There are those who naturally emerge from a group environment as leaders though they have not officially been designated. Leaders on the other hand have power with the people. Managers too often rely on their legitimate power or authority granted them by virtue of their position in the organization. Leaders rely on power based on their charisma. In business, most managers set objectives and focus on achieving their goals.
Leaders lead their followers to the fulfillment of their potential.
Managers manage and accomplish work through others. Leaders, however, lead and motivate people to higher levels, often giving people purpose to what they do. Leaders inspire as well. Managers tend to be mechanical. Managers tend to focus on goals, but leaders are always interested in trying to understand what motivates people to do things.