We are all familiar with the term "entrepreneur." In this article, readers will learn the difference between an entrepreneur and intrapreneur. What roles and responsibilities do they play in an organisation? Also, the basis to distinguish between entrepreneur and intrapreneur will also be discussed.
Did You Know?
If someone can't decide whether they want to be an entrepreneur or an intrapreneur, each has its own advantages. Entrepreneurship may be more tempting if users are strong at communicating, know how to deal with problems, and have the time to operate a firm. This position allows anyone to create whatever firm or product they choose.
Entrepreneur vs Intrapreneur
An intrapreneur is a corporate employee who generates an innovative concept or project. An entrepreneur is a person who starts a new firm, incurring the majority of the risks and reaping the majority of the gains.
We can differentiate between Entrepreneur and Intrapreneur, but both positions require their skillset and mindset.
If we talk about entrepreneurs, they are the main body of any company or organisation with complete control and power of planning, execution, decision making, setting work environment, etc. Entrepreneurs start working from scratch and develop new products and ideas, doing the majority of the work all by themselves. Gather the team, manage all the expenses, arrange funds and establish the company.
On the other hand, Intrapreneur works under the organisation and is responsible for providing new ideas to the company for more incentives and benefits.
An Intrapreneur is an in-house entrepreneur who works within an organisation. In-house entrepreneurs are workers in large corporations with the power to inspire the creativity and innovation of an organisation's projects, services, and products. They aim to reinvent workflows, processes, and systems to turn them into profitable ventures for the company.
Characteristics of Entrepreneur
- An essential feature of entrepreneurship is the willingness to take risks. This shows entrepreneurs the courage to find opportunities and try new ideas.
- Understanding a product or service is essential to making sure an idea succeeds. Therefore, entrepreneurship cannot be successful without in-depth development or service knowledge.
- Additionally, successful entrepreneurial endeavours are characterised by flexibility and open-mindedness. Making sound economic judgments requires being willing to change course and paying attention to the market.
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Characteristics of Intrapreneurs
- Intrapreneurs are always careful towards risk-taking and produce new ideas to grow the company. They have to study the market and understand the target audience.
- An intrapreneur might anticipate receiving the latitude and independence required for such a project.
- The organisation's future planning depends on the intrapreneur's ability to recognise and comprehend trends.
- An executive at any level, up to and including vice president, can be an intrapreneur. They are free to work on the projects without any interference from their employers. They use corporate resources to experiment, investigate, invent, and develop new items.
Example of Entrepreneur and Intrapreneur
With examples, it becomes easy to distinguish between an entrepreneur and an intrapreneur.
Google on its own is an independent parent company, and its founders are known as the entrepreneurs who made this company from scratch with a new innovative idea in the market.
Several small startups or ideas have grown inside Google like Gmail, Google News, Google Maps, Google Glasses, Google Adsense, Google Adwords, driverless cars, etc. They have launched these with the help of intrapreneurship, where the small ventures are funded and supported by the parent company Google.
Here are a few instances of some of the most significant companies that emerged from intrapreneurship within a large corporation:
- Apple products include a Mac, iPod, iTunes, iPhone, and iCloud.
- Several divisions that Virgin launched, including airlines, hotels, music albums and events, megastores, books, wines, games, etc.
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Myths about Entrepreneurs
1. Entrepreneurs Assume Uncalculated and Unexpected Risks.
This myth is somewhat correct; entrepreneurs suffer uncalculated and unpredictable threats, but they maintain resources and prepare as much as possible to cope with the unexpected.
2. Entrepreneurs Establish a Firm with a Game-Changing Invention.
This is somewhat correct; not all entrepreneurial initiatives are indeed game-changers. Most are recognising and profiting from a mix-and-match strategy. Google did not design the internet, McDonald's did not develop the cheeseburger, and Starbucks did not create coffee. The discovery and financing of the idea, as well as the high growth rate, are what distinguishes the endeavor as entrepreneurial.
3. Entrepreneurs Begin with a Suitable Amount of Cash.
Capital is the most crucial necessity for any entrepreneurial journey. Unless they have established themselves or have a viable prototype, many entrepreneurs fail to get adequate funding from outside sources. As a result, most entrepreneurs begin with insufficient cash and hope to gain more down the way.
Myths About Intrapreneurs
1. Intrapreneurs are Power Hungry
It is often said that intrapreneurs are power-hungry and ambitious when it comes to building an empire. They simply want to grow their venture as big and fast as they can. The reality is that they are calculated and conservative, and they care more about doing things properly than just doing big things. Of course, they are more concerned with profits and growth than with building an empire overnight.
2. Intrapreneurs Require Constant Innovation
To begin, innovation must be acknowledged as a constant function of a productive organisation, like accounting, manufacturing, sales, & finance. It isn't easy to envision a massive corporation without a marketing division or department. However, marketing as a corporate activity, profession, or sector didn't even exist fifty years ago. The same would be true of today's innovations. Companies require specialised innovation specialists to execute all the activities of discovery, growth, incubation, speed and scaling if companies wish to be capable of continually innovating.
Key Difference Between Entrepreneur and Intrapreneur
An intrapreneur is responsible for only giving ideas; they cannot execute ideas on their own. At the same time, the Entrepreneur will look into whether the concept is suitable for the business and then give the execution order. Since an entrepreneur is his employer, they are free to make their own decisions. At the same time, an entrepreneur can make independent judgments, unlike an intrapreneur who works for the organisation.
Based on Finance
Intrapreneurs don’t have to worry about the funds for the plan execution. They rely on the company/organisation for money. On the other hand, entrepreneurs must work and arrange funds for the company for all the performances.
Intrapreneurs' primary focus is to get promotions in the company with high salaries, incentives, and respect. In contrast, entrepreneurs hunger to grow businesses and achieve new heights in the market.
The entrepreneur is responsible for taking the business's risks. He assumes all commercial risk. They take a financial hit. While in the case of "intrapreneurs," they share some of the business's risks. They do not assume all company risks; instead, he involves the money of others.
Intrapreneurs' mindset is simple: they want to be free after working hours. They don’t have to take the baggage of the company; they work only for salary and incentives.
An intrapreneur is bound to the company's deadline and reports each step to seniors. At the same time, Entrepreneurs set their own timelines or deadlines.
As the company's owner and founder, the entrepreneurs are independent. They are among the more senior members of the organisation and are exempt from reporting to anybody.
However, entrepreneurs or their superiors have restrictions on intrapreneurs. They are unable to make crucial decisions on their own, and they must demonstrate their ability under a set of constraints.
Employees who are obliged to run on a unique idea or assignment are called intrapreneurs. They are given the time and range to increase the appointment withinside the way of an entrepreneur. Intrapreneurs have the assets and skills of the business enterprise at their disposal. For decades, people have become more focused on inventions, which has increased the number of entrepreneurs each year.
The world is changing rapidly due to technology's rapid advancement. In addition, competition between companies is intensifying. If a company wants to compete with other companies, it must add something new to its offering. Here, entrepreneurship and in-house entrepreneurship are essential to entering new markets and businesses.
In summary, we would argue that while entrepreneurs and intrapreneurs have similar perspectives, their circumstances cause them to vary from one another. Because of this, some intrapreneurs go on to launch their own business. Additionally, they don't have to suffer as much due to their extensive market knowledge.
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