Intrapreneur and Entrepreneur: An entrepreneur takes the substantial risk of being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. The primary difference between an Intrapreneur and Entrepreneur [In Hindi]; Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal, and insight. On the contrary, an intrapreneur is an individual employed by an organization for remuneration. Which is based on the financial success of the unit he is responsible for.
Learn, Understanding, What is the Difference Between an Intrapreneur and Entrepreneur?
As the intrapreneur continues to express his ideas vigorously. It will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business.
Entrepreneurship involves innovation, the ability to take risk and creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to take the calculated risk and to accept failure as a learning point. An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the organization.
Intrapreneurship is a novel way of making organizations more profitable where imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves and improve performance.
In a recent study.
Researchers compared the elements related to the entrepreneurial and intrapreneurial activity. The study found that among the 32,000 subjects who participate in it, five percent engaged in the initial stages of a business start-up, either on their own or within an organization.
The study also found that human capital such as education and experience is connecting more with entrepreneurship than with intrapreneurship. Another observation was that intrapreneurial startups were inclined to concentrate more on business-to-business products while entrepreneurial startups were inclined towards consumer sales.
Another important factor that led to the choice between entrepreneurship and intrapreneurship was age. The study found that people who launched their own companies were in their 30s and 40s. People from older and younger age groups were risk-averse or felt they have no opportunities, which makes them the ideal candidates if an organization is on the lookout for employees with new ideas that can pursue.
Entrepreneurship appeals to people who possess natural traits that find startups arousing their interest. Intrapreneurs appear to be those who generally would not like to get entangled in startups but are tempted to do so for some reason. Managers would do well to take employees who do not appear entrepreneurial but can turn out to be good intrapreneurial choices.
The difference in Definition of Entrepreneur and Intrapreneur:
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, intending to earn 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 pay remuneration according to the success of the business unit, for which he/she is hiring 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 with some other important points of distinction between the two.
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,
- Recognizes and utilizes the 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 organization. An intrapreneur is an employee of a large organization, who has the authority of initiating creativity and innovation in the company’s products, services, and projects, redesigning the processes, workflows, and systems to transform them into a successful venture of the enterprise.
The intrapreneurs believe in change and do not fear failure, they discover new ideas, look for such opportunities that can benefit the whole organization takes risks, promotes innovation to improve the performance and profitability, resources are providing by the organization. The job of an intrapreneur is extremely challenging; hence they are appreciating and rewards by the organization accordingly.
From the last few years, it has become a trend that large corporations appoint intrapreneurs within the organization, to bring operational excellence and gain competitive advantage.
Main key differences between Entrepreneur and Intrapreneur:
An entrepreneur takes a substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration. Which is based on the financial success of the unit he is responsible for.
Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal, and insight. As the intrapreneur continues to express his ideas vigorously. It will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business.
The important distinguishing points between entrepreneur and intrapreneur, are given in the following points:
- An entrepreneur defines as a person who establishes a new business with an innovative idea or concept. An employee of the organization who is authorizing to undertake innovations in product, service, process, system, etc. knows as Intrapreneur.
- The entrepreneur is intuitive, whereas an intrapreneur is restorative.
- An entrepreneur uses his resources, i.e. man, machine, money, etc. while in the case of an intrapreneur the resources are readily available, as they are providing to him by the company.
- An entrepreneur raises capital himself. Conversely, an intrapreneur does not need to raise funds himself; rather it is provided by the company.
- An entrepreneur works in a newly established company. On the other hand, an intrapreneur is a part of an existing organization.
- An entrepreneur is his boss, so he is independent to take decisions. As opposed to intrapreneur, who works for the organization, he cannot take independent decisions.
- This is one of the salient features of an entrepreneur; he is capable of bearing risks and uncertainties of the business. Unlike intrapreneur, in which the company bears all the risks.
- The entrepreneur works hard to enter the market successfully and create a place subsequently. In contrast to Intrapreneur, who works for organization-wide change to bring innovation, creativity, and productivity.