Most of the entrepreneurs in the world think that they can phenomenally transform into CEOs and vice versa. But, do you think it is an excellent decision to make? Well, if yes, then you are asking a fish to climb up a tree. Everyone in this world has their own purpose to serve, but if you mix two personalities into one, then you are doing yourself no good and also with your business. Usually, entrepreneurs do not encompass the quintessential skills and quality set to become the CEO of their own organization and destroy their business. As they say that, there is always an exception to everything happening in this world. Some people happen to perform and manage these two roles efficiently. This might be because they have learned the tactics of the corporate world and are running their firms in an organized way. Moving further, you might be thinking as to what could be the prerequisite for an entrepreneur to be the CEO of his firm? To get the answer to this question, read the blog.
Primary Difference Between a CEO and an Entrepreneur
Entrepreneur: A visionary person who sets up a business, put his resources and money at risk for the sake of profit. He/she sees an opportunity in the market and invests in his/her vision. At the beginning of the business, he/she manages it alone and receives all the profit and loss.
There are specific tasks that only an entrepreneur can do:-
- Understanding the ups and downs in the market
- Setting goals
- Understanding the competition
- Formulating business strategies
- Building teams and assigning work
- Identifying the customer’s need
CEO: The Chief Executive Officer (CEO) is responsible for the overall performance, success, and failure of the entire firm. He is accountable to make hard decisions regarding the company’s needs, values and goals. CEO is answerable to board of directors, but if he/she is the company’s founder or chief stakeholder, then the board of directors plays only an advisory role.
There are specific tasks that only a CEO can do:-
- Understanding all the profit and loss statements of the organization
- Linking and communicating the vision and mission statement of the organization
- Evaluating the success of the firm
- Maintaining the internal and external competitive environment
- Grasping the opportunities for expansion
- Meeting the customers’ need
- Understanding the market and employing strategies accordingly
- Seeing whether standards are being taken into account in the production process or not
- Motivating the employees and maintaining a positive environment in the office
You might be thinking, what is the difference between the two? Well, the main difference does not lie in the title but in the style of working. An entrepreneur’s approach is to shake up the market and do something different that mostly embraces risk. But, if you notice the CEO’s style, you will find that his/her approach is entirely risk averse. When an organization attains ability in the market, every entrepreneur at some point in time starts to think like a CEO. He will try to think about improving his business plan rather than expanding it. After becoming answerable to stakeholders, and the board of directors, he will take a calculative risk because he has budget limits to operate business, and deadlines to meet.
In the end, you must understand that a CEO can tell you a risk but an entrepreneur sees it as a reward. So, it is advised to everyone reading this blog that you must plan your role as per the need of the business. It is not difficult to play both the characters, but you need to have experience and in-depth knowledge of the corporate world. There are some tasks which can only be done by an entrepreneur but not by a CEO and vice versa. Hope you liked the blog!
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