Entrepreneur Vs Intrapreneur may sound similar, but they have some key differences. Let’s start with the introduction. An entrepreneur is someone who starts their own business and takes on all the risks and responsibilities that come with it.
They come up with innovative ideas, create a business plan, and gather the necessary resources to turn their vision into reality.
On the other hand, an intrapreneur is someone who works within an existing company but still exhibits entrepreneurial qualities. They think creatively, take initiative, and come up with new ideas to improve the company they work for.
Entrepreneurship
We understand that an entrepreneur is someone who starts a business. The process of creating an enterprise is called entrepreneurship. However, being an entrepreneur means more than just starting a business.
Meaning and Definition of Entrepreneurship
There is no single definition of entrepreneurship. The term ‘entrepreneurship’ has been defined by several authors differently.
Entrepreneurship is when you take your cool ideas and turn them into awesome business opportunities that make things better.
According to Stevenson and some other smart people, entrepreneurship is all about creating value by using a special mix of stuff to take advantage of a great chance.
Entrepreneurship is doing things in a better way and decision making under the Conditions of uncertainty
D.C Melland
J.A. Timmoans said that
“Entrepreneurship is all about making something amazing out of almost nothing.”.
J.A. Timmoans
Thus, entrepreneurship is identifying opportunities in the marketplace, arranging the resources required to pursue these opportunities, and investing the resources to exploit the opportunities for long-term gains.
Entrepreneurship is mathematically defined as follows:
In summary, when an entrepreneur does all the things needed to start a business, it’s called entrepreneurship. It’s like using a special mix of things to take advantage of an opportunity. So basically, entrepreneurship is the way to make a new business.
What is Entrepreneur
An entrepreneur can be defined as an individual who takes on the role of organizing and managing a business venture, typically with the aim of generating profit. This concept encompasses individuals who possess a unique set of skills and characteristics, such as creativity, innovation, risk-taking, and a strong drive for success.
Entrepreneurs are often driven by their passion for their ideas and are willing to take calculated risks in order to bring their visions to life. They are responsible for identifying opportunities in the market, developing business plans, securing funding, assembling a team, and overseeing the day-to-day operations of their ventures.
The concept of an entrepreneur is closely tied to the idea of entrepreneurship, which is the process of creating, launching, and managing a new business.
Difference between Entrepreneur and Manager
Entrepreneurs are different from managers. Sometimes, a person who starts their own business can also be in charge of managing it, but someone who is just a manager cannot start their own business.
An entrepreneur is different from a manager in the following ways:
| Entrepreneur | Manager |
|---|---|
| An entrepreneur begins a new business to satisfy his desires and make himself happy. | The main aim of a manager is to render his service in an enterprise already set up by someone. |
| The entrepreneur is the owner of the enterprise. He is his boss. | The manager is the employee (servant) of the entrepreneur. |
| An entrepreneur takes on all the risks and uncertainties that come with starting a business. | Managers neither share risk nor bear uncertainty. |
| Entrepreneur introduces innovations and new ideas | The manager executes the plans of the entrepreneur and thus plans to convert them into new ideas and practices |
| Entrepreneurs make money that can be unpredictable and inconsistent, and sometimes they might even lose money. | The manager gets paid for the work they do, and they always receive the same amount of money every time. Their salary is always positive and never goes below zero. |
| Entrepreneur’s responsibility is high. He is in charge of putting together the input and making things. | The manager’s responsibility is low. He is responsible for day-to-day office work. |
| An entrepreneur is self-motivated. | The manager is motivated by power. |
Besides what was mentioned earlier, there are a few more ways in which entrepreneurs and managers. They are:
- Entrepreneurs have an empowering perspective on failure. Managers see failure as bad Entrepreneurs are solution finders. Managers are problem-solvers.
- Entrepreneurs look into the future. Managers look into the past.
- Entrepreneurs build wealth. Managers make money.
- Entrepreneurs fly with eagles (eagles have the longest life span among the birds and have a lot of characteristic features that human beings have to learn). Managers peck
- around with chickens.
- Entrepreneurs take risks because of faith. Managers play it safe because of fear.
Intrapreneurs
The word intrapreneur was created in the United States during the late 1970s. Many skilled individuals from the business world are quitting their jobs to begin their own companies. Why are they leaving? They are leaving because they don’t have a chance to use their ideas and creativity.
These entrepreneurs find success in their endeavors. Some of them even pose a challenge to the companies they left. These kinds of entrepreneurs are now known as intrapreneurs.
Thus a new class of entrepreneurs who resigned from their well-paid executive jobs and started small businesses of their own to operate from within the organization and also enjoy complete freedom to apply their ideas of innovations can be termed intrapreneurs.
They believe in their abilities. They have a strong wish to make something unique. They want to be in charge and have a strong desire to express themselves and have more freedom in their current organization.
When they don’t get this freedom, they become less productive or even quit the organization to find a place where they can truly be themselves. Then they will look for a place that will give them the freedom and happiness they seek.
An American management expert, Gifford Pinchot III wrote his famous book ‘Intrapreneuring’ in 1985. He defined intrapreneurs as
the persons who resigned from their well-paid executive positions to start their business ventures.
Gifford Pinchot III
Gifford Pinchot said that intrapreneurs are like entrepreneurs, but they work inside big companies. They can also be called internal entrepreneurs or entrepreneurial managers.
In 1992, the American Heritage Dictionary defined an intrapreneur as
someone in a big company who takes charge of turning an idea into a successful product by being confident and determined to risk-taking and innovation”.
The American Heritage Dictionary
The senior-level managers may be encouraged by the entrepreneur to generate new ideas and then convert them into products through research and development activities within the framework of an organization. They are not treated as employees. They are given the freedom to operate on their own.
They are told to imagine themselves as business owners within the company. They are also given employee stock options. Thus they may become partial owners.
They are like entrepreneurial managers. They are called entrepreneurs.
Difference Between Entrepreneur Vs Intrapreneurs
| Entrepreneur | Intrapreneur |
|---|---|
| He is independent. | He is semi-independent. |
| He works for profit.He has to take on all the risks of the business. | He works for a salary.He doesn’t have to take on all the risks of the business. |
| He’s the actual owner of the company. | He doesn’t own the business, instead, he just works for it. |
| He operates from outside an organization | He operates from within the organization. |
| He turns the thoughts of an intrapreneur into real life. | He creates new ideas in the form of new products, processes, and services. |
| He raises the required capital. | He does not raise any amount of capital. |
Entrepreneur vs Intrapreneur vs Manager
| Entrepreneur | Intrapreneur | Manager |
|---|---|---|
| Independent | Semi-independent | Dependent on organizational structure |
| Works for profit, bears risks | Works for a salary, not all risks | Works for a salary, minimal risk |
| Actual owner of the business | Works for the business | Manages a specific department/team |
| Operates outside an organization | Operates within the organization | Operates within the organization |
| Turns ideas into reality | Generates ideas for the organization | Implements and oversees tasks |
| Raises required capital | Doesn’t raise capital | Manages resources within budget |
Conclusion
Now, let’s move on to the conclusion. In conclusion, both entrepreneurs and intrapreneurs play important roles in the business world. Entrepreneurs are risk-takers who start their own ventures and have the freedom to shape their own destiny.
They have the potential to create new industries and disrupt existing ones. On the other hand, intrapreneurs bring innovation and fresh ideas to established companies, helping them stay competitive and adapt to changing market conditions.
Whether you choose to be an entrepreneur or an intrapreneur, both paths require determination, creativity, and a passion for making a difference in the business world.
