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Sometimes, the two terms, namely, an entrepreneur and a manager are considered as synonym, i.e., meaning the same. In fact, the two terms are two economic concepts meaning two different meanings.

Difference between an Entrepreneur and a Manager

Basis of Difference | Entrepreneur | Manager |

1. Motive | The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification. | But, the main motive of a manager is to render his services in an enterprise already set up by someone else i.e., entrepreneur. |

2. Status | An entrepreneur is the owner of the enterprise. | A manager is the servant in the enterprise owned by the entrepreneur. |

3. Risk Bearing | An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in running the enterprise. | A manager as a servant does not bear any risk involved in the enterprise. |

4. Rewards | The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. | A manager gets salary as reward for the services rendered by him in the enterprise. Salary of a manager is certain and fixed. |

5. Innovation | Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a ‘change agent’ | But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur’s ideas into practice. |

6. Qualifications | An entrepreneur needs to possess qualities and qualifications like high achievement motive, originality in thinking, foresight, risk -bearing ability and so on. | On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice. |

An entrepreneur can be a manager also, but a manager cannot be an entrepreneur. After all, an entrepreneur is...