Subject Entrepreneurship
Topic Entreprenuers vs Intrapreneurs
SPECIFIC OBJECTIVES
Students should be able to
1. distinguish between entrepreneurship and intrapreneurship;
2. differentiate between entrepreneurship and small business management
Introduction
As both entrepreneur and intrapreneur share similar qualities like
conviction, creativity, zeal and insight, the two are used interchangeably.
However, the two are different, as an entrepreneur is a person who takes a
considerable amount of risk to own and operate the business, with an aim of
earning returns and rewards, from that business. He is the most important
person who envisions new opportunities, products, techniques and business
lines and coordinates all the activities to make them real.
On the contrary, an intrapreneur is an employee of the organization who is
paid remuneration according to the success of the business unit, for which
he/she is hired or responsible.
The primary difference between an entrepreneur and intrapreneur is that the
former refers to a person who starts his own business with a new idea or
concept, the latter represents an employee who promotes innovation within
the limits of the organization. In this article excerpt, we are providing you wit
some other important points of distinction between the two.
Comparison Chart
BASIS FOR Entreprenuer Intrapreneur
COMPARISON
Meaning Entrepreneur Intrapreneur refers to
refers to a person who an employee of the
set up his own business organization who is in
with a new idea or charge of undertaking
concept. innovations in product,
service, process etc.
Approach Intuitive Restorative
Resources Uses own Use resources provided
resources. by the company.
Capital Raised by him Fiananced by the
company
Enterprise Newly established An existing one
Dependency Independent Dependent
Risk Borne by the Taken by the company
entrepreneur himself.
Works for Creating a Change and renew the
leading position in the existing organizational
market. system and culture.
Definition of Entrepreneur
An entrepreneur is an individual who conceives the idea of starting a new
venture, take all types of risks, not only to put the product or service into
reality but also to make it an extremely demanding one. He is someone who:
❖ Initiates and innovates a new concept,
❖ Recognises and utilises opportunity,
❖ Arranges and coordinates resources such as man, material, machine and
capital,
❖ Take suitable actions,
❖ Faces risks and uncertainties,
❖ Establishes a startup company,
❖ Adds value to the product or service,
❖ Takes decisions to make the product or service a profitable one,
❖ Is responsible for the profits or losses of the company.
❖ Entrepreneurs are always the market leader regardless of the number of
competitors because they bring a relatively new concept in the market
and introduce change.
Definition of Intrapreneur
An intrapreneur is nothing but an entrepreneur within the boundaries of the
organisation. An intrapreneur is an employee of a large organisation, who has
the authority of initiating creativity and innovation in the company’s
products, services and projects, redesigning the processes, workflows and
system with the objective of transforming them into a successful venture of
the enterprise.
The intrapreneurs believe in change and do not fear failure, they discover
new ideas, looks for such opportunities that can benefit the whole
organisation takes risks, promotes innovation to improve the performance
and profitability, resources are provided by the organisation. The job of an
intrapreneur is extremely challenging; hence they are appreciated and
rewarded by the organisation accordingly.
Conclusion
Since, last few decades, it has been noticed that people give more value to
innovations, which lead to the rise in the number of startup companies year
on year. This is because the world is changing rapidly with the advancement
in technology. It has also resulted in the competition among companies. Now,
if the enterprise wants to stand in competition with other enterprises, it should
bring something new in their products. Entrepreneur and Intrapreneur play a
major role here, to enter into new business and even markets.
