Distinction between Entrepreneur & Manager Lecture-7

Differences between Entrepreneur & Manager

An entrepreneur is involved with the start-up process An entrepreneur assumes financial, material and psychological risks An entrepreneur is driven by perception of opportunity A manager with running the business over a long period of time A manager does not have to bear risks A manager by the resources he currently possesses

An entrepreneur initiates change

An entrepreneur is his own boss An entrepreneur gets uncertain rewards

A manager by the resources he currently possesses

A manager is a hired employee A manager gets fixed rewards and salary

Distinctive features of Entrepreneur & Manager

Entrepreneur Perception of opportunity Risk-taking Tactical planning Interpersonal communication negotiating Trouble shooting Making it a growing concern Innovator Motivator Manager Setting of objectives Policy formulation Strategic planning Formal communication Organizing Motivating Controlling Administrator Skilled, knowledgeable

Determined
Committed Visionary

Confident
Loyal Implementer

Distinctive features of traditional managers & the entrepreneur

Motives
Primary Motives

Managers
Wants promotion and traditional corporate rewards. Power motivated

Entrepreneur
Wants freedom, Goal oriented, self reliant, and self-motivated

Time orientation
Action Skills

Responds to quotas and budgets, the next promotion or transfer

Delegate action. Supervising and reporting takes most of energy Professional training. Often B school trained. Abstract analytical, people mgmt and political skills Sees others in charge of his or her destiny. Can be forceful and ambitious but may be fearful of others in case of optimism Primarily on events inside organization Careful Has market studies done to discover needs and guide conceptualization

End goals of 5-10 years growth in view. Takes action now to move the next step
Gets hands dirty. May upset employees by suddenly doing their work Knows business intimately. More business acumen than managerial or political skills Self confident, optimistic and courageous

Courage & destiny Attention Risk Market Research

Primarily on technology and market place Likes moderate risk. Invests heavily but expects to succeed Creates needs. Creates products that often cant be tested with MR. Potential customers dont yet understand them. Forms own opinion

Distinctive features of traditional managers & the entrepreneur

Motives
status

Managers
Cares about status symbols

Entrepreneur
Happy sitting on a wooden box if job is being done

Failures & Mistakes

Decisions

Strives to avoid mistakes & failures. Postpones recognizing failures

Agrees with those in power. Delays decision until he gets a feel of what bosses want Please others Sees system as nurturing and protective, seeks position within it Works out problems within the system

Deals with mistakes and failures as learning experiences

Follows private vision. Decisive and action oriented Pleases self and customers May rapidly advance in a system, when frustrated , reject the system and form his or her own Escapes problems in large and formal structures by leaving and starting on his own Entrepreneurial small business, professional or agricultural background Lower class in some earlier studies, middle class in recent ones

Who they serve Attitude Toward the system Problem-solving style Family history Socio economic background

Family members worked for large organizations Middle class background