Businessman and Entrepreneur are two terms that are often used interchangeably by people, however we see that the word entrepreneur has a more positive perception attached to it as compared to businessman. Both, a businessman and an entrepreneur, start new ventures to create utilities and earn profits, and in that process they create jobs, solve problems of the customers and help the economy develop as a whole.
The main distinguishing factor between a businessman and an entrepreneur is the outlook of the individual. While a businessman aims to set up a lucrative venture which may be of an existing good or service or a new product, an entrepreneur’s main focus is on innovation and carrying on a project that he or she is passionate about. Businessmen mainly work to earn high profits whereas entrepreneurs work to create value for various stakeholders. Entrepreneurs may also have social benefits attached to their ventures. While both businessmen and entrepreneurs take several risks in their ventures, businessmen take more calculated risks by the virtue of them being more profit oriented. Entrepreneurs on the other hand allow for a greater degree of risks aiming at extraordinary results for the venture as a whole and not just in monetary terms.
In a nut shell a business has more carefully weighed pros and cons with the main aim being profit maximisation whereas an entrepreneur works passionately to create value in the market and society and could be equally profit driven at times. Thus, neither is better than the other as it all depends on the mind-set of the individual. However, we see a trend emerging where the youth aspires to become successful entrepreneurs as opposed to successful businessperson.