Introduction
In today’s global business environment, innovation and leadership are more important than anything. There are two important characters by usual being referred for business and innovation namely the entrepreneur vs Intrapreneur. Nonetheless, both of these aspects are critical for the progress; however, they function in various manners. I’m sure both these terms have crossed your path at some point but do you know what they stand for? Well are they really that different? To help you better understand these two important positions in the world of business, we’ll take a closer look at each role here in this blog post. So let me explain it to you in a way that doesn’t sound so much like a lecture.
what is an entrepreneur?
Let’s start with the classic: the entrepreneur. In other words, an entrepreneur is a person who decides to build their own enterprise from scratch and work on a new idea. They are the dreamers who find a business where other s find obstacles. It’s not simply throwing ideas in a test tube; they are implementing them, and have to bear all the consequences. It is possible to describe them as constructors of their own business kingdom.
Key characteristics of an entrepreneur include:
• Innovative and Visionary: They are the dream chasers who design the next big thing to offer consumers, the company, or the industry.
• Risk-Takers: They are ready to take chances for themselves to become business owners with all the potential outcomes of the business.
• Resourceful: Externally, they are good at procurement of most of their own requirements like funds, people, etc.
• Independent: They decide, that is why they are independent agents who do not report to any higher authority.
• Market Leaders: They are the ones who want to be heard and build a strong positions in a certain market.
Business people are important to any economy as they are the ones who bring new ideas into the market and thus bring change. They provide customization by identifying customer requirements in advance and designing new products. In other words, they are the market makers. For example, one could discuss charismatic leaders such as Steve Jobs and Bill Gates – both of whom radically changed their field due to their entrepreneurship.
What About an Intrapreneur?
So we have the concept of intrapreneur Now let us discuss it detailed. It is okay to think of them as the corporate equivalent of inventors. Intrapreneur refers to a worker who applies the managerial techniques of an entrepreneur while working in an organised firm. They are as innovative and focussed as any entrepreneur, but they do not start out on their own, they work within a defined organization. They’re the reinventing and changing agents within the company that no one sees but does the change from behind.
Key characteristics of an intrapreneur include:
• Innovative within Constraints: They are pertinent to the betterment of the company products, services, and process.
• Risk-Aware: They take less risk, most of the financial risks are assumed by the company.
• Resource Utilizers: They utilize resources that are availed by the company.
• Team Players: These people do not transcend the structure of the organization in their functions.
• Change Agents: It means they struggle to enhance existing organizational processes and organizational environment.
A review of literature has shown that intrapreneurs are a justified asset to organizations as they enhance innovation and consequently, organizational performance, efficiency and viability. They may head particular projects thus challenging the company’s capacity in new ways. Some of the best examples of how intrapreneurship has worked include Google’s 20 percent time policy which resulted in development of Gmail and Google Maps. Apple’s iPod, and IBM’s Watson are also good examples of intrapreneurial projects as well.
what are similarities of entrepreneur vs Intrapreneur?
So now that we know what each is, let us find out what are the differences between an entrepreneur vs Intrapreneur. Despite their different working environments, there are some significant shared difference between entrepreneur vs Intrapreneur:
• Entrepreneurial Mindset: In entrepreneur vs Intrapreneur Both possess a proactive problem solving behavior. They are positive actors; they are not just spectators; they fight to change things for the better.
• Innovation and Creativity: Both have desire to work to create new products and come up with the next big thing.
• Leadership Abilities: Both must be able to persuade and coordinate people – it can be either one’s own company or a team somewhere in the organization.
• Adaptability: Both are required to be change ready and ready for the unexpected because the business climate is never static.
• Intelligence: They both require exceptional problem solving ability as well as good market perception mechanisms.
• Vision: They both require the metacognition to discern organization markets and exploit opportunity.
• Desire for Improvement: It is characteristic of both those who work in this area because their goal is to enhance products, services or processes, their own, as well as the ones of the companies which employ them.
• Continuous Learning: Both of them are motivated by the love for learning as they go.
• Innovation and Creativity: Both have desire to work to create new products and come up with the next big thing.
• Leadership Abilities: Both must be able to persuade and coordinate people – it can be either one’s own company or a team somewhere in the organization.
