Difference Between Entrepreneurship & Small Business Management

The terms “entrepreneur” and “small business manager” are sometimes used interchangeably, but an entrepreneur plays a different role than a small business manager. Not all entrepreneurs make great managers, and not all managers are cut out to be entrepreneurs.

Entrepreneurs Start Companies, Managers Run Them

As an entrepreneur, you are the dynamic force behind the planning and launching of new business enterprises. You may be involved in all aspects of your company throughout its life span, beginning with the raw startup stage, when the venture is little more than an idea. You handle issues ranging from the company’s product design to determining the most efficient production methods and even finding the company’s first customers.

In contrast, a small-business manager is someone you hire to handle the day-to-day management of your startup. The manager’s goal is to keep your company growing and operating efficiently. In some cases, you may bring in a skilled small-business manager to build your company into a larger entity. This typically happens after you realize that your creative vision only take your company so far, and having an experienced manager on board to direct day-to-day operations will allow the business to continue to grow.

Risks of Operating a Small Business

Owning a business requires a recognition and acceptance that your company could fail. Failure could mean a loss of all the money you have put into the company, a loss of the time you devoted to creating the business, as well as the personal disappointment that comes from business failure.

Small business managers face the risk of failure as well, but once the company has achieved certain milestones, the chances of failure are reduced. Small business managers must deal with the pressure of continuing to build the company in the face of ever-increasing competition.

Differing Skill Sets

Entrepreneurs that are most successful usually possess an unusual vision, the ability to identify what products and services customers will want or need in the future, and designing products or services to meet those needs. Small business managers who operate established companies do not necessarily need this predictive ability. For example, someone who operates a restaurant franchise needs to be focused on operational efficiency – controlling food and labor cost and maximizing customer satisfaction.

Many entrepreneurs manage the big picture such as creating strategies rather than overseeing the completion of the smaller tactics and tasks that must be done to implement the strategies. Small business managers are adept at administration – making sure all of these tasks are completed on schedule and within budget.

Creating a Working Environment

For your business to be successful, you must integrate your personality, values, and work ethic into every aspect of your company. If you’re at the office 20 hours a day, your team members will have to commit to long hours as well. An entrepreneurial environment is characterized by high energy, lots of ideas flowing and a sense of excitement about the company’s future success.

A small-business manager seeks to create the most efficient, well-organized work environment possible. A good manager is an effective communicator and motivator – inspiring employees to put forth maximum effort. Seeing bottom-line profit grow through the years motivates managers. Their jobs can best be described as a slow, steady climb to success.