The Differences Between CEOs and Entrepreneurs: How To Work Together

Contributed to EO by Barry Raber

While CEOs and entrepreneurs might seem like similar job titles, they each play different roles in shaping a business’s journey. CEOs focus on steady growth and strategic decisions, keeping the company moving forward. Entrepreneurs are visionaries, often igniting the spark that gets things started. 

Both bring unique strengths to the table and when they work together, they are a powerful combination that drives businesses toward success. Explore what sets them apart and how collaboration between the two can lead to big wins for any organization.

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What Is a CEO?

A Chief Executive Officer (CEO) is an organization’s highest-ranking individual, overseeing the overall operations, making high-level decisions, and driving the company’s vision. Typically, a CEO is hired or appointed by a board of directors, especially in larger, more established companies.

Some of the key responsibilities of a CEO include:

• Implementing long-term strategies developed by the board

• Overseeing day-to-day operations

• Managing the leadership team, which may include other C-suite executives such as the Chief Financial Officer (CFO) or Chief Operating Officer (COO)

• Making critical business decisions that impact the entire company

• Ensuring the organization’s goals align with its mission and vision

The CEO manages the larger organizational structure and ensures all departments work together efficiently to achieve the company’s long-term vision.

What Is an Entrepreneur?

The word “entrepreneur” refers to someone who starts a business, often from scratch, with a new or innovative idea. Entrepreneurs are risk-takers who typically launch companies with a vision to solve a problem or meet a need in the marketplace. While a CEO is usually appointed by a company’s board, an entrepreneur is often the business’s sole proprietor, business owner, or founder.

Some of an entrepreneur’s key responsibilities include:

• Generating the initial business strategy and vision for the company

• Developing the product or service that the business will offer

• Securing funding and managing financial risks

• Building a company from the ground up, often focusing on growth and innovation

• Managing limited resources and wearing multiple hats, especially in the early stages of the business

Entrepreneurs are typically more involved in the company’s creative and visionary aspects, while CEOs often focus on execution and scaling.

Key Differences Between CEOs and Entrepreneurs

Although there is overlap in their roles, CEOs and entrepreneurs differ in several key areas:

Risk Tolerance

Entrepreneurs often embrace high levels of risk, especially in the early stages of their ventures. They are willing to take risks to test new ideas and bring innovations to the market. Steve Jobs, for example, took significant risks to develop Apple’s early products, like betting the company on the original Macintosh in 1984, despite the high cost and unproven market. These calculated risks revolutionized the tech industry. 

CEOs prioritize managing risks and maintaining stability, especially in established businesses with significant resources and large teams. Their role is to keep the company on track for growth.

Focus on Vision vs. Execution

Entrepreneurs excel at setting the vision and identifying competitive advantages in their industries. They are forward-thinkers, always looking for ways to innovate. CEOs are responsible for executing that vision. Their role involves managing the day-to-day operations and ensuring that the company’s vision is implemented effectively across all levels of the organization.

Organizational Structure

Entrepreneurs, particularly in the early stages of a business, may have a loose or evolving organizational structure, often operating as a limited liability company (LLC) or sole proprietorship. 

Entrepreneurs might hire a CEO to create a more formal organizational structure as the company grows. The CEO is the highest-ranking officer in the corporate hierarchy and is tasked with leading the company through a more stable, structured approach. Entrepreneurs also sit at the top of the corporate ladder as the company’s founder; however, they do not have an official title. 

How CEOs and Entrepreneurs Can Work Together

CEOs and entrepreneurs can collaborate to drive business success despite their differences. Here are several ways they can work together:

Align Vision and Strategy

A fundamental way for a CEO and entrepreneur to collaborate is by aligning the company’s big-picture vision with actionable strategies. The entrepreneur sets the direction and drives innovation, while the CEO crafts a practical plan to bring that vision to life. 

Cameron Herold’s books, like Double Double and Vivid Vision, emphasize the importance of this alignment, showing how clear communication and complementary roles can help businesses chase bold ideas while keeping operations on track.

Leverage Strengths and Weaknesses

Entrepreneurs are big-picture thinkers, always chasing new ideas and pushing boundaries. However, when managing large teams or keeping daily operations running smoothly, they might not always have the focus for the managerial details. 

CEOs excel at leading teams, fine-tuning processes, and ensuring everything stays on track. When entrepreneurs and CEOs team up, they can create a perfect balance—one focuses on driving innovation, while the other ensures that vision gets executed efficiently. This dynamic combines creativity with solid leadership, helping businesses grow without losing their edge.

Create a Clear Division of Responsibilities

Despite the need to collaboratively build on each other’s strengths and weaknesses, you must also establish a clear division of roles. Entrepreneurs can continue to drive new ideas and growth opportunities, while CEOs manage high-level decisions that impact human resources, financial management, and other operational duties. This division ensures the entrepreneur and CEO remain productive in their areas of expertise without overstepping boundaries.

Build a Strong Board of Directors

In many profit and non-profit organizations, a strong board of directors can be a crucial link between the CEO and the entrepreneur. The board can mediate key decisions and provide strategic feedback while also helping keep everyone aligned with the company’s long-term goals. 

Implementing a one-page strategic plan—a concept popularized by business coach Verne Harnish—can be a practical tool for achieving this alignment. A board can use the plan to keep the entrepreneur’s vision and the CEO’s execution strategies clearly laid out on a single page. This simple but powerful framework ensures that both roles stay focused on shared priorities while making it easier to adapt to market changes with the board’s insights and guidance.

Encourage Open Communication

Solid communication is vital to keeping the CEO and entrepreneur on the same page. Holding regular strategy sessions and keeping open lines of dialogue can go a long way toward preventing misunderstandings and keeping everyone updated on progress. 

A biweekly huddle, for instance, can be a great way to quickly review critical updates, discuss challenges, and ensure both leaders are aligned. When there’s a culture of transparency, it’s easier for them to stay focused on shared goals and the company’s mission.

Real-World Examples of Successful Collaboration

Many successful businesses thrive on strong collaborations between visionary entrepreneurs and skilled CEOs. For example, consider the partnership between Bill Gates and Satya Nadella at Microsoft. The entrepreneurial co-founder Gates was known for pushing technological boundaries and shaping the company’s initial vision. 

Nadella, who took over as CEO, played a crucial role in transforming Microsoft into a cloud-focused company, improving efficiency, and expanding into new markets like cloud computing and AI.

Another great example is Warren Buffett and his longtime business partner, Charlie Munger, at Berkshire Hathaway. While Buffett is the face of the company and is known for his long-term investment vision, Munger’s strategic insights and focus on operational discipline have been essential to Berkshire’s sustained growth. Their combined leadership has allowed Berkshire Hathaway to become a powerhouse in multiple industries.

Create a Dynamic Partnership for Long-Term Success

Recognizing the differences between CEOs and entrepreneurs is essential for building a successful business. Entrepreneurs bring vision, creativity, and a focus on innovation, while CEOs offer the leadership needed to scale those ideas and maintain organizational structure.

By combining these strengths and aligning on company goals, CEOs and entrepreneurs can form a partnership that drives sustainable, long-term growth. This synergy between strategic vision and operational leadership lays a strong foundation for success. 

If you’re an entrepreneur looking to expand your network and sharpen your leadership skills, consider joining the Entrepreneurs Organization to connect with like-minded leaders and access valuable resources to help you thrive.