Entrepreneurship is about business start-ups and renewals. That is, it appears at the time of starting a new business, disappears for some time in the course of stabilizing the venture as an on-going business and reappears in case there is a need for introducing changes in product, market, technology, structure and so on. On the other hand, management refers to ways and means of getting things done from the people in the organization in order to achieve objectives.
In fact, it is said that everyone is an entrepreneur when he actually ‘carries out new combinations,’ and loses that character as soon as he has built up his business when he settles down to running it as other people run their businesses. In developed countries, the distinction between the entrepreneurial focus on start-ups and managerial focus on routine is so sharp that it is argued that once the project has reached a level of maturity, the entrepreneurs must move out and the managers must come in.
Management refers to the art of getting things done by other people. Entrepreneurship refers to starting a venture with a profit motive in mind. It also involves the aptitude to obtain substantial risks for that venture. Below focus on some relationship between Entrepreneurship and Management –
- A manager, just like an entrepreneur needs to be an immediate and efficient decision-maker at their relevant levels.
- Both the manager and the entrepreneur needs to be excellent at communal skills. This is essential to persuade people to work with them.
- Just as an entrepreneur, to be effectual as a manager, a person needs to accomplish himself with self-reliance. This self-belief inspires other people as well and makes them want to work for the company.
In developing countries, however, the concept of owner-manager seems more apt for entrepreneurship as the entrepreneur remains attached even to the day-to-day operations of the venture.
In fact, their lacking in managerial skills are often forwarded as the cause of business failures. Just as managers are expected to play entrepreneurial roles in times of need, likewise the entrepreneurs must also demonstrate managerial abilities for the success of their ventures. Irrespective of whether the entrepreneurs pave way for the managers or they themselves assume the managerial responsibilities, it is possible to distinguish between the terms entrepreneurship and management.
Some key differences between Entrepreneurship and Management are as follows –
- An entrepreneur is an owner of the business and a key person behind the structure of an enterprise. Whereas management is employees of an organization as they have to execute their duties in the concern of an organization and owners thereof.
- Being the owner of the business an entrepreneur bears all the risk of success and failure of the business. Management is not concern about the risk of business failure as they are just employees of an organization.
- Entrepreneurs are motivated to a start new venture with their unique business ideas whereas management is motivated to supervise an accessible business of the entrepreneurs in a more effectual approach.
- Sustainable development of the company is the main motive of entrepreneur whereas management is motivated towards the execution of identifying organizational goals.