Entrepreneurship

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Similarities and differences between a manager, a business owner and an entrepreneur

Date: 12/8/2011 Version: 1.0 Student Number: 110369257 Module: BUS1004

Similarities and differences between a manager, a business owner and an entrepreneur By Henry Amm

Introduction
The public perception of entrepreneurs today is almost legendary. They seem to seamlessly start up small businesses and make them grow and develop themselves almost overnight to big successes. (Beaver, 2005) This essay will briefly cover the differences and similarities between managers, business owners and entrepreneurs.

Differences and similarities between managers, owners and entrepreneurs
Back in the 19th century being a businessman, in other words being an
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Therefore he often runs a lifestyle firm that is based on trade or craft which, however, will not grow to any considerable size. The entrepreneur in turn is opportunistic, innovative, self-confident and acts proactive and decisive. He is highly self-motivated by his vision and is therefore willing to take even greater risks and can live with a high uncertainty. That is why the entrepreneur has a growth firm and is pursuing growth and personal wealth. Lastly the manager is administrating, or in other words managing, an entity that does not belong to him. His ‘purpose’ is to build up the organisation, by means that are similar to larger firms. (Burns, 2007) However there are some exceptions from that generalization: An owner-manager of course can have a growing business, while an entrepreneur could manage a business he owns together with a business associate and therefore has not complete control over the capital. (Burns, 2007) As Fraja (1996) suggests every firm can be assigned to either one of the following types: Either it is an entrepreneurial firm, where the owner-manager or entrepreneur is in exclusive control, organizes production, borrows funds and retains any residual returns from his work. Or it is a managerial firm, where the individual that has the right to residual returns remains outside the company and the individual that has the

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