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.
BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON
Meaning Entrepreneur refers to a Intrapreneur refers to an
person who set up his employee of the organization
own business with a new who is in charge of
idea or concept. undertaking innovations in
product, service, process
etc.
Approach Intuitive Restorative
Resources Uses own resources. Use resources provided by
the company.
Capital Raised by him. Financed by the company.
Enterprise Newly established An existing one
Dependency Independent Dependent
BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON
Risk Borne by the Taken by the company.
entrepreneur himself.
Works for Creating a leading Change and renew the
position in the market. existing organizational
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.
From last few years, it has become a trend that large corporations appoint
intrapreneur within the organisation, to bring operational excellence and gain
competitive advantage.
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, 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.
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.
From last few years, it has become a trend that large corporations appoint
intrapreneur within the organisation, to bring operational excellence and gain
competitive advantage.
