With the improvement of the economy over
the past decades and the expansion of companies in a national and international
level, questions have emerged in order to separate the major participants and
influencers at the operations of an organization. Management and
entrepreneurship play a different role but they contribute in a different way
to the success of a company. Both are the “key players” in the process of an
enterprise but because of their different characteristics, it is difficult to
accurately define when the role of the one stops and the other one starts.
Though there is slight differentiation between management and entrepreneurship,
it is hard to say whether they are two sides of the same coin or if
entrepreneurship represents a totally different aspect.
Entrepreneurship and management are both
very important in the progress of economy. Entrepreneurship is the process of starting new businesses, generally in response to opportunities. Entrepreneurs are pursuing
opportunities by changing, revolutionizing, transforming, or introducing new products or services, while management is the
organization and coordination of the activities of a
business in order to achieve defined objectives. In management, there are
executives with no inborne traits, forced to focus on the operating demands and
depend on what other people do or don’t do. They focus on problem solving
capability and decision making, rather than social skills and inborne traits.
These executives called managers, are the basic ”ingredients” of the business
enterprise and have the ability to master effectively the given resources, take
advantage of their strengths and decrease their weaknesses.
In management, we are able to balance the functions of the enterprise
like managing other people’s work. Planning is based on growing risk and
decisions are made, based on success factors. There is the possibility to be
more aggressive in order to reach the desirable outcome that the top managers
set. There is also the ability to manage other people and resources in order to
reach the goals of the company. All procedures are done in a well-established
and low risk way.
On the other hand, talking about entrepreneurship we introduce a term
with more opportunistic participants. Entrepreneurship is the ability to
innovate by well managing the given resources both human and material. Entrepreneurs
are first managers of themselves and then of others, so as to have the maximum
profit. In entrepreneurship while motivation exists, inspiration is also
required in order to get the 100% of the team, because in entrepreneurship
there is bigger appetite for profit. In entrepreneurship unlike management,
there is self-motivation and optimism about the next steps, though sometimes
experience has shown that proactiveness may lead to failure. But as the
representatives of entrepreneurship go against the flow, they make their own
rules in the game of business and the break the existing statuses, by creating
new opportunities without losing their enthusiasm. In entrepreneurship, there
is more personal
Both in management and entrepreneurship, there is the need of organizing
and controlling. Organizing is the ability to organize many things from time
management to analysis of activities and decisions. Another operation shared by
both, is the ability to motivate and communicate. This is very important
because it has direct impact on both work. If there is lack of communication
and motivation in the team, then the team doesn’t work effectively and fails to
reach its goal. This means that the message cannot get through to the team.
Controlling and directing everything is a characteristic that is found in both
notions, but taking into consideration entrepreneurship, this might lead to
problems when the company starts to grow.
While a large and quickly growing discussion has been done in order to
understand the differences between the ideas of management and entrepreneurship,
we are still in the process of identifying the differences between them. After
reviewing the available literature and exploring the articles in journals,
there is no clear conclusion as to a definite way to distinguish management and
entrepreneurship. Although there are major differences in each of them, it is
not possible to get a clear view where the characteristics of the one start and
the other one’s begin.
Although while doing the research significant differences where
encountered like risk taking or ability to well manage the resources, on the
other hand big similarities have been found. For example, the common
characteristic of motivation and inspiration about achieving a specific goal.
In a sense we came to a conclusion that entrepreneurship is the beginning of a
new company and management is the work that should be done in order to have the
desirable results. But there is still an uninvestigated area in where the role
of one stops and the other begins.