Who are the investors and entrepreneurs? Both of them are risk takers as we know. Both of them also help our economy grows by making the business sectors. But what is the difference between them. The following are the differences between an investor and an entrepreneur:
- Entrepreneur is the one who focuses on a new business idea. While an investor mainly focuses on business ideas which are established.
- The entrepreneur usually approaches the investor to finance there business by selling stakes. While an investor approaches an entrepreneur, whom they think have the potential to make profitable business, so they can invest money and earn income from his or her investment.
- An entrepreneur contributes the idea and passion (but may also invest money) as well as manage the business. While an investor primarily invests money on the business and usually stays as silent partner.
- An entrepreneur is passionate and dedicated to his idea and would stick to it despite suffering losses or period of breakeven. While an investor is practical and reasonable to an idea and may leave it when losses occur.
- An entrepreneur is usually optimistic to his business. While an investor is more pessimistic and more focused on the things that might go wrong in the business.
- Entrepreneurs view more on the qualitative side of business. While investors view more on the quantitative or financial side of the business.
- An entrepreneur, when starting a business, expect many things (both quantitative and qualitative). While an investor, when investing his/her money on a business, expects more on the ROI (return on investment).
- Entrepreneurs don’t necessarily focus on calculating the most approximate figure of return on a business. While investors usually calculate the return of business and arrive at an approximated or estimated figure.
- Entrepreneurs could start entrepreneurship even without money. While money is a necessity for the investors to start investing.
- Although they can be both owners of a business, an entrepreneur manages the business and knows it more from its sales and operation to the feelings and behaviors of its employees and customers. While an investor may only know the business based on the financial and quantitative reports of the business.
Remember that although entrepreneurs and investors differ from each other, they need each other and they can be a great team to build a successful business. Furthermore, an entrepreneur can also be a financial investor of his or her own business, while an investor can also be more involved in the business he or she has invested.
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Reffrence taken by businesstips