An entrepreneur is a person who is motivated to satisfy a high need for achievement in innovative and creative activities. He is a great motivator to start his new business and manage it successively. He is the investor and takes risk in the enterprise. He perceives and exploits opportunity and works for his satisfaction to get positive results, whereas a manager (Professional Manager) takes care of the general functions of running an organisation such as strategic planning, operation planning, organising the resources, staffing, coordination, motivation and controlling work of the organisation.

Normally a professional manager acquires such knowledge through formal education and training. He has to work within the policy framework set by the entrepreneurs (owners) of the organisation.