Difference Between An Entrepreneur & An Inventor
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- Words: 1,191
- Pages: 8
Submitted to:
Ms. Zoofishan Sehghal Department of Business Administration University of the Punjab Gujranwala Campus
Submitted by:
Saba Latif D/O Abdul Latif MBA-3rd semester
University of Punjab Gujranwala Campus November 4, 2009
Assignment # 01 Q: Explain the differences between an Entrepreneur and an Inventor?
Outline of Question: • Introduction • Definition
Who is an Inventor? Who is an Entrepreneur?
• Differences between an Entrepreneur and an Inventor: 1. 2. 3. 4. 5. 6.
Dictionary Meaning 2. Definition Commercialization Financial risk . Financial risk Idea-cash conversion; so on…
• Crux
2
ACKNOWLEDGEMENT The document is not my own creative writing. It has been composed by selecting material from different websites for purely academic purposes.
3
INTRODUCTION: The word “entrepreneur” is one of those that can be easier to recognize than define. If we were to ask a dozen different people on the street, we’d get a dozen different answers about what it means to be an entrepreneur ranging from “anyone who owns a business” to “someone who has started a lot of companies” and lines that begin with “the guy who created …”. It would quickly become apparent that “inventor” is the synonym which regularly crop up in discussions for entrepreneur. But these are weak synonyms at best and it is worth exploring why.
DEFINITION: •
Who is an Inventor?
According to Wikipedia: "An inventor is a person who creates or discovers a radically new method, form, device or other useful means that does not exist before." •
Who is an Entrepreneur?
“A person, who undertakes to organize, operates, manage and assume the risk for a business venture is called entrepreneur.” According to Wikipedia: “An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome”
DIFFERENCE BETWEEN AN ENTREPRENEUR AND AN INVENTOR: How an entrepreneur is different from an inventor is explained in the points below:
Entrepreneur
Inventor
1. Dictionary Meanings The word "entrepreneur" is a loanword The word inventor comes form the Latin from French verb "entreprendre" verb “invenire” which means ‘to find’. which means ‘to undertake.’
2. Concept
4
The term entrepreneur applies to The term inventor applies to someone who someone who creates value by offering creates some new product that has not been a product or service, by carving out a existed before. niche in the market that may not exist currently.
3. Commercialization An entrepreneur will gather resources, An inventor develops a new product or organize talent, and provide leadership service, but may not bring it to market. to bring a good or service to market and make it a commercial success.
4. Financial risk Entrepreneur undergoes serious There isn’t a lot of investment required so financial risk as huge amount of money financial risk is low. is invested.
5. Idea-cash conversion Entrepreneurship involves the conversion of ideas into cash. Because entrepreneur makes money from his ideas by capitalizing them. Ideas Cash
Invention is the conversion of cash into ideas. Because inventor spends money to create his inventions and may be unable to monetize them. Cash Ideas
6. Expertise He is an ambitious leader who He is an expert in his field. He implements combines land, labor, and capital to his technical knowledge and expertise to often create and market new goods or introduce new products. services.
6. Innovator/ Inventor The entrepreneur is commonly seen as The inventor is commonly known as a business leader and innovator of new scientist or researcher. ideas and business processes.
7. Driving force/motivation 5
The entrepreneurs embrace the risk and Primarily driven by the are driven by the profitability of the potential of his invention product or service.
educational
8. Responsiveness to feedback An entrepreneur tests the waters, listens An inventor may see this single piece of to feedback, and is not afraid to scrap work as too much of an investment of their an idea in lieu of a new one. time and money, and refuse to listen to what the market says.
9. Relationship Most entrepreneurs are innovators, not Not all inventors are entrepreneurs because inventors. not all of them pursue full business ventures.
10. Connecting solution to its problem An entrepreneur has the determination Although inventors also create new things to connect a solution to its problem. to provide solution to a problem they do not necessarily be able to connect a solution to its problem.
11. Sharing of Ideas Entrepreneurs are reluctant to their He freely shared is ideas and technology ideas with others as they may lose their with others in the hopes that such openness competitive edge over their would advance the science competitors.
