The Difference Between Entrepreneurs and Businesspeople
Throughout history, businesses and tradesmen have been responsible for much innovation in technology (that would not occur without it), economic growth, and prosperity. All parties benefit from business relationships.
In this article, we explain:
- What is the difference between entrepreneurs and businessmen?
- How do businessmen and entrepreneurs scale business in the 2020s?
- Is business outsourcing a good thing?
- What are the foundations of business excellence?
Businesses offer products and services that consumers want; the businesses make a profit, which they use to hire workers, pay rent, buy equipment, etc. Businesses that make products that consumers want receive a profit. If they don’t, eventually they will go out of business and be replaced by other businesses.
Without business, no one would be able to afford many products and services; they are often much cheaper than creating the product or service by yourself. If you wanted a house built from scratch (assuming it is possible), you would have to pay someone for their labor.
If the business is reputable, then you can trust that they will not cheat or defraud you. If a business advertises a product, they are legally obligated to give customers their money back if it does not perform as advertised. There are many laws and regulations that business owners must adhere to, in order to protect their customers.
The Difference Between Entrepreneurs and Businesspeople
Entrepreneurship is a curious thing. While many people talk about it, few truly understand what it means to be an entrepreneur. So here is an attempt to describe what entrepreneurship really means.
There are two types of entrepreneurs: the ones who create businesses, and the ones who destroy them. A business may be defined as ‘an organized group of people working together to reach a common goal.’ By this definition, an entrepreneur is someone who finds a new business or starts a project that has not been tried before. An entrepreneur is someone who takes on risks in order to achieve rewards.
This is not at all what most people think about when they hear the word ‘entrepreneur.’ Instead, they have ideas of wealth and glamour. As a result, many young people who are interested in their own success choose to become businessmen.
Businesspeople and entrepreneurs are not the same. Businessmen invest in businesses that already exist, hoping to gain a profit from them. This is not the same as starting a business from scratch. It does involve risk-taking, but it is of a much different sort than founding an entirely new venture.
Businessmen often make money for themselves, but they do not create wealth. They merely distribute the wealth that already exists in society. An entrepreneur, on the other hand, creates new businesses and projects that did not exist before. He or she takes risks to better society as a whole, instead of merely looking out for his or her own personal interests.
That’s not to say that you’re just one or the other. You can process the best traits of a business person and of an entrepreneur.
Advancing Organizations: How Entrepreneurs & Businesspeople Scale Business in the 2020s
Technology is the solution to scaling businesses. They can be scaled more efficiently through technology as opposed to physical labor. By combining both new technologies and outsourced labor (virtual assistants), many aren’t yet aware that competitive businesses are assigning a full-time virtual assistant to pair with their digital technologies.
Is business outsourcing a good thing?
Virtual assistants are providing the human touch needed for up to less than 70% of the cost of a traditional full-time employee – often in the same tier of low overhead costs as some popular digital software subscriptions.
Outsourcing is generally a good thing, as it allows us to lower the prices of goods and services by increasing competition. This benefits everyone in society as we can afford more stuff. With lower prices through outsourcing, it’s likely we’ll buy more within our local economies. So in the long term, everyone will benefit.
For example, a company that wants to scale would be well-served by using technology. This is because it has the potential to significantly reduce resource costs while also increasing output. Companies can also be scaled through the use of land, but this is not a practical solution for all companies. The land is too limited and finite in supply for scaling to be effective. Even so, there are some companies that make great use of space. They are able to do so by making use of vertical space. They add up multiple floors at one location, which means that they can produce more services or goods in this way.
Ultimately, scaling through virtual assistance combines the qualities of technology and human labor, without the overhead costs of adding more physical space.
Foundations of Business Excellence: Origins and Principles
The origins of business or organizational excellence are complex and multifaceted. Several different organizations can have foundations for excellence in common, but the actualities of those foundations are usually unique to each organization because of differences in what is valued or rewarded within a given organization at any point in time. Those nuances mean that ‘organizational excellence is not a singular state or condition that an organization must strive toward, but rather it is necessarily plural; there will never be one model for how to achieve organizational excellence.
Having said that, there are some similarities in the foundations of excellence across businesses. If we look at a number of different organizational models, what do they all have in common? What is their shared foundation?
To answer this, we must first define what ‘excellence’ means. Even though the definition of excellence can be debated – and indeed some would argue should be debated as a matter of principle – but there are certain commonalities among definitions. For example, most people agree that excellence is something an organization actively strives for.
Beyond that, however, there are different views about the nature of excellence. Some people think of excellence as a state or condition; some say it is something transient or ephemeral, and others define it as an end-point to be reached. These differences in definition matter because they determine what qualities we choose to emphasize when trying to achieve organizational excellence.
Organizations define excellence by thorough measurement of goals and outcomes through key performance indicators (KPIs) – and luckily MyOutDesk Administrative Virtual Assistants can produce important reports and analytics, helping to make informed decisions and saving time for the professionals to focus on the best outcomes.
ENVISIONING OF A NEW REALITY FOR YOUR BUSINESS
Simply put, MyOutDesk equips entrepreneurs & business owners with tools, strategies, and virtual employees – and when combined, businesses have a competitive edge and find growth while efficient systems and processes are put in place.
MyOutDesk proudly provides additional free business growth guides, books, and strategy calls. See what we are about, and we’ll take the time to learn more about your business and offer solutions to foster top talent and lower operational costs for your company.
Did You Know? MyOutDesk’s origin story is set during the last global financial crisis of 2008. Yes, that’s right — our business started by scaling businesses with virtual assistants during a recession! Pioneers of virtual assistant services, our first client in 2008 went from five to seventeen VAs with a completely revamped organizational model in short order, and he told MyOutDesk, “Our virtual professionals have shaved $250,000 off our monthly overhead.”