An entrepreneur, a businessman, and an industrialist are three different things. Here is an example of the differences.
What is the difference between an entrepreneur, a businessman, and an industrialist? An entrepreneur runs a non-profit organization or a business for a personal profit.
A businessman does this for financial gain instead. At the same time, an industrialist will do it for increased production and services.
For example, Starbucks is owned by Howard Shultz, whom I believe is the most prominent figure of entrepreneurship today. On the other hand, Ray Kroc owns McDonald’s, who only started as a salesman looking to become rich. How can you know these differences?
Let me explain how they each make their money in three different ways.
An entrepreneur, a businessman, and an industrialist have many things in common. For instance, they all earn their living by working on or investing in private business ventures.
They are generally responsible for creating jobs and livelihoods for others! However, unlike employees who receive regular paychecks via a company’s payroll department, successful entrepreneurs do not take orders from anyone.
When you become a businessman or industrialist, you will be exposed to the extreme positive and negative consequences of outside factors. Factors such as the economy and politics, among other unpredictable occurrences, may affect your business (e.g., natural disasters).
Difference between an Entrepreneur, a Businessman and an Industrialist- in a nut shell
Meaning of Entrepreneur
Many people confuse the word entrepreneur with the word business. An entrepreneur is someone who is creative, hardworking, and independent. They are someone who has the ambition to start a business and follow their own ideas and plans.
When new jobs are created, the government is quick to point to the entrepreneurs as the reason for economic growth. Most entrepreneurs fail, but there are many that are very successful.
Characteristics of an Entrepreneur
Entrepreneurs are optimistic and persistent and have a strong desire to succeed. They’re self motivated, and able to work long hours in order to make their business a success. Entrepreneurs are able to recognize opportunities and quick to implement decisions.
Entrepreneurs have taken over the world. They seem to be everywhere, and we hear about them every time we pick up a newspaper or open our social media accounts on the Internet. Therefore, I will explain why someone would make an ideal entrepreneur these days.
1. New Business Ventures
While for many, the average entrepreneur’s life may look like a dream come true, there is more to it than the public might realize.
Perhaps one of the most misunderstood qualities of entrepreneurs is their passion and drive for starting new business ventures.
Many believe that all that entrepreneurs do get rich quickly. However, behind every eye-catching company is a story so fantastical and creative that only an entrepreneur would ever be able to dream it up.
2. Idea Driven
An entrepreneur is someone who starts a business. They’re the ones who come up with the idea for a product or service. They want to see if people will buy it or not. They know that there’s a chance that people won’t buy it at first, but they’ll try to make it better so that people will buy it at last.
3. Fearless Attitude
Entrepreneurs are fearless. A true entrepreneur would know how to turn their business around if it seems to be failing. They understand how to exert extra effort to prevent their business from crashing and burning. However, suppose it looks like more damage is inevitable.
In that case, they aren’t afraid of minimizing their losses and using the money they have leftover to launch a whole new project – one that takes less risk!
Many young entrepreneurs began their journey with minimal funds and skills necessary for success in the marketplace. They are role models for those thinking about starting up their project!
4. Knowledgeable and Skillful
Entrepreneur is knowledgeable and skillful enough to make money by themselves. But as an entrepreneur, you’ll know that nothing is ever straightforward. You need some help along the way because no one person can do everything or have all the skills required to run a successful business.
5. Try to do everything on its own
An entrepreneur doesn’t wait for luck to come knocking on their door. They are responsible for developing innovative ideas that will bring in new clients through clever and strategic marketing techniques.
Meaning of Businessman
A businessman is an individual who is concerned with the profit of his business. A good businessman has to be ready to take chances to make a profit. He is a person who takes decisions and acts upon them. A businessman is one who builds his or her career on the foundation of character and competence.
A businessman is one who is innovative and a leader. He will not just sit and wait for some opportunity to come his way. He will instead, anticipate the opportunities and go out and grab them.
Also Read: IKEA Business Model Case Study
Characteristics of a Businessman
A businessman is someone who works in business. They are most often associated with buying, selling, and producing goods locally or internationally. Nonetheless, they may occasionally work independently of any corporate business structure to carry out their hired job (e.g., a sales representative).
1. It’s a Rat Race
As a rule, almost every businessman goes after the more popular products in their target market. They don’t look for new ideas or concepts unless they happen to be experts in their niche.