12. Focus on financial return Entrepreneurs focus a lot on the ultimate financial return as it is the driving force.
Inventors often make a small fortune out of a big one, as they focus on discovering breakthroughs without regard for their ultimate financial return
13. Control The control experienced by the If the inventor is not entrepreneur himself, entrepreneur is unparalleled if he he has to surrender a lot of control by himself is the inventor. He can make licensing it to some entrepreneurial firm. changes as and when thinks fit.
14. Dependence on Research 6
They rely more on extensive amount of research they conduct rather than intuition.
They rely more heavily on "gut" feelings or intuition than on past experience.
15. Locus of Control According to researchers, mostly Extroversion is one of the strongest introverts come out to be good personality traits of inventors. entrepreneurs.
16. Life Goal An entrepreneur’s life goal is to a substantial business.
An inventor’s life goal is to create something new
17. Preferred Work Mode Most of the entrepreneurs are group oriented. They like to work in teams to make their idea a practical success.
An inventor prefers to work individually.
18. Role of Research Research is a necessary evil for the entrepreneur.
For an inventor research is an enjoyable avocation.
19.Recognition Usually entrepreneurs gain team recognition.
Inventors enjoy personal recognition.
20. Financial Goal Their financial goal is to fund future retirements.
Their financial goal is to fund future inventions.
21. Core Competency ‘Incremental improvements’ is the core competency of an entrepreneur.
‘Discontinuous inventions’ is the core competency of an inventor.
22. Preference 7
They work to solve customers’ problems.
Their preference is to solve complex problems.
23. Dogmatism Dogmatism level entrepreneurs.
is
low
among High level of dogmatism is seen in inventors.
24. Social skills Entrepreneurs possess moderate to Social skills of an inventor are limited. extensive social skills.
CRUX: By looking at the differences of entrepreneur and inventor, it is clear that they are not synonyms at all. An inventor develops a new product or service which does not exist before and may or may not bring it to the market whereas an entrepreneur takes the risk to bring a product to market with the hope of making a profit. It is not necessary for an inventor to be an entrepreneur. Similarly an entrepreneur may or may not be an inventor. The list of fortunate people who are successful in both roles is very short.
8
Ms. Zoofishan Sehghal Department of Business Administration University of the Punjab Gujranwala Campus
Submitted by:
Saba Latif D/O Abdul Latif MBA-3rd semester
University of Punjab Gujranwala Campus November 4, 2009
Assignment # 01 Q: Explain the differences between an Entrepreneur and an Inventor?
Outline of Question: • Introduction • Definition
Who is an Inventor? Who is an Entrepreneur?
• Differences between an Entrepreneur and an Inventor: 1. 2. 3. 4. 5. 6.
Dictionary Meaning 2. Definition Commercialization Financial risk . Financial risk Idea-cash conversion; so on…
• Crux
2
ACKNOWLEDGEMENT The document is not my own creative writing. It has been composed by selecting material from different websites for purely academic purposes.
3
INTRODUCTION: The word “entrepreneur” is one of those that can be easier to recognize than define. If we were to ask a dozen different people on the street, we’d get a dozen different answers about what it means to be an entrepreneur ranging from “anyone who owns a business” to “someone who has started a lot of companies” and lines that begin with “the guy who created …”. It would quickly become apparent that “inventor” is the synonym which regularly crop up in discussions for entrepreneur. But these are weak synonyms at best and it is worth exploring why.
DEFINITION: •
Who is an Inventor?
According to Wikipedia: "An inventor is a person who creates or discovers a radically new method, form, device or other useful means that does not exist before." •
Who is an Entrepreneur?
“A person, who undertakes to organize, operates, manage and assume the risk for a business venture is called entrepreneur.” According to Wikipedia: “An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome”
DIFFERENCE BETWEEN AN ENTREPRENEUR AND AN INVENTOR: How an entrepreneur is different from an inventor is explained in the points below:
Entrepreneur
Inventor
1. Dictionary Meanings The word "entrepreneur" is a loanword The word inventor comes form the Latin from French verb "entreprendre" verb “invenire” which means ‘to find’. which means ‘to undertake.’
