Sometimes, an entrepreneur and a manager are considered as synonymous. The two terms are used interchangeably. In fact, the two terms differ in their meaning. The major points of distinction between the two are presented as follow:
1. An entrepreneur is the owner of the enterprise but A manager is just an employee in the enterprise of the entrepreneur.
2. The main motive of an entrepreneur is to start a venture by setting up an enterprise. But the main aim of a manager is to render services to an entrepreneur.
3. An entrepreneur, being the owner of the enterprise assumes all risks and uncertainty. But a manager as the servant does not share any risk involved in the enterprise.
4. The reward of an entrepreneur is profit. But the reward of a manager for rendering his services is salary.
5. All the policies and strategic decisions like expansions, diversification, takeovers, mergers, capital budgeting, pricing policies etc. are taken by entrepreneur. But all the managerial and operational decision relating to day-to-day activities of enterprise are taken by manager.
6. An entrepreneur acts as an innovator to maximize the profits. But a manager simply implements the policies prepared by entrepreneur and gives them practical shape.