Difference Between Entrepreneur and Intrapreneur

As both entrepreneur and intrapreneur share similar qualities like conviction, creativity, zeal and insight, the two are used interchangeably. However, the two are different, as an entrepreneur is a person who takes a considerable amount of risk to own and operate the business, with an aim of earning returns and rewards, from that business. He is the most important person who envisions new opportunities, products, techniques and business lines and coordinates all the activities to make them real.

Definition of Entrepreneur

An entrepreneur is an individual who conceives the idea of starting a new venture, take all types of risks, not only to put the product or service into reality but also to make it an extremely demanding one.  He  is someone who:

• Initiates and innovates a new concept,
• Recognises and utilises opportunity,
• Arranges and coordinates resources such as man, material, machine and capital,
• Take suitable actions,
• Faces risks and uncertainties,
• Establishes a startup company,
• Adds value to the product or service,
• Takes decisions to make the product or service a profitable one,
• Is responsible for the profits or losses of the company.

Entrepreneurs are always the market leader regardless of the number of competitors because they bring a relatively new concept in the market and introduce change.

Definition of Intrapreneur

An intrapreneur is nothing but an entrepreneur within the boundaries of the organization. An intrapreneur is an employee of a large organization, who has the authority of initiating creativity and innovation in the company’s products, services and projects, redesigning the processes, workflows and system with the objective of transforming them into a successful venture of the enterprise.

The intrapreneurs believe in change and do not fear failure, they discover new ideas, looks for such opportunities that can benefit the whole organizationtakes risks, promotes innovation to improve the performance and profitability, resources are provided by the organization. The job of an intrapreneur is extremely challenging; hence they are appreciated and rewarded by the organizationaccordingly.

From last few years, it has become a trend that large corporations appoint intrapreneur within the organization, to bring operational excellence and gain competitive advantage.

 

Key Differences Between Entrepreneur and Intrapreneur

The important distinguishing points between entrepreneur and intrapreneur, are given in the following points:

1.      An entrepreneur is defined as a person who establishes a new business with an innovative idea or concept. An employee of the organization who is authorized to undertake innovations in product, service, process, system, etc. is known as Intrapreneur.

2.      An entrepreneur is intuitive in nature, whereas an intrapreneur is restorative in nature.

3.      An entrepreneur uses his own resources, i.e. man, machine, money, etc. while in the case of an intrapreneur the resources are readily available, as they are provided to him by the company.

4.      An entrepreneur raises capital himself. Conversely, an intrapreneur does not need to raise funds himself; rather it is provided by the company.

5.      An entrepreneur works in a newly established company. On the other hand, an intrapreneur is a part of an existing organization.

6.      An entrepreneur is his own boss, so he is independent to take decisions. As opposed to intrapreneur, who works for the organization, he cannot take independent decisions.

7.      This is one of the salient features of an entrepreneur; he is capable of bearing risks and uncertainties of the business. Unlike intrapreneur, in which the company bears all the risks.

8.      The entrepreneur works hard to enter the market successfully and create a place subsequently. In contrast to Intrapreneur, who works for organization-wide change to bring innovation, creativity and productivity.