The Differences Between Intrapreneurship and Entrepreneurship
What is Intrapreneurship?
Intrapreneurship is a term used to describe the concept of entrepreneurship within an established organization. It involves individuals who think and act like entrepreneurs, but are employed by a company. Intrapreneurs have an entrepreneurial mindset and are able to bring innovation and creativity to their organization, which can improve its overall performance.
Some examples of intrapreneurship might include employees who develop new products or services, create new business models for their company, or implement new processes that improve productivity and efficiency.
What is Entrepreneurship?
Entrepreneurship, on the other hand, refers to the process of starting and running a new business venture. An entrepreneur is someone who identifies a business opportunity, develops a plan to exploit it, and then starts a business to pursue that opportunity.
Entrepreneurship can involve a wide range of activities, including developing new products and services, identifying target markets, building a customer base, and managing finances and operations.
The Key Differences Between Intrapreneurship and Entrepreneurship
While there are some similarities between intrapreneurship and entrepreneurship, there are also some key differences that distinguish the two concepts. Here are some of the main differences:
1. Ownership: One of the biggest differences between intrapreneurship and entrepreneurship is the issue of ownership. Intrapreneurs may be responsible for developing new ideas and projects, but they are ultimately working for someone else – the company they are employed by. Entrepreneurs, on the other hand, are the owners of their business and have complete control over the direction and strategies of their venture.
2. Risk: Entrepreneurs typically take on a significant amount of risk when starting a new venture, as there is no guarantee that their business will be successful. Intrapreneurs may take on some risk, but it is generally less than what entrepreneurs face since they have the backing and support of their company.
3. Resources: Intrapreneurs have the advantage of working within an established organization, which means they have access to a wide range of resources, including funding, expertise, and networks. Entrepreneurs, on the other hand, typically have to build their own resources from scratch.
4. Motivation: Intrapreneurs are often motivated by the opportunity to bring change and innovation to their company, as well as the potential for recognition and advancement. Entrepreneurs are motivated by the potential for financial gain, as well as the opportunity to be their own boss and pursue their own vision.
The Importance of Intrapreneurship and Entrepreneurship
Both intrapreneurship and entrepreneurship are important for driving innovation, growth, and competitiveness. Intrapreneurs can bring fresh perspectives and ideas to their organizations, which can improve performance and help the company stay ahead of competitors. Entrepreneurs can create new industries and jobs, as well as contribute to economic growth.
Ultimately, both concepts are important for generating value and driving progress, and it is important for individuals and organizations to understand the differences between them in order to leverage their benefits.
Table difference between intrapreneurship and entrepreneurship
| Parameter | Intrapreneurship | Entrepreneurship |
|---|---|---|
| Definition | Intrapreneurship refers to the act of innovation and creativity undertaken by an individual or a team within an established company or organization | Entrepreneurship refers to the process of designing, launching and running a new business venture or enterprise |
| Ownership | Intrapreneurs work under the umbrella of a larger company or organization, they don’t have ownership of the venture they are creating | Entrepreneurs own the venture they have created |
| Risk | Intrapreneurs face less risk because they have the backing and resources of the established organization, they have less to lose compared to entrepreneurs | Entrepreneurs face more risk because they often invest their own money and time in creating and running the venture, there is more at stake for them |
| Capital | Intrapreneurs have access to the capital and resources of the parent company, which they can tap into to develop their ventures | Entrepreneurs need to raise capital from external sources, such as venture capitalists, angel investors or crowdfunding platforms, to develop their ventures |
| Goals | Intrapreneurs often have the goal of developing new products that will benefit the parent company and contribute to its growth | Entrepreneurs often have the goal of creating a profitable business that can grow and thrive on its own |