These two terms ‘entrepreneur’ and Intrapreneur’ sounds similar, however, are different from each other. Entrepreneurs are those who create, develop, nurture their own venture by their unique and innovative business ideas, on the other hand, Intrapreneur is a proactive, efficient employee of an existing organisation who works on salary.
An Intrapreneur is slightly different from other typical employees in terms of work efficiency, vision and productivity.
In this article, we will discuss other prominent difference between entrepreneur and Intrapreneur. But before we dig into their differences, let us understand what exactly an entrepreneur and Intrapreneur are.
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Entrepreneur And Intrapreneur:
The Intrapreneur, on the other hand, are the persons who just think like an entrepreneur but their role in an organisation is something different. They are typically the employee of an established or growing company and entitled to a monthly salary, incentives, partial shares in the company (through ESOP) or all.
The entrepreneurs accumulate resources like land, labour, machinery, tools and funds to set up and grow an enterprise. They are an enthusiastic, dynamic, creative and rational person who is capable of turning an idea or opportunities into business. They never afraid of failure and uncertainty and always ready to bear risks whether it is financial, social, personal or others.
They always try hard to formulate new strategies, new product design and development or enhancement, new business opportunities so that they can contribute more and more to the organisation. They are hard-working and always seek ways for the betterment of the company.
Entrepreneur vs Intrapreneur:
| Parameter | Entrepreneur | Intrapreneur |
|---|---|---|
| Definition | Entrepreneurs are the creator of a venture. | Intrapreneurs are the proactive, dynamic employee of an existing venture. |
| Motive | Overall growth and Development of the organisation | in-house, technology, growth & development |
| Risk | Bears all types of risks | Risk is moderate |
| Status | Being an owner, holds supreme postion | are typically higher authorites in the company after founders. |
| Finance | Responsible for arranging funds | don't require to arrange funds |
| Nature | Intutive & predent | Restrictive |
| Role | Their major role are from outside the organisation. | from inside the organisation. |
Difference between Entrepreneur and Intrapreneur:
As we discussed above, entrepreneurs are the founder of an organisation, however, Intrapreneurs are the operators of an existing organisation responsible for its growth and functioning.
The entrepreneurs and Intrapreneur can be distinguished based on the following parameters as well. However, both of them have similar qualities like conviction, managerial skills, creativity, enthusiasm and innovation etc.
1) Meaning:
Although both entrepreneurs and Intrapreneurs have a similar mindset, the straightforward meaning is that an entrepreneur is the creator and owner of the enterprise, whereas an Intrapreneur is a highly efficient and proactive employee of the company.
2) Motive:
The primary motive of an entrepreneur to build the reputation of an enterprise, expand the organisation and ultimately enhance the profit for the organisation, however, an Intrapreneur focuses on in-house development, innovation, creative business ideas and responsible for planning, controlling, operating the organisation efficiently.
3) Risk:
When it comes to the risk involved during setting up and successfully operation of an enterprise, entrepreneurs, being the owner of the company bear more risk, whereas, Intrapreneurs don’t need to take financial risks, instead, they bear the risk within the permissible scope of the organisation.
However, Intrapreneurs take other risks eg. any innovative ideas or technology whether it would be successful on the ground or not, whether the customers would entertain/like those ideas or not.
4) Position:
As we learned, entrepreneurs are the founder of the company, hence hold the supreme position in the organisation, on the other hand, Intrapreneurs are the employees of the company, works for the growth of themselves as well as the company simultaneously, typically, hold the higher position after owners/ entrepreneurs.
5) Fundraising:
On fundraising, Intrapreneurs don’t need to acquire funds, instead, they utilise the funds availed by the company itself to implement their ideas or activities.
But in the case of entrepreneurs, they have to accumulate funds for the continuation and enhancement of the company. Entrepreneurs always seek different methods of arranging finance for their organisation.
6) Role:
Entrepreneurs are of intuitive and prudent nature, their thoughts and beliefs make them futuristic and capable enough to build a venture for society and themselves.
So, their role in the organisation is to provide enthusiasm, motivation and inspiration to their subordinates for the growth and development of the company as well as their employees.
However, an Intrapreneur is restrictive in nature, hence their role is to provide growth and development to the organisation by working efficiently.
7. Dependency:
The entrepreneurs, being the owner/ founder of the organisation, are completely independent. They are amongst the higher authorities in the company and don’t have to report to anyone.
However, Intrapreneurs are bounded by the entrepreneurs or their superiors. They can’t take significant decisions independently. They have to prove their capabilities to be in certain limitations.
Conclusion:
Hope you would have understood the critical difference between entrepreneurs and Intrapreneurs. I hope, I would have elaborated on every aspect of the distinction between these two terms.
In a nutshell, I would say entrepreneurs and Intrapreneurs have a similar mindset, but their circumstances make them different from each other.
That’s why some Intrapreneurs also create their own venture later on. Also, they don’t have to struggle so much because of their vast experience in the industry.
References: Entrepreneur vs Intrepreneur (source)
