2 - The Entrepreneur and Intrapreneur

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Difference Between 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, 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 with some other important points of distinction between the two.

Entrepreneur Vs Intrapreneur

Comparison Chart

BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Meaning Entrepreneur refers to a person Intrapreneur refers to an employee of


who set up his own business the organization who is in charge of
with a new idea or concept. undertaking innovations in product,
service, process etc.

Approach Intuitive Restorative

Resources Uses own resources. Use resources provided by the


BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON

company.

Capital Raised by him. Financed by the company.

Enterprise Newly established An existing one

Dependency Independent Dependent

Risk Borne by the entrepreneur Taken by the company.


himself.

Works for Creating a leading position in Change and renew the existing
the market. organizational system and culture

Key Differences Between Entrepreneur and Intrapreneur

The important distinguishing points between entrepreneur and intrapreneur, are given in the
following points:

1. An entrepreneur is defined as a person who establishes a new business with an innovative


idea or concept. An employee of the organisation who is authorised to undertake
innovations in product, service, process, system, etc. is known as Intrapreneur.
2. An entrepreneur is intuitive in nature, whereas an intrapreneur is restorative in nature.
3. An entrepreneur uses his own resources, i.e. man, machine, money, etc. while in the case
of an intrapreneur the resources are readily available, as they are provided to him by the
company.
4. An entrepreneur raises capital himself. Conversely, an intrapreneur does not need to raise
funds himself; rather it is provided by the company.
5. An entrepreneur works in a newly established company. On the other hand, an
intrapreneur is a part of an existing organisation.
6. An entrepreneur is his own boss, so he is independent to take decisions. As opposed to
intrapreneur, who works for the organisation, he cannot take independent decisions.
7. 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.
8. 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.

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.

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