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You are here: Home / Entrepreneurship and Career / Top 8 Difference
between Entrepreneur and Manager
Top 8 Difference between Entrepreneur
and Manager
Updated on: November 12, 2018 Leave a Comment

The noted economist Adam Smith was of the view that the owner of
capital, manager, and entrepreneur is the same person, because the
production activities were not as complicated, as these are at present.

Difference between Entrepreneur and Manager

However, the modern economists, particularly J.B.
Say and Schumpeter have recognized entrepreneur and manager as
two different sources of the production and the present day complex
abilities of the business world have also created the difference
between them.

Difference between Entrepreneur and Manager

Hence, there is a difference between entrepreneur and Manager,
which may be explained as follows:

1. Meaning
An entrepreneur is a person or group of persons, who carries out
activities relating to the establishment of industry, and innovations.

The manager is the person who himself works for achieving the
common objectives and also gets the work done from others.

2. Status
The entrepreneur is in the status of the owner.

Manager or organizer is the status of the employee.

Read More: 8 Difference between Entrepreneur and Capitalist.

3. Functions
The main function of the entrepreneur is to undertake the risks in the
establishment of new industries and activities related to innovations.

The Main function of the manager is to manage various sources of

production and to establish coordination between them.

4. Rewards
Profit is the reward for the entrepreneur, but he may have to incur
losses also.

Salary is the reward of the manager and there are no possibilities of

losses to him.

5. Responsibilities
The responsibility of the entrepreneur is much more because policies
are determined by him and he is also the owner of the industry or
business.

The responsibility of the manager is much lesser than that of an

entrepreneur because his function is to implement the policies
formulated by the entrepreneur and that too in the capacity of an
employee. Bonus: 20 Types of Entrepreneurs (Informative Explained).

6. Concern with Time

The entrepreneur is associated with present and future, both, because
he has to keep both in view, during operation of the industry.

The manager is more concerned with the present because he has to

keep the management and control of the industry, in view.

7. Control
The final control of various activities of the industry is of the
entrepreneur.

Control of the managers is on activities related to management,

provided powers have been delegated properly. But, the final control
is of an entrepreneur. 18 Nature and Characteristics of
Entrepreneurship.

8. Conclusion
The difference in entrepreneur and manager
Entrepreneurs are the owners, whereas managers are the employees.
The function of the entrepreneur is to undertake risks and
uncertainties, and take risks in the innovations, whereas the functions
of the manager are to manage and coordinate various sources of work
production.

Profit or loss is the reward of the entrepreneurs, whereas salary is the

reward of the manager.

There some similarities between manager and entrepreneur.

The Entrepreneur is different from Capitalist and Manager

The entrepreneur is different from the capitalist and manager, due to
various reasons. The main function of the Entrepreneur is to take
risks, whereas the function of the capitalist is to make capital
available.

The Entrepreneur earns the profit in return of his service and risks,
whereascapitalist gets interested in capital invested by him. Besides,
the income (profit) of the entrepreneur is quite uncertain, whereas
the income (interest) of the capitalist is certain.

Hence, the entrepreneur is different from capitalist and manager.

Learn More:

 10 Concept of Entrepreneurship (Updated)

 20 Types of Entrepreneurship (Explained)
 21 Importance and Role of Entrepreneur.
 12 Factors Affecting Entrepreneurship Development.
 15 Importance of Entrepreneurship (in Modern Economy)
 19 Role And Importance Of Managerial Economics (Step-by-
Step)
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