Entrepreneur and Intrapreneur, both terms hold relevance in their own way. it’s very important for us to understand these two terms to know the value that they hold in any business. Although both entrepreneur and intrapreneur differ from each other, they can be used interchangeably.
So, if you want to understand the difference between these two concepts then you must stick to this article and read it till the end. Now let’s start with the basics first then we will move on to the difference.
Entrepreneur: an introduction!
An entrepreneur is an independent person or a leader who sets up his own business with new ideas, concepts, and skills. We can say he is a person who takes a considerable amount of risk to own and operate the business, with a goal of earning returns and rewards, from that business or organization. In any organization, an entrepreneur is the most important person who brings new opportunities, products, techniques, and ideas to the business.
Let’s move ahead and try to know about an ‘Intrapreneur’.
Intrapreneur: an introduction!
An intrapreneur is an employee of an organization who is paid remuneration or salary as per the success unit of the business unit, for which he/she is hired or responsible. Therefore, intrapreneurs are usually found in enterprises that encourage experiments, bear failures, recognize success, and share the wealth. In other words, intrapreneurs are able to work on a special project that brings innovation within their organization.
Now it’s time to dig into the difference between these two. This will help you to understand well.
Key differences between entrepreneur and intrapreneur are as follows:
The primary motive of the entrepreneur is getting innovation and financial independence. It is all about the sole individual then he had to be financially independent to run his own business.
Whereas, an intrapreneur’s primary motive is enhancing the rewarding capacity, developing new ideas, using skills in his work for the betterment of the organization.
An entrepreneur is dependent on his own operation. He is fully independent for his organization activity process. He is the leader of the operation, therefore, he doesn’t work for others and he is his own boss.
On the other hand, an intrapreneur completely dependent on entrepreneur i.e. the owner of the company. He works for an organization under specified rules and regulations.
An entrepreneur raises and manages the fund for himself to establish a company. He manages his own capital and assets.
And there is no need for an intrapreneur to raise or manage fund because the organization raises and invests capital for the business. He just needs to work there according to demand, that’s it.
Bearing of risk
In the case of an entrepreneur, any kind of risk occurs it will be beard solely by him. No will be responsible for it. He has to bear 100% business risk and loss of his own money.
If we look at intrapreneur then he doesn’t bear the risk fully, but yes as he is the part of the organization he risks others money. That’s why he bears moderate risks.
Decisions for the company
An entrepreneur takes all the decisions related to the company. His decisions are independent to execute his dreams for the company to achieve the goals.
Whereas an intrapreneur doesn’t take decisions but he can take collaborative decisions to execute dreams of the company. He can suggest things to the owner of the company.
Failure and mistakes
It is the work of an entrepreneur to recognize what are the failures of the company that are being the obstacle in achieving the goals. After recognizing the failures he needs to take some innovative decisions and ideas to put them into efforts.
Same as an intrapreneur’s task is to keep any risky project secret unless it is prepared due to high concern for failure and mistakes. He can also discuss failures and mistakes with the entrepreneur.
The time limit or bound
For an entrepreneur, there is no such time-bound or limitations that have to be followed by him. It may take several years for the growth of the company. It is his personal concern.
Whereas, an intrapreneur is bounded by the timetable of the company. The corporate timetable which he has to follow to complete his work on the given time.
In the case of an entrepreneur, he operates from the outside of the organization. On the contrary, an intrapreneur operates from inside the organization or from within the organization.
As now you have read the difference between entrepreneur and intrapreneur above, I hope you have understood the complete meaning of entrepreneur and intrapreneur and how these two varies from each other. With the introduction of new technologies and skills, it’s important that you get to know the gist of these two concepts and mould yourself according to the competition.
However, one thing I didn’t talk about is what makes these two concepts similar in nature? It’s their passion to see thing through to the end and the courage to face failure. That’s why both entrepreneur and intrapreneur play a great role to enter into new businesses or new markets to compete with their competitors.
So let us know which one do you want to become? If you have any doubts or you have any suggestion, kindly comment below. Get in touch with us for another article.