Difference Between Entrepreneur and Professional Manager

Difference Between Entrepreneur and Professional Manager

These are the differences between entrepreneur and professional manager:

  1. Status
  2. Target
  3. Decision Making
  4. Rectification of Wrong Decisions
  5. Innovation
  6. Risk Bearing
  7. Skills
  8. Qualification
  9. Rewards


An entrepreneur is the owner of his enterprise. He makes his own investments and owns his business. A manager is just an employee in the enterprise which is owned and run by an entrepreneur.


The main target of an entrepreneur is to start his venture by setting up a sole trader firm or company. He sets his own goals and strives to achieve them. The main goal or motive of a manager is to give his services to an enterprise set up by someone else i.e. an entrepreneur.

Decision Making

All of the policies and strategic decisions, like those comprising expansion diversification, take-over, mergers, capital budgeting affairs, pricing policy, etc. are taken by the entrepreneur. All those managerial, and operational decisions that would have an impact on the short- and medium-term results are taken by the managers.

Rectification of Wrong Decisions

The wrong decisions taken by the entrepreneur may not be rectifiable and may result in losses or even closure of the unit. whereas the wrong decisions taken by the manager can be amended and rectified by the entrepreneur.


An entrepreneur innovates and exploits his innovation commercially. He keeps on changing the combination of the factors in order to increase profit and productivity. He acts as an innovator also called a ‘change agent’.

A manager is merely an officer or an executive who is appointed for the promotion of the unit. He simply implements the plans prepared by the entrepreneur and gives them practical shape. He is just a product of change.

Risk Bearing

An entrepreneur being the owner of his unit undertakes all the risks and uncertainty of running his enterprise. A manager doesn’t bear any risk because he is paid a fixed salary.


The skill expected from an entrepreneur is in the form of creativity, innovation, desire for high achievement, intuition, etc., whereas a manager depends on public dealing abilities and conceptual abilities.


An entrepreneur doesn’t need to have a distinct degree from a reputed university. Rather qualities like foresightedness, risk-taking, hard work, creative thinking, etc. are more important. On the other hand, a manager nowadays needs to possess a degree in the stream of management theory and practice. He has to appear for an interview to get a job.


The reward of an entrepreneur is the profit earned by him. Entrepreneur reward is uncertain and variable. The higher the profits, the better the rewards and vice-versa. A manager gets his monthly salary as his reward for the services rendered by him. And his rewards are certain & fixed and regular.

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