Flow of presentation Who is entrepreneur? What are the qualities of entrepreneur? What are the role of entrepreneur? Who is manager? What are the role of manager? Difference between entrepreneur and manager. Conclusion Bibliography

Who is entrepreneur? A person, who innovates, organizes, manages and takes the risk of running an enterprise. • One who allocates and manages the factors of production and bears risk. • One who has the ability to perceive latest economic opportunities and to devise their exploitation. • The supplier of resources, supervisor and coordinator, and ultimate decision maker.

What are the qualities of an entrepreneur? • Capacity to assume • Personal responsibility • Dedication to work • Mobility and drive • Shrewdness and wide knowledge • Creative thinking • Strong need for achievement • Motivating attribute • Vision and foresight • Capacity to marshal resource • Imagination, initiative Independence • Innovation and rational judgment • Flexibility and sociability

Functions of entrepreneur The main functions of entrepreneur are classified into three broad categories: Organization: An organizer mentally first of all decides certain things like what, how, and how much to produce. He estimates the demand for the commodity and initiates the production. He decides the location of the industry, scale of production and estimates the availability of raw materials, labor, capital etc. Then he co-ordinates the other factors like land, labor and capital in proper proportion, so that he can minimize the cost of production and reap more and more profit by producing more and more quantity at a cheaper price. He supervises the entire production activity. After production is over, he finds proper market for his product and sells them.

Continue…. Risk bearing: An entrepreneur not only organizes the entire production process but also undertakes risks and uncertainties. An organizer starts production with an anticipation of demand for his product. But when he actually brings the product to market, there may or may not be demand for his product. This is a non-insurable risk he has to undertake. Thus a brave organizer has to shoulder certain insurable and non-insurable risks also.

Continue…. Innovation: An entrepreneur must be an innovator to survive in the market and to retain the same position for his product. Innovation means introducing new changes in production or technology or market for the product. Profit as a reward for innovation is not a stable one. It appears, disappears and reappears. Only the imaginative skillful few will remain in the industry for ever.

Role of entrepreneur   An innovator who combines technical innovations and financial finesses. Important role in producing competitive products, processes, and services. Generation of new employments. Local and regional economic development. Improved allocation of resources and transfer of technologies.  

Who is manager? A manager is someone whose primary activities are a part of the management process. In particular, a manager is someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources. Managers in any organization are responsible for the performance of one or more of their subordinates. Managers must mobilize people and resources to accomplish tasks within their department and are also held accountable for the results of their department. Further, their goal is to help the organization achieve a high level of performance through management. Management involves the process of planning, organizing, leading, and controlling the use of resources. (Schermerhorn, 2001).

Roles of a Manager Interpersonal Role: Figurehead-performs activities like greeting visitors, give awards to employees etc Leader- Lead and motivate subordinates Liaison- He is a link between organisation and outsiders. Informational Role: Monitoring- Collects information. Disseminator- Distributes information. Spokesperson- Represents his unit/organisation while interaction with outsiders.

Continue.... Decisional Role: Entrepreneur- Assumes risk in terms of results, due to dynamic factors of business. Disturbance Handler- Tries to control forces that tend to disturb smooth functioning of the organisation. Resource Allocator- Allocates human, financial and physical resources according to needs.

Difference between Entrepreneur and Manager The terms Entrepreneur and Manager are considered one and the same. But the two terms have different meanings. The following are some of the differences between a manager and an entrepreneur. Motive: The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification. But, the main motive of a manager is to render his services in an enterprise already set up by someone else.

Continue… Status: An entrepreneur is the owner of the enterprise. A manager is the servant in the enterprise owned by the entrepreneur. Risk-bearing: An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in running the enterprise. A manager as a servant does not bear any risk involved in the enterprise.

Continue… Objectives: An entrepreneur and a manager differ in their objectives. Entrepreneur’s objective is to innovate and create and he acts as a change agent. where as a manager’s objective is to supervise and create routines. He implements the entrepreneur’s plans and ideas.

Continue… Rewards: The rewards an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. A manager gets salary as rewards for the services rendered by him in the enterprise. Salary of a manager is certain and fixed.

Continue… Fraudulent behavior: An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A manager may cheat by not working hard because his income is not tied up to the performance of the organization

Continue…. Innovation: Entrepreneur 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 ‘change agent’. But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur’s ideas into practice.

Continue… Qualification: An entrepreneur needs to posses qualities and qualifications like high achievement motive, originality in thinking, risk-bearing ability and so on. On the contrary, a manager needs to posses distinct qualifications in terms of sound knowledge in management theory and practice.

Continue… “An entrepreneur could be a manager but a manager cannot be an entrepreneur”. An entrepreneur is intensely dedicated to develop business through constant innovation. He may employ a manager in order to perform some of his functions such as setting objectives, policies, rules etc. A manager cannot replace an entrepreneur in spite of performing the allotted duties because a manager has to work as per the guidelines laid down by the entrepreneur. On the downside, typical manager brings professionalism into working of an organization. They bring fresh perspectives, ideas and approach to trouble shooting which can be invaluable.