Relationship between Entrepreneurship and Management

Entrepreneurship is essentially about business start-ups and renewals. It appears when a new business is started, recedes for a while as the venture stabilises into an ongoing business, and reappears whenever there is a need to introduce changes in product, market, technology or structure. In developed countries the distinction between the entrepreneurial focus on start-ups and the managerial focus on routine is so sharp that once a project matures the entrepreneur is expected to move out and professional managers to move in. In developing countries such as India, the owner-manager model is more common — the entrepreneur stays attached even to the day-to-day operations, and a lack of managerial skill is often blamed for business failure.

Whether entrepreneurs make way for managers or take on the managerial role themselves, it is still possible to distinguish between entrepreneurship and management, as the table below shows.