The entrepreneur is a person who is motivated to satisfy a high need for achievement in innovative and creative activities. His creative behaviour and innovative spirit which forms a process of an endless chain is termed as entrepreneurship. It is not enough for the entrepreneur to buildup the process, but equally important task for him is to manage the business. He performs entrepreneurial vis-a-vis managerial functions. The entrepreneur enters at a transitional stage in which what is initially with innovation becomes a routine for him the transition from an entrepreneurship to management. Also, the emphasis switches from techniques and analytical methods to insight and to involvement with people. The entrepreneur perceives and exploits opportunity, and the subsequent steps necessary for organisation are pertinent, to management.
The entrepreneur differs from the professional manager in that he undertakes a venture for his personal gratification. As such he cannot live within the framework of occupational behaviour set by others. He may engage professional manager to perform some of his functions such as setting of objectives, policies, procedures, rules, strategies, formal communication network. However, the entrepreneurial functions of innovation, assumption of business risk and commitment to his vision cannot be delegated to the professional manager. Failure to the professional executive may mean a little more than locating a new job perhaps even at a higher salary, whereas failure of an entrepreneur in his efforts would mean a devastating loss to his career. The professional manager has to work within the framework of policy guidelines laid down by the entrepreneur.
This distinction between entrepreneur and the professional (traditional) manager is presented in Table I.