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Entrepreneurship vs. Management Differences

Entrepreneurship focuses on starting new businesses while management focuses on operating existing businesses. Entrepreneurs are not constrained by resources and take risks by challenging the status quo, while managers work within the resources available and are risk-averse. Entrepreneurs are generalists who found opportunities and mobilize resources, while managers specialize in areas like organization, procedures, and people management. While entrepreneurship deals with starting up, management takes over the routine operations once a business is established.

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Saroj kumar Biswas
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1K views2 pages

Entrepreneurship vs. Management Differences

Entrepreneurship focuses on starting new businesses while management focuses on operating existing businesses. Entrepreneurs are not constrained by resources and take risks by challenging the status quo, while managers work within the resources available and are risk-averse. Entrepreneurs are generalists who found opportunities and mobilize resources, while managers specialize in areas like organization, procedures, and people management. While entrepreneurship deals with starting up, management takes over the routine operations once a business is established.

Uploaded by

Saroj kumar Biswas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Difference Between Entrepreneurship And Management:

Sl No. Basis of Differentiation Entrepreneurship Management


1. Focus Business start-up Ongoing operations of an
existing business

2. Resource orientation The entrepreneur does not A manager is constrained by


feel constrained by the resources at his disposal.
resource. Entrepreneur
mobilises the resources.
3. Approach to the task Informal Formal

4. Primary motivation Achievement Power

5. Status vis-a-vis enterprise Owner Employee

6. Primary economic reward Profit Salary

7. Innovation orientation Challenges the status Maintains the status quo.


quo, that is, the existing.

8. Risk orientation Risk taker Risk- averse

9. Approach to decision making Driven by inductive logic Driven by deductive logic and
and personal courage and research.
determination.

10. Scale of operations Small business Large business

11. Primary skill requirement Opportunity spotting, Organising, system designs and
initiative, resource, operating procedures, people
negotiation. management.
12. Specialization orientation Generalist has to know Specialist
and do all the trades by
himself.

Relationship Between Entrepreneurship And Management:

•Entrepreneurship is about business start-ups and renewals. That is, it appears at the time of
starting a new business, disappears for some time in the course of stabilising the venture as an
ongoing business and reappears in case there is a need for introducing changes in product, market,
technology, structure and so on.
•In fact, it is said that everyone is an entrepreneur when he actually ‘Carries out new combinations,
and loses that character as soon as he has built up his business, when he settles down to running it
as other people run their businesses.

•In developed countries, the distinction between the entrepreneurial focus on start-ups and
managerial focus on routine is so sharp that it is argued that once the project has reached a level of
maturity, the entrepreneurs must move out and the managers must come in.

•In developing countries, however, the concept of owner-manager seems more apt for
entrepreneurship as the entrepreneur remains attached even to the day-to-day operations of the
venture.

•In fact, their lacking in managerial skills is often forwarded as the cause of business failures. Just as
managers are expected to play entrepreneurial roles in the times of need, likewise the
entrepreneurs must also demonstrate managerial abilities for the success of their ventures.

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