• Adaptability: Both are required to be change ready and ready for the unexpected because the business climate is never static.
• Intelligence: They both require exceptional problem solving ability as well as good market perception mechanisms.
• Vision: They both require the metacognition to discern organization markets and exploit opportunity.
• Desire for Improvement: It is characteristic of both those who work in this area because their goal is to enhance products, services or processes, their own, as well as the ones of the companies which employ them.
• Continuous Learning: Both of them are motivated by the love for learning as they go.
All these similar characteristics emphasized that there are no difference between entrepreneur and intrapreneur since they both bear the same fundamentals of innovativeness, willingness to lead and the desire to make a change.
difference between entrepreneur and Intrapreneur
So my question would be – if the two roles are so similar, what is the real difference between entrepreneur and intrapreneur? Here’s where the distinctions become more apparent:
• Meaning: An entrepreneur is a person who creates and owns a new business venture with an idea to venturing in a new business uniquely while an intrapreneur is an employee practicing entrepreneurship within the organization.
• Approach: Entrepreneurship is easier to explain them as being smart and self-sufficient and charting their course. Intrapreneurs are corrective, carried out within the organizational framework of the company.
• Resources: Business owners rely on their own cash, bank loans and outside financiers. Intrapreneurs harness the resources that are accorded to them by the organisation employing them.
• Capital: An entrepreneur invest their own money An entrepreneur called his/her own capital. While managing an intrapreneurship, intrapreneurs do not seek funds themselves but their activity is funded by the company.
• Risk: An entrepreneur fully owns the business and all the risks that are inherent in the business. Instead the intrapreneur gets certain guarantees whereby the company assumes risk for him/ her.
• Nature: Entrepreneurs are creative by nature, intrapreneurs are creative too, but compared with entrepreneurs, intrapreneurs are often looked to be less inventive.
• Company Type: Entrepreneur are Employed in a start up organization. Intrapreneur are Specialized in an organized enterprise as a part of a business structure.
• Dependency: Entrepreneur are Independent and makes his or her decision. On the other hand Intrapreneur vary depending on the organization that the individual works for and more to the point, the organization’s policies they have agreed to accept from the company they work for.
• Primary Goal: Entrepreneur’s primary goal is to develop a competitive advantage in the existing economic environment. Intrapreneur encourage innovation as well as mentor change across the working environments of the organization.
• Objective: An entrepreneur plans to gain a strong market niche and to introduce a novelty to the market. An intrapreneur, in other words, practices the skill of enhancing, transforming, and innovating the organization which he or she is part of.
• Motive: Generally, the motive of an entrepreneur is make the world a better place with the product innovation or ideas. The purpose of an intrapreneur is to add value to his or her firm and to assist it in gaining growth.
• Control: Entrepreneur completely owns and manages their business and product. Intrapreneur somewhat less in command than being a contractor, is employed by the company.
Advantages and Disadvantages of entrepreneur vs Intrapreneur
Both paths, evidently, have their privileges and difficulties. Here’s a quick rundown:
Entrepreneurship
Potential Benefits:
• You earning an independent income.
• You can choose where your company is going.
• You get decision making freedom.
• There are things you are free to do due to your freedoms.
• You can enjoy the fruit of the success financially.
• Possibilities mean that you have the ability to change people’s lives in a positive way.
Potential Drawbacks:
• You have most of the control over successes and failures.
• You must bear all business related and financial risks as well.
• It can be very stressful, most of the time especially at the start.
• May need extra hours of work to be done all the time.
• Work life and personal life are merged most of the time.
• You earning an independent income.
• You can choose where your company is going.
• You get decision making freedom.
• There are things you are free to do due to your freedoms.
• You can enjoy the fruit of the success financially.
• Possibilities mean that you have the ability to change people’s lives in a positive way.
Potential Drawbacks:
• You have most of the control over successes and failures.
• You must bear all business related and financial risks as well.
• It can be very stressful, most of the time especially at the start.
• May need extra hours of work to be done all the time.
• Work life and personal life are merged most of the time.
Intrapreneurship
Potential Benefits:
• In essence, new ideas are not very capital intensive when it comes to financial risks.