Business owners usually want to open a business in a market with lots of competitors and consumers because they hope to grab a slice of the larger market pie with their company.
2. Less risk-oriented mindset
The words ‘a businessman’ and ‘an entrepreneur’ seem to sound the same. A business person has businesses and employs other people to work for him. However, the critical difference between a businessman and an entrepreneur lies in their mindset. An entrepreneur takes more risks with time and money than a businessperson would.
3. Calculated business planning
A successful businessman knows that you have to do things differently from everyone else if you want to succeed. There’s little chance for innovation and progress if you all do the same thing. To keep your business on top, you must be willing to experiment – whether it means applying marketing strategies or even investing in research & development.
However, an entrepreneur can’t take on every danger that comes their way. Businessman tends to delegate the details to people they can trust who know the most about a specific business area, such as customer relations or management of finances!
4. Help from outside sources is a must
Business owners can struggle when it comes down to managing their own business as they have to take care of so many other aspects. Many of them hire people to work with them and ensure that all the essential areas are accounted for and stay afloat!
For example, a store owner will likely depend on a cashier who will help manage money flow and ensure their shelves remain stocked with enough items.
5. A variety of factors affect the business
A business is like a fire. You have to keep stoking it or run out of fuel and soon find yourself out in the cold, forgotten by the world and with no way back home. When there are lulls in your business, you need to continue investing in marketing, brand building, and sales promotion.
Suppose you don’t continue generating income from your existing customers. It will be harder to get new customers or attract new investors, and you could quickly go backward. So make sure to keep an eye on everything in fashion so that you aren’t left behind!
Meaning of Industrialist
The industrialist is a new type of rich person in the modern world. They are wealthy but not as rich as the old-style aristocrat. Industrialists are self-made men and women, who have built their empires from the ground up. Their origins were in the middle or lower-middle class.
Industrialists are successful because they have the drive and desire to build something big and make lots of money. They are usually entrepreneurial and visionary. They hire, motivate, and inspire the people beneath them. The word industrialist, with its root in industry, is a word that combines wealth and achievement.
Characteristics of an Industrialist
They possess the most valuable team-building and leadership skills. A characteristic of a good industrialist is their ability to identifying the potential of employees, during the interview process.
This is usually done through a group discussion, where the candidate is asked to participate and answer questions in front of other employees. They are also required to perform a task, and the first impression of his or her work will be considered, in the interviews.
1. Sky is the limit
An industrialist, also known as a leader of industrial innovation, has only one objective in mind. They are constantly developing newer industries that can create jobs by hiring people (often directly) or licensing their creations to other entrepreneurs (e.g., helping grow their businesses).
In addition, entrepreneurs are often great salespeople themselves. They have made it a point to promote the products they have created and worked hard to bring them to fruition through their networks of business partners with whom they often share a close friendship.
2. I love the word R-I-S-K
Entrepreneurs are not like the rest of the business world. People may cheer them on because they believe in creating games in a new industry, but they have to work harder than that!
To start a business, one has to make sure there’s a market for their product before promoting and selling it across existing companies’ networks.
3. Failure is the part of the game
Most industrialists don’t have to worry about their products’ failures failing them. They usually pay only the interest on loans because they use factories, warehouses, and machinery that they own but might also work with other companies.
In contrast, they refine and repackage their existing products or create new ones. It’s one of the ways the industrialist builds up a brand line or starts making something similar for another company in the same industry sector. Sometimes, they also lease out production equipment to other companies to gather extra money.
4. Workforce is Everything
An industrialist is a person who owns and runs a factory, processing plant, or other industrial site. As owners, they need to pay for labor and acquire raw materials like metal ore when required.
An entrepreneur only has to worry about purchasing the equipment required for starting their business and hiring staff for support. He can make sure every piece of his business runs smoothly because no one else is like an industrialist who ensures production gets done at his factory.
5. External factors play a vital role
As an industrialist, it is vital to consider the environmental and economic conditions of the area you will be locating your business. You need to know your industry’s local, state, and federal regulations.
As we have seen, there is a massive difference between an Entrepreneur, a Businessman, and an Industrialist. While they share certain qualities necessary for making profits, their functions vary greatly. That’s why there is such a low number of “industrialists.” However, many entrepreneurs and countless business people vastly outnumber them