The Difference Between Entrepreneurship and Intrapreneurship

In the fast-paced business world of today, innovation is critical to keeping ahead of the curve. Entrepreneurship and intrapreneurship are the two driving elements behind this invention. While the two notions that is entrepreneurship and intrapreneurship, are frequently employed interchangeably, their theoretical approaches and applications differ significantly. In this article, we will look at the differences between entrepreneurship and intrapreneurship.

Most people have heard of or are aware of the term “Entrepreneurship” or “Entrepreneur”. Did you know that there are 582 million entrepreneurs in the world? This may be because entrepreneurship is now recognised as a potential career.

Intrapreneurship is also a very similar concept. It refers to entrepreneurship but within an organisation or a venture. Entrepreneurship and intrapreneurship are terms with a few similarities and a lot of differences.

Both entrepreneurship and intrapreneurship involve passion and goal-oriented behaviour. But, the risks involved in both , entrepreneurship and intrapreneurship differ. The primary difference between entrepreneurship and intrapreneurship is that the former is an independent process, while the latter depends upon the former and involves the influence of seniors and executives. While an entrepreneur aims to develop new projects, an intrapreneur looks for innovation.

Like entrepreneurship, intrapreneurship is also a great option to make a career. If you are passionate, a problem-solver, and an innovator, then entrepreneurship and intrapreneurship are ideal career options. But first, let us understand the key differences between entrepreneurship and intrapreneurship.

What is Entrepreneurship?

Entrepreneurship is developing an idea or concept and building up a business or enterprise around it. Moreover, it also involves investing the required funds and bearing the associated risks.

The entrepreneur is an individual who launches a business. They are risk-takers, dreamers, and people with an idea who are eager to launch a venture or a business. They do all or most of the following in a business:

• Discover a business opportunity.
• Invest the necessary funds.
• Bear the risks and challenges that come down the road.
• Decide what, how, and when to produce and sell.
• Push the company towards growth and greater profits.

Types of Entrepreneur

Different people are different types of entrepreneurs. The following are the most common types of entrepreneurs:

1. Innovators

They develop a wholly new and innovative idea and build a profitable business. They are passionate and obsessive about their idea.

2. Hustlers

They are entrepreneurs who work harder than others to make their dreams come true. They think of a small idea at the start and make it big as time goes on.

3. Imitators

Imitators imitate the idea but bring an improvement to the original idea. They continue to work towards finding different ways of improvement. Imitators are confident in their approaches.

4. Researchers

They come up with an idea but dig deeper before initiating a business out of it. When they think of an idea, they gather all the available data and analyse all the aspects of it.

5. Buyers

Buyers are entrepreneurs who have money and look for potential businesses to invest in. Somebody else looks after and grows their business.

Also, read Entrepreneurship in India–Complete History, Evolution and Transformation.

What Is Intrapreneurship?

Intrapreneurship involves coming up with a new and innovative idea. The idea is to improve an already existing company or the products/services provided to it. It also involves bearing the associated risk in the process.

Intrapreneurs are passionate and action-oriented individuals. They discover a new business opportunity and implement it for their companies. They do not invest funds or resources of their own. Instead, the company provides them with the same. Also, they only work towards initiating an idea and making it a success but bear the associated risks.

Types of Intrapreneur

There are different types of intrapreneurs types based on their process. The common types of intrapreneurs are:

1. Advocates

The Advocates play a problem-solving role in a customer-facing capacity. They outline the characteristics of the client and suggest the best options.

2. Creators

Creators are much like innovators. They develop the prototype solution and give a company idea life. Creators enjoy change and are quick learners. Also, they learn the best ways to do anything. Creators have broad thinking and like working in surroundings with fewer rules.

3. Change Maker

A change maker is an individual with a focus on attracting new business and investments for the organisation. They frequently exhibit a strong sense of extrovert confidence and networking skills. They could be at any level of employment.

4. Market Navigators

They work to find and penetrate new markets or client niches. Their responsibilities include doing research on the market, evaluating competitors, and developing plans to broaden the company’s reach and effect.

5. Cultural Envoy

These intrapreneurs work to shape and nurture the corporate culture. They focus on programs such as employee engagement, diversity and inclusion, and fostering a healthy and productive work environment.

Difference Between Entrepreneurship and Intrapreneurship

Although both entrepreneurship and intrapreneurship are correlated, they have several differences. Let’s dive deep into the key differences between an entrepreneurship and intrapreneurship .

