Entrepreneurship

Entrepreneur vs Professional
Managers

Course Instructor: Prof. Dr. Engr. Suleman Tahir / Engr. Muhammad Kashif Ashraf

Department of Chemical
Engineering
Study Material for Lecture

Lecture Slides
 Lecture Objectives

• To know differences between entrepreneur and

professional manager
 Entrepreneur vs Professional Managers

• Both are necessary

• Entrepreneur is necessary for competitive positioning

• The continuous progress of business and managing the enterprise

needs professional management

• Goals are same however they differ in approach and qualities

 Professional Manager

A professional manager is an individual who

• may belong to the profession of law, accountancy, medicine, engineering or architecture,
or

• is a member of a recognized professional body or institutional body exercising

supervisory jurisdiction over its members, or

• is a holder of a degree or diploma in management from any recognized university and

possesses not less than five years experience in an executive capacity in a company,
corporation or in the government”; or possesses minimum of ten years’ experience in the
same capacity and in the same institutions mentioned in the third category.
 Professional Manager

A professional manager should have:

• have an insight of his job requirements;

• carry out continuous updating of his learning to fulfill his job requirements;

• have a performance-oriented relationship with his subordinates, super-ordinates and colleagues

based on mutual respect to facilitate team work for collective contribution to the organization;

• have a relationship based on long-term mutual benefit approach with customers, suppliers and
other members of the public, and

• have communication with colleagues to improve the standard contribution and the prestige
managerial profession.
 Characteristics of Professional
Management

Body of • Knowledge is the necessary element

Knowledge

Management • such as accounting, business law, psychology, statistics and

Tools data processing

Management Specialization • Professionals with specialty are now a days considered such
Characteristics as technical management, business management etc.

Separate • export management, personnel management, production

Discipline management, marketing management, Financial management

• Business has social responsibilities towards customers,

Code of employees and society on whole
Conduct • Customer oriented marketing
• Trade union, legislation follow ups
 Managers and Entrepreneurs

• Both managers and entrepreneurs are answerable for producing

results using people and resources

• The results of each might be different.

• Both have to take decisions but differ due to different tasks.

• Both have to follow sound principles of management like planning,

staffing, delegation and control
 Similarities and dissimilarities b/w
Managers and Entrepreneurs
Similarities Dissimilarities

To produce results Setting of objectives

To produce results through people Policy formulation

To take decisions Strategic Planning

To cooperate under constraints Formal communication

To follow sound principles of
Organizing
management

• A successful organization needs both entrepreneurship and

management
 Entrepreneur vs. Manager

• The entrepreneur is a person who is motivated satisfy a high need

for achievement in innovative and creative activities.

• He has creative behavior and innovative spirit.

• It is not enough for the entrepreneur to build up the process, but

equally important task for him is to manage the business.

• He cannot live within the framework of occupational behavior set by

others