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Entrepreneurs are Way More Creative than Managers: Study
Bangalore: A study was conducted on 25 entrepreneurs and managers while they performed simple tasks that replicated what we call exploitation and exploration type of innovative decisions. The findings are enlightening.
The study groups performed two types of tasks, exploration and exploitation basedwhile their brain activity was constantly being monitored. tasks. Exploitation tasks are ones associated with finding new ways to optimize the performance of current tasks based on refinements of existing practices. Explorative tasks are ones involving disengagement from the current task to search for alternative courses of action and new things to do to achieve overarching goals, rather than doing current things better. In those processes, individuals need to forgo immediate gratification and engage in experimentation with untried approaches.
The study found that when entrepreneurs performed explorative tasks, they used both the left and right sides of the frontal parts of their brains i.e. the entire pre-frontal cortex. In comparison, managers tended to use primarily the left sides of the frontal part of their brains.
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This is a big difference as the right side of the pre-frontal cortex is associated with creative functions involving high-level thinking (like poetry, arts, etc.), whereas the left side is associated with rational decision-making and logical thinking. So, in a way, it means that entrepreneurs seem to be capable of using the entirety of their high-level thinking capacities (“executive functions”), while managers were more narrowly focused on rational and logical reasoning.
This can explain why entrepreneurs can take high risk decisions when compared with managers but this does not imply that entrepreneurs are smarter than managers. This also raises the nature versus nurture debate, does the nature of work change the way a person thinks or is it conditioned by birth? Regardless of the triumph of nature over nurture or vice versa, this study can explain why some entrepreneurs are more successful than others and why some managers go on to become entrepreneurs.
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The terms Entrepreneur and Manager are considered one and the same. But the two terms have different meanings.
The following are some of the differences between a manager and an entrepreneur.
· The main reason for an entrepreneur to start a business enterprise is because he comprehends the venture for his individual satisfaction and has personal stake in it where as a manager provides his services in an enterprise established by someone.
· An entrepreneur and a manager differ in their standing, an entrepreneur is the owner of the organization and he bears all the risk and uncertainties involved in running an organization where as a manager is an employee and does not accept any risk.
· An entrepreneur and a manager differ in their objectives. Entrepreneur’s objective is to innovate and create and he acts as a change agent where as a manager’s objective is to supervise and create routines. He implements the entrepreneur’s plans and ideas.
· An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm where as a manager’s compensation is less dependent on the performance of the organization.
· An entrepreneur is not induced to involve in fraudulent behavior where as a manger does. A manager may cheat by not working hard because his income is not tied up to the performance of the organization.
· Entrepreneur is required to have certain qualifications and qualities like high accomplishment motive, innovative thinking, forethought, risk-bearing ability etc. Conversely it’s mandatory for a manager to be educated in the fields of management theories and practices.
· An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes and he postpones failure.
“An entrepreneur could be a manager but a manager cannot be an entrepreneur”. An entrepreneur is intensely dedicated to develop business through constant innovation. He may employ a manager in order to perform some of his functions such as setting objectives, policies, rules etc. A manager cannot replace an entrepreneur in spite of performing the allotted duties because a manager has to work as per the guidelines laid down by the entrepreneur.
On the downside, typical manager brings professionalism into working of an organization. They bring fresh perspectives, ideas and approach to trouble shooting which can be invaluable.
Lately there has been convergence of the entrepreneur and the manager in certain sectors like software. An employee is being given highly valuable stock options, which make a typical ‘manager’ a part owner(Padma Praveen,Cite HR Real World insights & industry information).
Dr.A.Jagadeesh Nellore(AP),India
Entrepreneurs are leaders and managers are different from leaders. It is just the nature of the job dear.
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