, no success is possible. As Dwayne Johnson would say “All success begins with self-discipline. It starts with you.”
As an Entrepreneur who is self Disciplined, you will have that total control and power to stick to your decisions, no matter the situation and condition you might face in the business. This is just one of the reasons why you should learn self-discipline.
However, it is through self Discipline you would be able to know the difference between “a wish” and “a goal”. As a “Wish” is only but an ordinary wish, but a “Goal” Is a wish backed with actions. And how can you back your wish with actions to be a goal? Simple!! through self Discipline.
You can be selfly Disciplined by taking into consideration the CANEL FORMULA, which stands for “Continuous and never never-ending.”
Among other things an Entrepreneur should consider in this guide include;
You must have the quality of Obsession.
You must be Devoted to your Business.
An entrepreneur must be Inspirational, which leads to Creativity.
You must be smart enough to handle the Business.
You must be Dynamic.
Conclusion
I would like to sound it as an advice to you; Once you have finally started up the business, and you’ve become that boss you aimed, you must discipline yourself to give it at least 80% of your time and attention while the other 20% should be channelled into researching how to go beyond where you currently are. Remember the market is dynamic.
And finally, in this Beginners Guide to Entrepreneurship, Remember “A journey of a thousand miles starts with a foot footsteps. So, which step have you taken so far among those above? Don’t forget to share it with us in the comment section below. You could also check out these 7 Books That Every Entrepreneur Should Read in 2021
See you on the other side called success.