2. Concept
4
The term entrepreneur applies to The term inventor applies to someone who someone who creates value by offering creates some new product that has not been a product or service, by carving out a existed before. niche in the market that may not exist currently.
3. Commercialization An entrepreneur will gather resources, An inventor develops a new product or organize talent, and provide leadership service, but may not bring it to market. to bring a good or service to market and make it a commercial success.
4. Financial risk Entrepreneur undergoes serious There isn’t a lot of investment required so financial risk as huge amount of money financial risk is low. is invested.
5. Idea-cash conversion Entrepreneurship involves the conversion of ideas into cash. Because entrepreneur makes money from his ideas by capitalizing them. Ideas Cash
Invention is the conversion of cash into ideas. Because inventor spends money to create his inventions and may be unable to monetize them. Cash Ideas
6. Expertise He is an ambitious leader who He is an expert in his field. He implements combines land, labor, and capital to his technical knowledge and expertise to often create and market new goods or introduce new products. services.
6. Innovator/ Inventor The entrepreneur is commonly seen as The inventor is commonly known as a business leader and innovator of new scientist or researcher. ideas and business processes.
7. Driving force/motivation 5
The entrepreneurs embrace the risk and Primarily driven by the are driven by the profitability of the potential of his invention product or service.
educational
8. Responsiveness to feedback An entrepreneur tests the waters, listens An inventor may see this single piece of to feedback, and is not afraid to scrap work as too much of an investment of their an idea in lieu of a new one. time and money, and refuse to listen to what the market says.
9. Relationship Most entrepreneurs are innovators, not Not all inventors are entrepreneurs because inventors. not all of them pursue full business ventures.
10. Connecting solution to its problem An entrepreneur has the determination Although inventors also create new things to connect a solution to its problem. to provide solution to a problem they do not necessarily be able to connect a solution to its problem.
11. Sharing of Ideas Entrepreneurs are reluctant to their He freely shared is ideas and technology ideas with others as they may lose their with others in the hopes that such openness competitive edge over their would advance the science competitors.
12. Focus on financial return Entrepreneurs focus a lot on the ultimate financial return as it is the driving force.
Inventors often make a small fortune out of a big one, as they focus on discovering breakthroughs without regard for their ultimate financial return
13. Control The control experienced by the If the inventor is not entrepreneur himself, entrepreneur is unparalleled if he he has to surrender a lot of control by himself is the inventor. He can make licensing it to some entrepreneurial firm. changes as and when thinks fit.
14. Dependence on Research 6
They rely more on extensive amount of research they conduct rather than intuition.
They rely more heavily on "gut" feelings or intuition than on past experience.
15. Locus of Control According to researchers, mostly Extroversion is one of the strongest introverts come out to be good personality traits of inventors. entrepreneurs.
16. Life Goal An entrepreneur’s life goal is to a substantial business.
An inventor’s life goal is to create something new
17. Preferred Work Mode Most of the entrepreneurs are group oriented. They like to work in teams to make their idea a practical success.
An inventor prefers to work individually.
18. Role of Research Research is a necessary evil for the entrepreneur.
For an inventor research is an enjoyable avocation.
19.Recognition Usually entrepreneurs gain team recognition.
Inventors enjoy personal recognition.
20. Financial Goal Their financial goal is to fund future retirements.
Their financial goal is to fund future inventions.
21. Core Competency ‘Incremental improvements’ is the core competency of an entrepreneur.
‘Discontinuous inventions’ is the core competency of an inventor.
22. Preference 7
They work to solve customers’ problems.
Their preference is to solve complex problems.
23. Dogmatism Dogmatism level entrepreneurs.
is
low
among High level of dogmatism is seen in inventors.
24. Social skills Entrepreneurs possess moderate to Social skills of an inventor are limited. extensive social skills.
CRUX: By looking at the differences of entrepreneur and inventor, it is clear that they are not synonyms at all. An inventor develops a new product or service which does not exist before and may or may not bring it to the market whereas an entrepreneur takes the risk to bring a product to market with the hope of making a profit. It is not necessary for an inventor to be an entrepreneur. Similarly an entrepreneur may or may not be an inventor. The list of fortunate people who are successful in both roles is very short.
8
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