Basis	Entrepreneurship	Intrapreneurship
Goal-Setting	Entrepreneurs solely use their clarity and vision to identify the gaps in the market. They set their business’s goal after analysing these gaps.	On the other hand, an intrapreneur has no sole right to use their discretion in setting a goal. The senior managers or executives of the company can easily influence them.
Access to Resources	Entrepreneurs have their own stream of resources and personal networks to progress their businesses.	Intrapreneurs get access to resources and insights available to the company they work in. This means that they will have to work with internal processes, stakeholders, and political dynamics.
Mitigated Risks	Although both entrepreneurs and intrapreneurs bear risks almost every day, the risks for both differ. An entrepreneur puts his existing job and savings at stake to start a business from scratch.	Intrapreneur has a risk, any failed attempts in the assigned task may be detrimental to their professional reputation and career path. However, they will still get a salary and a chance to improve on the next project with the organisation.
Safety Nets	For entrepreneurs, a single month of poor sales or a single unintentional wrong choice can bring their business to the verge of shutdown.	Intrapreneurs have safety nets from the companies they work in, and their companies have financial safety in case things do not go as planned.
Chances of Failure	According to statistics, 60% of entrepreneurs fail in their first five years of business. This is because entrepreneurs’ mistakes and wrong choices directly impact their businesses.	The decision and choices of intrapreneurs are not their sole responsibility. Therefore, it is a shared responsibility of the business and intrapreneurs.

Also, read: How is the need for Entrepreneurship is important for Economic Growth?

Importance of Entrepreneurship: 10 Powerful Impacts on India

The Rise in Entrepreneurship: Top 12 Startups in India

Examples of Entrepreneurship and Intrapreneurship

Lets take a look at the examples of successful entrepreneurship and intrapreneurship.

Successful Entrepreneurs

Jeff Bezos

Jeffrey Bezos is an American business entrepreneur best known for founding Amazon, the world’s biggest e-commerce and cloud computing corporation, and serving as its executive chairman and former president and CEO. The firm began as an online bookshop and has subsequently developed into a wide range of e-commerce products and services.

Steve Jobs

Steve Jobs was an American businessman, inventor, and investor who co-founded Apple Inc. He was primarily responsible for rescuing Apple, which was on the edge of bankruptcy.

Elon Musk

He is a businessman and investor best recognized for his leadership positions at SpaceX and Tesla, Inc. He also owns X Corp., which manages the social media site X.

Successful Intrapreneurship Ideas

SONY PlayStation

PlayStation was the idea of Ken Kutaragi. He was working at Sony’s sound labs when he bought a Nintendo game device for his daughter. Ken noticed that his daughter wasn’t pleased with the game’s audio quality. Based on his expertise, he concluded that a digital sound chip would increase the quality of the Nintendo game. Norio Ohga, Sony’s president, saw the potential in his proposal and decided to foster his entrepreneurial drive.

Facebook Like Button

Leah Pearlman, Facebook’s product manager at that point, discovered that popular posts received a lot of comments and it was impossible to find the fascinating ones. It irritated Pearlman and her coworkers. She and a few other Facebook employees—engineering, managers and corporate communications manager sought to create a uniform, frictionless way to express approval on the social network. They named the endeavor “Props.”

Bottomline- Entrepreneurship and Intrapreneurship

Now you must wonder if you should be an entrepreneur or an intrapreneur. After you are aware of the differences between entrepreneurship and intrapreneurship, becoming one of them has its pros and cons, depending on your skills.

Both entrepreneurship and intrapreneurship are critical drivers of innovation and success in today’s business environment. While entrepreneurship focuses on launching new ventures and disrupting industries, intrapreneurship leverages the power of innovation within existing organizations. Individuals and businesses that embrace these complementing attitudes may open up new opportunities, stimulate innovative problem-solving, and remain ahead of the competition. One can be an entrepreneur if they are good at networking, problem-solver, has funds, are risk-taker, and has time to run a business. On the other hand, one can choose to be an intrapreneur if they have the skills that it takes to be an entrepreneur, love to create new products, and have ideas to run an existing company more efficiently.

Together, entrepreneurship and intrapreneurship may pave the way for a brighter future for enterprises, communities, and individuals. So, select what you want to be depending on your skills and situations. All the very best.

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