How do Entrepreneurs and Managers differ?
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 pushes the business forward into new areas, whereas managers run companies, according to Virgin CEO Richard Branson. Most companies need both.
http://www.openforum.com/management/video_bransonclip_entrepreneurs.html
I agree, Fahed - Branson is an accomplished and outstanding entrepreneur - who has demonstrated his talents across several successful venture over the years. PC
The difference between entrepreneurs and managers may not seem very large, but they are. A successful manager may make a terrible entrepreneur, and a great business owner may not be a great manger.One of the major differences is in the level of responsibility that each has. No one will argue that a manager does not have a lot of responsibility. They are generally in control of a group of people, and most often they have deadlines and quotas that need to be met.An entrepreneur may or may not be in control of employees depending on the nature of the business. Even without employees to watch over, an entrepreneur has a great deal of responsibility.A manager is concerned about the level of production only as far as his/her job security is concerned. However, even if his quotas are not met, a manager still gets his weekly paycheck. An entrepreneur on the other hood is completely responsible for his livelihood. If he does not perform he does not earn any money. [1]
· An entrepreneur and a manager differ in their standing, an entrepreneur is the owner of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an employee and does not accept any risk.
· An entrepreneur and a manager differ in their objectives. Entrepreneur’s objective is to innovate and create and he acts as a change agent where as a manager’s objective is to supervise and create routines. He implements the entrepreneur’s plans and ideas.
· An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm where as a manager’s compensation is less dependent on the performance of the organization.
· An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A manager may cheat by not working hard because his income is not tied up to the performance of the organization.
· Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive, innovative thinking, forethought, risk-bearing ability etc. Conversely it’s mandatory for a manager to be educated in the fields of management theories and practices.
· An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes and he postpones failure.“An entrepreneur could be a manager but a manager cannot be an entrepreneur”. An entrepreneur is intensely dedicated to develop business through constant innovation. He may employ a manager in order to perform some of his functions such as setting objectives, policies, rules etc. A manager cannot replace an entrepreneur in spite of performing the allotted duties because a manager has to work as per the guidelines laid down by the entrepreneur. [2]
Reference:
http://www.home-business-advantage.com/difference-between-entrepreneur-and-managers.html [1]
http://www.citehr.com/23096-distinction-between-entrepreneur-manager.html [2]
Good post, Hema. Whereas I agree with most of the statements in principle, some overrate the differences between these two archetypes (this trend is apparent in comments by several others as well), particularly where the statements tend to denigrate the role and initiative of the manager archetype… PC
I played Brook Master in an attempt to emulate Arthur Blank, then and now. He and Bernie Marcus started Home Depot in the late 1970s. He is now the owner of the Atlanta Falcons. I think it is fair to say that in his earlier career he was an entrepreneur who wanted to add value to Home Improvement stores. I guess it paid off because he’s a billionaire now. I tried my best to emulate him also as the manager of a football team, but Brook Master says he is more of a consultant. The results are below. It looks like in the transition from an entrepreneur to a manager/consultant Arthur might have become a Taker if my assumptions are correct.
AS AN ENTREPRENEUR
Leader 28 : 16%
Entrepreneur 33 : 19%
Manager 30 : 18%
Trustee 17 : 10%
Intellectual 31 : 18%
Consultant 27 : 16%
Giver 21 : 60%
Taker 14 : 40%
AS A MANAGER
Leader 17 : 11%
Entrepreneur 24 : 16%
Manager 28 : 19%
Trustee 22 : 15%
Intellectual 23 : 15%
Consultant 30 : 20%
Giver 12 : 36%
Taker 21 : 63%
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.
An Entrepreneur has a vision, a dream, skill and hard work to start up a successful business. However a stage comes when the role of the entrepreneur may not just be limited to dreaming and creating vision. He/She has to step up to manage the business successfully and be a part of its expansion. This is when his/her management skills need to be exhibited. An entrepreneur has to now get into the shoes of a manager. Even an excellent vision of an entrepreneur may fail due to poor management. Thus both entrepreneurship and managerial skills go hand in hand in running a business successfully.
It is a valid point swathy,there should be a proper management required for all the entrepreneral ideas. whether it a new venture or an expansion of business.
This illustrates how overblowing the SOLE importance of just one archetype is scary as all types need to exist in order for the others to be effective in tune with the fourth secret of the brook. It is essential for good management structure to exist in an organization for the entrepreneur to make successful the endeavor. Here’s some direction for that: http://www.entrepreneur.com/growyourbusiness/howtoguides/article83618.html
Very good point Swathy, as you stated, “Even an excellent vision of an entrepreneur may fail due to poor management” is huge problem for many businesses and many of them fail because of a poor management that takes place. Great entrepreneurs are strong in phases 1 and 3 and not too stong in phase 2. On the other hand, great managers are heavily involved in phase 2, but have the smallest involvement in phase 1. Based on this analysis it is clear that both entrepreneurs and managers must work together and “fill out” for each other in order to keep the business running and be successful.
I agree, Swathy. An Entrepreneur needs more than a great vision to run a business. He or she must have a team of people surrounding them that will support the vision. This team may include the other archetypes especially managers to ensure to success of the enterprise.
Short and meaningful, Margaux, thanks… assets are shadowed by liabilities… PC
Yes, Margaux, we are all in it together… the action of others affect our flow, so good teamwork implies a judicious combination of archetypal attributes. PC
An Entrepreneur’s goal is to create business out of an idea while manager’s focus lies in executing the work successfully. Enterprenuership in industry solely aims at making money and a successful business while management is a broad term varying from executing to maintaining of ideas or business.
Hence while enteprenuers help in creating jobs and build dreams, managers are part of the dream and help the dreams get executed.
Reference - http://www.zeromillion.com/business/mba/india-needs-more-entrepreneurs-than-managers.html
Thoughtful differentiation, Swathy. PC
I agree with swathys views as an entrepreneurs goal to come up with new business and tap the market potential,where as a manager role is restricted to only,ensuring that the work he is assigned is completed on the given time.
One must be careful to not cast the Manager archetype in the light of the Trustee archetype … PC