We know of many similarities between entrepreneurs and managers. However, to clearly understand these archetypes it is helpful to compare them. Think, research and discuss how these two archetypes differ from each other. Refer to your Archetype-Attribute matrices and research the Internet as you present and discuss your views on this question.
Play BrookMaster, emulating a well-known manager and an entrepreneur, to illustrate your understanding.
An entrepreneur is innovative, creative and intelligent. They are ideas people who put ideas into practice where as, managers implement the ideas of entrepreneurs. An Entrepreneur is a leader, where as a manager is more of a co-coordinator, who can get the job done with a handful of team working under him/her. A manager manages people and ensures that the specific task or target is reached in the given timeline. A manager is a follower and an entrepreneur is a doer. They both serve different purposes in the organization. In terms of risk ,managers does not have to worry much where as an entrepreneur has to worry a lot because it will affect them directly .A manager’s role is to make sure what happens today will be successful. An entrepreneur utilizes today’s functions to way to plant seeds for tomorrow’s success. A manager works with the organization’s mission and his/her business plan dictated by his boss the entrepreneur is independent and sets his own mission without the need for approval or discussion. A manager likes to be in control of all the situations in the work place, where as an entrepreneur works though the people in the organization in order to reach his/her vision.
An Entrepreneur owns the enterprise where as a manager works within the enterprise or organization.
source:http://www.thinkingmanagers.com/management/entrepreneurial-management.php
Informative, Chandrika, thanks. PC
Chandrika, there are some interesting statements in your comments, some questionable, and some that appear to be incorrect (i.e. “managers are followers…”) — we can discuss this in class, time permitting,,, PC
Dear Sir,
Managers are followers in a sense,they can only ensure that the team works so that they reach the goal as per the deadline.Managers can implement new stratergies,rules and regulations.The decision power or capability of a manager restricts only to his/her team and not to the organization as it is the job of the leaders to implement new stratergies,rules and regulations.
This is what I ment when I said that managers are followers
Basic differences we understand are that Entrepreneurs emphasize phase I and III of the 12 steps of purposeful action looking for opportunities and extrospection. Managers on the other hand focus on phase II of the 12 steps looking at how to get the mission complete by utilizing strategy and executing plans to get the job done.
Think about the basic inventor: Entrepreneur by heart looking to create something new to help human kind and make some money. Most will employ a manufacturing company to manage the production of the new product and may even utilize a marketing firm to promote the new invention. Here I think we see the Entrepreneur taking advantage of an opportunity and utilizing the right institutions to manage the execution and deployment.
All entrepreneurs are managers but not all managers are or have what it takes to be successful entrepreneurs. I will come back to this statement but before I do let me briefly discuss some of the major differences between the two.
The entrepreneur typically wants to be in control of all aspects of his or her business – at least in the early stages of growth. The manager, on the other hand, is generally brought on board to delegate authority and responsibility. The entrepreneur does not tolerate failure very well, which is understandable since the entrepreneur has taken on a considerable amount or personal risk. The manager, must be more tolerant of failure and view it as a necessary evil for the sake of growth and development of the employees. Employees who come into a new venture must go through a process of learning about the business and are sure to make mistakes. The entrepreneur will make decisions that are based on a higher degree of intuition than the decisions being made by the manager, who relies more on available data. The entrepreneur will describe or think of his or her company in terms of vision, mission and so on, while the manager will think in terms of productivity and profitability. Entrepreneurs, as we have discovered previously, are risk-takers. Managers, on the other hand, are risk-averse [1].
In terms of tactics and strategy, entrepreneurs are primarily strategists, focused on the long term vision. Managers are strategists too, but also tacticians and are focused on the present [2].
Going back to my initial statement that all entrepreneurs are managers but not all managers are entrepreneurs I was saying that entrepreneurs exhibit some of the qualities of a manager, for example team building (staffing) and organizational layout, but this does not hold true for the manager. For example, managers do not exhibit the risk-taking qualities that the entrepreneur possesses [3].
[1] http://www.entrepreneurship-isemi.com/56114/entrepreneur-and-manager
[2] http://www.e-myth.com/cs/community/view/ms_a/186
[3] http://blogs.bnet.com/bnet1/?p=710
Very good and helpful post, Joshua, and I agree with most of what you have summarized … however, many entrepreneurs are poor managers (I know this from personal experience), and many just don’t want to bother with management (personal inclination) – if such entrepreneurs hire effective managers (personal experience, again), the probability of success increases … PC
Both Entrepreneurs and Managers share in common their commitment to change. But how they bring about change is where they differ. Entrepreneurs use innovation when seeking new opportunities to add value to. Whereas Managers, whom are responsible for directing and controlling, react to changes that raise within an organization on daily basis.
A very good comparison, Margaux — a new viewpoint … how about some references/links? PC
It is a perfect comparision Margaux,both managers and entrtepreneurs requirement commitment to achieve their goals.
Entrepreneurs develop the goals based on a calculated risk and the manager determines how to successfully meet that goal developed by the entrepreneur. The entrepreneur archetype can at times cross over into the managerial archetype based on the situation. The manager has the experience and can use the techniques to solve problems and produce results; while an entrepreneur may be able to produce similar results. However they lack the experience and knowledge to manage people.
Ideally if an entrepreneur is going to be successful they must also carry a partial managerial archetype for when the attributes of a manager are needed. A manager does not take risk, where an entrepreneur does. For an entrepreneur their rewards are unknown but for a manager they are typically fixed or salaried and compensation is known. Entrepreneurs follow their own rules and initiate change, where as a manager follows standard procedures and rules already set in place by the organization.
During my research I found this article explaining how entrepreneurs operate and where managers come into the scene. The document is lengthy but on page 11 there is a good comparison of entrepreneur archetype and manager archetype.
http://www.scribd.com/doc/2197576/Entrepreneurship
This is very good, Brad. PC
Shreesh,
The thinkingmanagers.com link says some interesting things. The only thing that seems contradictory to Purposeful action upon first reading it is the quote:
“The manager is supposed to develop the drive and opportunism of the entrepreneur”
I thought the purposeful entrepreneur was supposed to seek out needs to fulfill, but I suppose guidance from the manager is acceptable
Perhaps the author assumes the entrepreneur already sought the need and in turn should just receive support from the manager archetype.