In case of school or college when you have to complete a school project under the supervision of your teacher than in a way it is similar to management, however, if you are given a project where you have to handle everything and there will no supervision from the teacher than in a way it is similar to entrepreneurship. Entrepreneurship and management both involve managing the company and if you are one of those people who think that both are same then you are wrong as if you look closely then there are many differences between the two, let’s look at some of the differences between entrepreneurship and management –
Entrepreneurship VS Management
Meaning
Entrepreneurship in simple words refers to process of launching or starting a new business which is small and is often termed as startup and that is the reason why approach of entrepreneur to work is informal in nature while management in simple words refers to process of controlling as well administrating the overall operations of the company which is big in size and that is the reason why approach of management towards work is formal in nature.
Risk-Taking Capacity
In case of entrepreneurship the risk-taking capacity of the entrepreneur is higher because he or she has the authority as well as the responsibility with regards to the running of the business but as far as management is concerned their risk-taking capacity is limited as they are answerable to the owner of the company. In simple words, while in the case of entrepreneurship impulsive and risky decisions can be taken but as far as management is concerned such impulsiveness and risky decisions cannot be taken easily.
Size of Business
In case of entrepreneurship size of the business which entrepreneur manages is small as he or she is the whole and soul of the business and there is no one to support him or her and that is the reason why entrepreneur manages small or medium business only but as far as management is concerned they manage large companies.
Status in the Company
In the case of entrepreneurship, the entrepreneur is the owner of the company while as far as management is concerned no matter what their position in the company is but they will always remain the employees of the company.
Reward
In the case of entrepreneurship, an entrepreneur gets profit for taking risk of doing the business while in case of management they get a salary for doing their job. In simple words in case of the management reward is fixed as management gets salary even when the company is in a loss but as far entrepreneurship is concerned their reward is fluctuating as in case of good profits they get handsome returns and in case of loss they will have to bear the loss.
Creativity
In case of entrepreneurship, there is plenty of scope for creativity as an entrepreneur is driven by self-motivation, courage, and determination while as far as management is concerned there is less scope of creativity as management is driven by following the system and process laid by the company which limits the creativity of the manager.
As one can see from the above there are many differences between the two and that is the reason why one should never use both terms interchangeably as their meaning, scope, as well as reasons for which they are done, are different.