In this article, you will get to know all details about “Explain the Difference Between Entrepreneur and Intrapreneur“.
A business and economy cannot function without entrepreneurs and intrapreneurs. Businesses can be shaped by these influential people who can change trends, and directions, and give them a new shape.
It is important to explain the differences between entrepreneur and intrapreneur in this article since sometimes intrapreneur and entrepreneur are used interchangeably.
Explain the Difference Between Entrepreneur and Intrapreneur
A new brand of entrepreneur, the intrapreneur, shares some similar traits but differs from the traditional entrepreneur.
A major difference between intrapreneurs and entrepreneurs is that intrapreneurs work as employees. It is entrepreneurs who discover new grounds for business and lead the market. Companies and organizations were sustained by intrapreneurs.
Before I get into their differences, I’d like to make a proper start by defining entrepreneur vs intrapreneur to avoid any future confusion.
What is the definition of an Entrepreneur?
The term entrepreneur refers to someone who designs and establishes a new business from an idea that has never been tried before. Founders of new businesses are entrepreneurs who play an intuitive role.
A new product or service is created by entrepreneurs. Research-based innovative activities and new business concepts are part of their activities.
What is the definition of an Intrapreneur?
Intrapreneurs are employees of an organization who work as entrepreneurs within the organization’s rules and boundaries. A company or organization’s intrapreneur is a person responsible for restoring the organization’s health.
Like an entrepreneur, an intrapreneur leads a team and is responsible for a product or division within the company.
Major Differences between entrepreneur and intrapreneur:
We will now dissect the topic and answer the question: What is the Difference Between an Entrepreneur and an Intrapreneur?
Organizational Status:
Entrepreneur Organizations, businesses, and enterprises are owned by owners. An entrepreneur works to ensure the success and expansion of his business.
An intrapreneur is an employee of an organization who also operates as an entrepreneur within the boundaries of the organization. Intrapreneurs are granted some autonomy by their organizations.
Ambition:
The ambition of an entrepreneur is to achieve financial success, and autonomy to satisfy his thirst for business innovation and make a positive impact on society. An entrepreneur wants to be an influencer in a nutshell.
On the other hand, an intrapreneur aims to enhance the earning capacity and competitive strength of the organization. An intrapreneur is primarily concerned with maximizing the profits and market value of their organization or company.
Main Objective:
Creating something new with economic and social benefits is the primary objective of an entrepreneur. Through their innovative approaches in business, they are able to meet the demands and needs of society.
The main objective of an intrapreneur is to increase the efficiency and productivity of the organization where he/she works. The role of the intrapreneur is also important in improving the organization’s business capacity.
Risk Taker:
When pursuing an idea, entrepreneurs face many risks, including legal laws, loss, failure, and damages. Because he takes risks, he is responsible for any catastrophe (damage) that occurs.
In contrast, an intrapreneur faces lower risk than an entrepreneur. All risks for an intrapreneur are borne by the organization and company. Financial losses and failures are the responsibility of the company or organization.
Resources Used:
The definition of an entrepreneur is a person who manages his own resources. In order to start and establish his business, he uses his goods and tools. The first stage of an entrepreneur’s career is usually a small setup, so his or her resources are limited.
As opposed to this, an intrapreneur has a distinct advantage. Due to the fact that all the resources are provided by the performing organization or company, he does not have to worry about business operations.
Providing him with the tools and resources he needs to perform his work is the organization’s responsibility.
Enterprise Building:
An entrepreneur establishes a new business. By combining his abilities and innovation, he expands a small business into a large company.
An intrapreneur, however, is someone who works for an already established company or organization.
Profit:
A successful entrepreneur reaps all the rewards and benefits of his business. Due to his hardships in taking his business from 0 to a higher level, the entrepreneur receives all the profits directly.
An intrapreneur, on the other hand, usually receives his/her usual salary with occasional bonuses.
Fundraising:
The entrepreneur is responsible for fundraising and collecting investments for his business venture. An entrepreneur is responsible for all of these activities.
Contrary to an entrepreneur, an intrapreneur does not need to raise capital. The organization handles all of the fundraising and investment activities on behalf of the intrapreneur.
Decision Making:
Entrepreneurs make their own business decisions. It is not necessary for him to get approval from other people involved in his business. Business decisions are made by him, and he is the boss.
It is possible for him to ask for suggestions from the people involved in the company, but it is up to him to make all the decisions on his own.
An intrapreneur, however, cannot make decisions directly about a business deal. Before taking any decisions, he must inform the organization’s higher authorities. This means that he cannot make decisions, but can only provide suggestions to the company.
Skill:
As an entrepreneur, you are usually multi-functional and have multiple skills, which means you are knowledgeable in your specific field as well as business management and operations.
An intrapreneur, on the other hand, is solely responsible for his skills and competence in his particular field.
Neither business management nor business operations are his responsibilities. Intrapreneurs are only accountable for the position they are appointed to.
Conclusion:
We discussed some of the key differences between entrepreneurs and intrapreneurs. The importance of both is significant in the business world.
The latest surveys estimate that there are 583 million entrepreneurs worldwide. By introducing new approaches for improving and expanding employment opportunities, they contribute to the development of an economy and the development of the world.
Click here to read more about entrepreneurship’s importance and benefits in economic development.
The role of intrapreneurs is crucial to the sustainability of companies and organizations. A company’s life span is significantly reduced without intrapreneurship. To grow in the changing world, companies and industries must embrace intrapreneurship.
My upcoming articles will cover topics such as entrepreneurship and intrapreneurship.
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