There is considerable confusion with the term entrepreneur in the business world. Many people use the terms entrepreneur and businessman indistinctly; However, they are two figures quite different for the role they have to play.

As a general rule, people usually define entrepreneur as a person who is able to start a business project. However, the United Nations (UN), the Organization for Economic Co-operation and Development (OECD), and the European Union (EU) do not agree with this definition.

To explain what an entrepreneur means and the differences with a businessman, we must introduce the concept of business model. The business model defines how the company will make money. Business models in traditional sectors are simple to understand and carry out. I’m sure everyone can imagine how bakeries make money. At best, they buy raw materials (such as flour and yeast), prepare bread, and sell it to customers. Simple, right?. A person who wants to create a bakery would have a clear business model. A businessman is the person who wants to create a new company with a pre-established business model.

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On the other hand, there are companies where the business model is not clear in its beginnings. How could Facebook earn money? How can Spotify make money? There are various business models that can be adapted to each of them: business models based on advertising, selling digital records, renting songs, sponsorships, membership, etc. When a person wants to create a new company and the uncertainty about the business model is very high, we have an entrepreneur. Therefore, we can define an entrepreneur as a person who seeks, through trial and error, the most appropriate model for the business project that he/she wishes to carry out. After time, mistakes, and a lot of effort, the entrepreneur will become a businessman (if he/she is also lucky).

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