The difference between an entrepreneur and entrepreneurship CSEC Principles of Accounts
(POA)
Entrepreneur
An entrepreneur is an individual who identifies a business opportunity, takes the risk of starting
and managing a business, and organizes resources to make a profit. They are the person behind
the creation and operation of the business.
Key Features of an Entrepreneur:
1. Risk-taker: They invest time, money, and effort despite uncertainties.
2. Innovator: They introduce new ideas, products, or services.
3. Manager: They organize resources (e.g., labor, capital) to achieve business goals.
Example of an Entrepreneur:
Maria decides to open a bakery. She invests $10,000 of her savings, rents a shop, buys baking
equipment, and hires two employees to produce and sell bread. Maria is the entrepreneur
because she initiated and manages the bakery business.
Entrepreneurship
Entrepreneurship refers to the process of identifying a business opportunity, taking the risk to
start and operate the business, and managing resources to generate profit and growth. It is the act
or practice of being an entrepreneur.
Key Features of Entrepreneurship:
1. Creative Process: Turning ideas into a viable business.
2. Opportunity Identification: Spotting a gap in the market to provide goods or services.
3. Resource Management: Using available resources efficiently to achieve goals.
Example of Entrepreneurship:
Maria notices a demand for gluten-free baked goods in her community. She researches recipes,
sources ingredients, markets her products, and grows her bakery into a profitable business. The
process of starting, running, and expanding the bakery is entrepreneurship.
Comparison Table
Aspect Entrepreneur Entrepreneurship
Definition The individual who starts a business. The process of starting and managing a business.
Focus The person and their traits/skills. The actions and activities of running a business.
Example Maria, who owns the bakery. The process of opening and growing the bakery.
business formation, types of businesses, and the role of an entrepreneur in accounting and
financial management.
CSEC Principles of Accounts (POA) lies in how employees are compensated for their work and
the nature of their jobs.
Wages
Wages are payments made to workers based on the number of hours worked or the amount of work
completed. They are typically paid daily, weekly, or based on production and are more common
in jobs that involve manual labor or hourly work.
Key Features of Wages:
1. Hourly/Daily Basis: Workers are paid based on time worked or tasks completed.
2. Variable Earnings: The amount may vary depending on hours worked, overtime, or
production output.
3. Short-Term Payment Cycle: Wages are often paid weekly or bi-weekly.
Example of Wages:
A construction worker earns $15 per hour. If they work 40 hours in a week, they will earn
$600 in wages for that week.
A factory worker earns $5 for each unit produced. If they produce 100 units, they will earn
$500 in wages.
Salaries
Salaries are fixed payments made to employees, typically on a monthly or bi-weekly basis,
regardless of the hours worked. Salaries are more common in managerial, administrative, or
professional roles.
Key Features of Salaries:
1. Fixed Payment: Employees receive the same amount regardless of hours worked.
2. Long-Term Stability: Salaries are paid at regular intervals, often monthly.
3. Professional Roles: Common for office jobs, supervisors, and skilled professionals.
Example of Salaries:
An accountant earns a fixed salary of $5,000 per month, whether they work 35 or 40 hours
a week.
A teacher earns an annual salary of $60,000, paid in monthly installments of $5,000.
Comparison Table
Aspect Wages Salaries
Based on hours worked or tasks Fixed amount regardless of hours
Basis of Payment
completed. worked.
Payment
Weekly, daily, or bi-weekly. Monthly or bi-weekly.
Frequency
Managerial, administrative, or
Nature of Jobs Manual labor, hourly jobs, production.
professional.
Example A factory worker paid $15/hour. A teacher earning $5,000/month.
