What are the differences between Entrepreneur and Professional Manager?

Entrepreneur and professional managers are the two sides of the coin. Their individual path will make the differences between success and failure for the enterprise.

An effective entrepreneurial strategy should be an integral part of an enterprises competitive positioning. The progressive development in the size of business and the separation of ownership and management in enterprises has made management a distinct profession. Although both strive to achieve the similar goals they are said to distinguish themselves in varied measures.

Entrepreneur: Entrepreneur is one who searches for change, responds to it and exploits opportunities, and the innovation is the specific tool of an entrepreneur.

Professional Manager: A Professional manager is one who specializes in the work of planning, organizing leading and controlling the efforts of others by the systematic used of classified knowledge and principles. He subscribes to the standards of practice and code of ethic established by a recognized body.

Differences between Entrepreneur and Professional Manger:

BasisEntrepreneurProfessional Manager
1. MotiveThe main motive of an
entrepreneur is to start a
venture by setting up on
enterprise. He understands
the venture for his
personal gratification
The main motive of a
professional manager is
to render his service in
an enterprise already set
up by someone else.
2. StatusAn entrepreneur is the
owner of the enterprise
A professional manager
is a servant in the
enterprise owned by the
3. Risk bearingAn entrepreneur being the
owner of the enterprise
assumes all risks and
uncertainly involved in
running the enterprise.
A professional manager
as a servant does not
bear ant risk involved in
the enterprise.
4. Rewards The reward entrepreneur
gets for bearing risks
involves in the enterprise
is profit which is highly
A manager gets a salary
as a reward for the
services rendered by
him in the enterprise.
Salary of a manager is
certain and fixed.
5. InnovationEntrepreneur 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 entrepreneurs ideas
into practice.
6. Qualifications An entrepreneur needs to
posses 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