• You may be allowed to do things that are prohibited to other employees.
• There is evidence that a successful intrapreneurial practice can result in promotion.
• You will personally derive satisfaction from working with your company to make it successful.
• You can easily find fulfillment with one’s self interest within the parameters of the company’s operations.
Potential Drawbacks:
• You are not your own boss.
• There maybe, limited freedom of choice and decision making on particular projects.
• There is less decision making accountability on projects.
• There is a possibility of losing significant financial returns for successful investment.
• You might never be awarded for tasks that you accomplish.
If new initiatives do not pay off, your career could be held back as you remain waiting for results.
• In essence, new ideas are not very capital intensive when it comes to financial risks.
• You may be allowed to do things that are prohibited to other employees.
• There is evidence that a successful intrapreneurial practice can result in promotion.
• You will personally derive satisfaction from working with your company to make it successful.
• You can easily find fulfillment with one’s self interest within the parameters of the company’s operations.
Potential Drawbacks:
• You are not your own boss.
• There maybe, limited freedom of choice and decision making on particular projects.
• There is less decision making accountability on projects.
• There is a possibility of losing significant financial returns for successful investment.
• You might never be awarded for tasks that you accomplish.
If new initiatives do not pay off, your career could be held back as you remain waiting for results.
Career Paths and Transitions
Most professionals operate as intrapreneurs when they first join the working world, and then graduate to becoming mere entrepreneurs. It would be beneficial when they have their own company since the experience and skills they acquired within being an intrapreneur count when managing the new company. This real world experience is important and it also prevents candidates from struggling when they start managing their own enterprises. It also applies to some entrepreneurs who having run their own business turn into intrapreneurs. They can pass most of these experiences to other organizations for their improvement.
It would be also relevant to mention that, contrary to a common belief that business owners are young, the average age of an entrepreneur at the moment of start . This underlines the fact that there is no need to run scared into external entrepreneurship or choosing between entrepreneur vs Intrapreneur, and it can often be useful to work on intrapreneurial experience for several years.
It would be also relevant to mention that, contrary to a common belief that business owners are young, the average age of an entrepreneur at the moment of start . This underlines the fact that there is no need to run scared into external entrepreneurship or choosing between entrepreneur vs Intrapreneur, and it can often be useful to work on intrapreneurial experience for several years.
Is Entrepreneurship A Good Major For You?
An academic foundation is valuable whether one is To oriented toward becoming an entrepreneur or an intrapreneur. Entrepreneurship degree could assist you in gaining the understanding of realistic theories to apply in a workplace. You’ll study topics like:
• Solution advancement.
• Modern marketing practices
• Commercial and Interpersonal communication
• Production system design
• Venture capital financing
Other course work often includes: areas of management such as organizational behavior, business finance, strategic management and ethical and legal consideration. It is important to remember that often a business plan can be submitted in the context of a capstone for most degree programs. As practice, it is also recommended to finish internships to have working experience and to know people in this field.
Making the Decision
There is no right answer to the questions as to what type of counsel you should choose: Well, regarding this it actually doesn’t matter: there’s no right and wrong doing here – just skills one or another, interests, objectives, or, simply, an ability to take risks.
Here are a few questions to consider:
• Are you an introvert / extrovert or do you in-between?,
• How do you feel about being exposed to substantial levels of financial risk?
• Are you ready to establish a new vision, or, perhaps, enhance the one you were given?
• What are the goals in reaching the long-term employment objectives?.
You also don’t have to choose immediately. To some extent it is permissible to become an intrapreneur before becoming an entrepreneur. Career exceptionalism is not the only way of approaching the process of choosing your jobs over the course of a lifetime in entrepreneur vs Intrapreneur.
Conclusion
Entrepreneurs vs Intrapreneurs are crucial to dynamics of change and advancement within the business environment. Although they work in different conditions and carry different risks and opportunities within their decision making while choosing entrepreneur vs Intrapreneur, they are oriented on innovation, leadership and the intent to produce a positive impact.
When thinking about your job choice, think about why you are excited and what kind of difference you want to make. No matter whether you are starting your entrepreneurial plan or trying to disrupt an existing company from the inside, your talent and ideas are crucial.