Do you believe yourself to be an entrepreneur or business owner? Most often people use the term interchangeably… especially when talking about start-ups or small businesses. This is a mistake that I often run across, and most of those I’m talking with are involved in established businesses. One shouldn’t confuse management with entrepreneurship. And here is why, despite both being processes, get it twisted and your entity will go down in flames.
Entrepreneurship is the process of identifying an opportunity for which a marketable need exists then figuring out a consistent way to make meaningful returns from solving that abyss.
Business Management is an ongoing process of operating an established business. Managers must be able to deal with the challenges of:
- reacting to customer needs
- making sales
- keeping cash flow positive
Entrepreneurs exhibit the following behaviors:
- creation – starts a new business
- innovation – establishes a new procedure, process, market, or organization
- risk assumption – bears risk of potential loss
- general management – allocates business resources
- performance intention – expects high level of profit or growth