The Difference Between Entrepreneurship and Intrapreneurship
What is Entrepreneurship?
Entrepreneurship is the process of starting and managing a new business venture. This means that entrepreneurs create new products or services, develop a business plan, secure funding, and take on all the risks associated with launching and running a business. Entrepreneurs are typically motivated by the potential profits that can be gained by taking a new idea or concept to market.
What is Intrapreneurship?
Intrapreneurship is similar to entrepreneurship, except that it takes place within an existing company or organization. Essentially, an intrapreneur is someone who behaves like an entrepreneur, but does so within the confines of their current workplace. Intrapreneurs are employees who are given the freedom and resources to develop and launch new projects or initiatives that will benefit the company.
The Differences Between the Two
While entrepreneurship and intrapreneurship share many similarities, there are some key differences between the two. Firstly, entrepreneurs are responsible for creating a new venture from scratch, whereas intrapreneurs work within an established organization. This means that entrepreneurs bear all the risks associated with creating a new business, while intrapreneurs have the backing and resources of their employer.
Another major difference between the two is the motivation behind them. Entrepreneurs are typically motivated by the potential profits that can be gained by starting a successful new business. In contrast, intrapreneurs are motivated by the opportunity to develop and launch new projects that could benefit their current employer.
Finally, entrepreneurship often involves a higher degree of risk than intrapreneurship. Entrepreneurs need to secure funding, develop a business plan and launch a new venture, all while taking on the risk of failure. In contrast, intrapreneurs have the backing of their employer and may have access to existing resources and contacts to support their projects.
Conclusion:
In conclusion, while entrepreneurship and intrapreneurship share many similarities, there are key differences between the two. Entrepreneurs are responsible for creating and launching new businesses, while intrapreneurs work within an established organization to develop and launch new projects. The motivations and risks associated with both differ as well. Understanding these differences can help individuals decide which path may be best for them in their career.
Table difference between entrepreneurship and intrapreneurship
| Entrepreneurship | Intrapreneurship |
|---|---|
| Entrepreneurship involves creating and managing a business on one’s own. | Intrapreneurship involves coming up with new ideas and driving innovation within an existing organization. |
| Entrepreneurs are responsible for taking financial risks and managing all aspects of their business. | Intrapreneurs typically have more resources at their disposal and less personal risk, as they are working within an established organization. |
| Entrepreneurs often have to secure funding on their own, either through investments or loans. | Intrapreneurs have access to company resources, including funding and support from management. |
| Entrepreneurial ventures can be high risk, but also have the potential for high reward and significant growth. | Intrapreneurial initiatives typically have less risk, but may have limited potential for growth due to the constraints of the existing organization. |
| Entrepreneurs often have a strong vision for their business and are driven by the desire to make it successful. | Intrapreneurs are often motivated by a desire to bring change and innovation to their organization. |