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Entrepreneurial Managers vs. Administrators


The differences between the focus areas of entrepreneurial managers and administrators are the subject matter of this paper.

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It is seen that while entrepreneurs are the fund providers and risk bearers, administrators are concerned with assigning work and eliciting performance.

Fundamentally the differences lie in risk bearing and conflict resolution for which entrepreneurs are more responsive.

Again other areas that differ are the procurement and usage of resources.

While ethical values play an important part in business, there are also issues arising out of the need for quick decision making by entrepreneurs for survival and growth of the firm.

Difference between an entrepreneurial manager and an administrator? (ENWK4 – DQ1)


It is seen that entrepreneurial manager is a person who takes risk of business and is the ultimate arbiter of the business. He provides the venture capital and takes the risks of business, ensuring that all areas move cohesively and harmoniously towards achievement of objectives and goals. However, an administrator or manager has a lesser role to play. “A manager is someone who directs a team and an entrepreneur is someone who organizes, manages, and assumes the risks of a business or enterprise. “(Winters, 2008).

Fundamental difference

The primary difference between an entrepreneur and administrator being one of risk bearing and conflict management, both inside and outside the organisation.

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While entrepreneur manager has material stakes and investments in the business, an administrator is staff personnel who delegates work to employees and supervises their performance. “Entrepreneurs are always thinking of ways to make money for themselves and create a successful business, while managers only consider working for others.” (McSnackins, 2008).

Planning and action

A manager is concerned with day –to-day activities of the business enterprise, and is accountable for persons working under him. Thus, the main difference between entrepreneurial managers is that there is need to assess what needs to be done for the corporate, and the manager determines how this could be performed, or achieved. Thus the main area would be policy making and procedural for entrepreneurial, while for administrators, it would be practical and executionary. The entrepreneurial manager lays down policies, procedures and practices, and the manager finds ways and means by which this could be implemented without major problems and constraints, taking the entire work force into consideration.

Main areas of differences

The main areas in which there are perceived differences between entrepreneurial managers and administrators could be seen in terms of the following:

  • Competitive orientation
  • Seizing entrepreneurial opportunities and initiatives
  • Investing material and non-material resources into business
  • Ultimate responsibility of control of resources
  • Opting for flat or deep management structures
  • Reward philosophy – carrot- and- stick determinants for performance and non- accomplishments.

While profits are primary to business and thus to investors, it becomes the ultimate driving motive of entrepreneurs who need to risk capital in business. However, the administrator is not required to make investments, and it is enough if he shows skills in managing funds, without incurring losses to entrepreneurs. However, comparisons between entrepreneurs and administrators can witness competence differences.

“As with start-ups and entrepreneurs, the difference between the average investment manager and top performers is huge.” (Timmons and Spinelli, p. 313).

Similarly, it is seen that entrepreneurs are innovative minded, have risk bearing skills; do need to take certain amount of calculated risks and challenges in running the business successfully. The more important aspect would be with regard to beneficial usage of resources and good control over financial and material resources over a period of time.

Importance of ethical values

It is seen that ethical values also play an important role in entrepreneurship and sometimes short term gains have to be foregone for long term profits and objectives.

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“What is ethical is not always obvious; rather situations involving ethical issues are often ambiguous.” (Timmons and Spinelli, p. 326).


It could be said that the task of an entrepreneur is not as exciting or ardent as it sounds. In real terms it is possible that sometimes “an entrepreneur will have to act on issues under pressure of time and when struggling for survival.” (Timmons and Spinelli, p. 331).

However, administrators are not under such kind of pressures or stresses, and only needs to perform assigned tasks determined by the management.


  1. WINTERS, Patti. (2008). Manager Vs. Entrepreneur: Major Personal Differences. [online]. Helium.
  2. McSNACKINS, Clacky. (2008). Manager Vs. Entrepreneur: Major Personal Differences. [online]. Helium.
  3. Timmons, J., and Spinelli S. Chapter 8: New Venture Creations: Entrepreneurship for the 21st Century: The New Venture Trend, P. 313. (Provided by customer).
  4. Timmons, J., and Spinelli S. Chapter 9: New Venture Creations: Entrepreneurship for the 21st Century: Personal Ethics and the Entrepreneur: Overview of Ethics, P. 326. (Provided by customer).
  5. Timmons, J., and Spinelli S. Chapter 9: New Venture Creations: Entrepreneurship for the 21st century: Personal Ethics and the Entrepreneur: Action under Pressure, P. 331. (Provided by customer).

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"Entrepreneurial Managers vs. Administrators." StudyCorgi, 20 Oct. 2021,

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