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. Dictionary Meaning
2. 2. Definition
3. Commercialization
4. Financial risk
5. . Financial risk
6. Idea-cash conversion; so on…

• Crux

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 ACKNOWLEDGEMENT

The document is not my own creative writing. It has

been composed by selecting material from different websites
for purely academic purposes.

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 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

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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 Invention is the conversion of cash into
conversion of ideas into cash. Because ideas. Because inventor spends money to
entrepreneur makes money from his create his inventions and may be unable to
ideas by capitalizing them. monetize them.
Ideas Cash 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

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The entrepreneurs embrace the risk and Primarily driven by the educational
are driven by the profitability of the potential of his invention
product or service.

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 Inventors often make a small fortune out of
ultimate financial return as it is the a big one, as they focus on discovering
driving force. 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

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They rely more on extensive amount of They rely more heavily on "gut" feelings or
research they conduct rather than intuition than on past experience.
intuition.

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 An inventor’s life goal is to create
substantial business. something new

17. Preferred Work Mode

Most of the entrepreneurs are group An inventor prefers to work individually.
oriented. They like to work in teams to
make their idea a practical success.

18. Role of Research

Research is a necessary evil for the For an inventor research is an enjoyable
entrepreneur. avocation.

19.Recognition
Usually entrepreneurs gain team Inventors enjoy personal recognition.
recognition.

20. Financial Goal

Their financial goal is to fund future Their financial goal is to fund future
retirements. inventions.

21. Core Competency

‘Incremental improvements’ is the core ‘Discontinuous inventions’ is the core
competency of an entrepreneur. competency of an inventor.

22. Preference

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They work to solve customers’ Their preference is to solve complex
problems. problems.

23. Dogmatism
Dogmatism level is low among High level of dogmatism is seen in
entrepreneurs. 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.