Starting up a business or creating a new idea to develop a new product takes different forms. These forms are also taken up by different entrepreneurs based on their personality, experience and skills. There’s one who is only about solving social problems and is not really concerned about the financial benefits from the business. The innovator who starts a business from scratch with a very unique idea that has never existed before. Following that is another who copies the innovator’s idea but changes the implementation. And not to forget, there is one whose watchword is ‘hard work’ and another who has the money to buy a business. Entrepreneurs vary, and even though there might be similarities in all these people, they are doing exactly different things to get what they want. The relation between entrepreneurs is what brings about the concept of intrapreneurship.
What is entrepreneurship?
Entrepreneurship is basically the creation of a new business. Entrepreneurs are individuals who come up with these ideas that help to develop unique products or businesses. They initiate change, bring something new and work towards bringing things to individuals to make their lives easier and much better and also to achieve goals with more efficiency. These are the sole owners of the business and make all the decisions. Entrepreneurs are also known as risk-takers who possess several skills that put them in a position to handle, manage, improve and sustain their businesses. They are leaders, and they work independently and answer to only themselves.
What is Intrapreneurship?
Intrapreneurship, on the other hand, is a different thing entirely even though there are some similarities as mentioned before. According to Wikipedia, intrapreneurship is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship is known as the practice of a corporate management style that integrates risk-taking and innovative approaches. It incorporates the reward and motivational techniques that are more traditionally thought of as being the province of entrepreneurship. So basically, an intrapreneur is an employee who works for an entrepreneur but with certain perks and authority to come up with innovative ideas that help the business.
The intrapreneurs have benefits that make them also feel in charge of the business, though they definitely have boundaries too. They work with other employees to develop ideas that will benefit the company and bring progress. This often happens in small companies still in the development stage. Employees are considered part of the company, and their ideas are not only welcome, but they are also often implemented if agreed to. Despite their role, all things relating to risk-taking, financial needs and major decisions are still the sole responsibility of the entrepreneur.
The responsibilities they have are quite similar to those of entrepreneurs, and that is why they are called ‘inside entrepreneurs’. They are self-starters who are ambitious, goal-orientated, proactive and creative and can take up certain roles in an organization. In some cases, intrapreneurs take up more than one role in an organisation and are in charge of a number of things.
Differences between Entrepreneurs and Intrapreneurs
If there’s one thing that must have been established, it’s the fact that entrepreneurs and intrapreneurs are different. Similar to some extent but different. The need for them became even greater with the regular advancements in technology. This has allowed businesses to think more broadly and bring more innovations to give their products a chance of succeeding in the market. In the next subheadings, I’ll be discussing some of the differences between entrepreneurs and intrapreneurs based on some certain points.
1. History
The word ‘entrepreneurship’ came about thousands of years ago. It was first used to describe individuals who took up new roles. They were also known as the undertakers of a new opportunity. They were people who saw a problem, identified it and brought about solutions to help tackle it. The early entrepreneurs were people who traded things to get something else, and most of them were farmers. Specialization has helped to properly put roles into the concept of entrepreneurship.
Intrapreneurs, however, were first mentioned in 1980 in a book published by management consultants Gifford and Elizabeth Pinchot. The book described intrapreneurs as “dreamers who take initiative for producing innovative technologies of any sort within an organization”. Over the years, intrapreneurship has become popular with the need for brands and companies to expand their creative resources and bring more innovations to their products to sustain them in this era of technology.
2. Roles
Entrepreneurs create a new business either from scratch or from an existing business. Either way, he/she is involved in the development of new ideas used in developing the business. They also take risks and do almost everything involved in making sure the business is successful. Entrepreneurs are the sole owners and the main decision-makers. Having the freedom to make decisions for the business and being able to alter the business design whenever necessary.
Intrapreneurs work under an entrepreneur. They don’t create the business; instead, they work in an already established business. Helping with taking up tasks that grow the business and are given the opportunity to develop new ideas and innovation for the business. Intrapreneurs are limited to that and are not in any way decision-makers for the company. All decisions to be made eventually go to the office of the entrepreneur.
3. Investment
As an entrepreneur, it is your duty and responsibility to source funds to help start up your business. Everything regarding the investment of money or anything that involves spending money is totally the responsibility of the entrepreneur. They are the ones who develop the ideas and come up with ways to get money to be able to run the business. It is after that they’ll begin to employ people to take up roles if they want.
Intrapreneurs have no hand in investments. They have no issue with the financial aspect of the organisation, and how money comes in or goes out is not their responsibility.
4. Risks
Generally, entrepreneurs are the risk-takers in the business. They take the necessary risks as to the needs of the business. Also, in times of failure or losses, the entrepreneur bears all the losses alone. All the things put in place and how they go wrong are totally put on the entrepreneur. He/she is responsible for the failure and how it is managed.
The intrapreneur has no concern with risks at all. Risks taken by the company do not concern them, and how the company deals with losses is also not their problem. They are restricted to bringing innovation and fresh ideas; risk is not their business.
5. Resources
All resources utilized during the process of running or operating the business are provided by the entrepreneur. He/she sees that everything needed for the implementation of their strategy or idea is in place so that work can begin. They pay for the resources and work to get all the necessary resources required.
Intrapreneurs work with what the company provides. Simply put, what is provided is what is used; it doesn’t go beyond that. They’re not concerned with how resources get to the company; the entrepreneur is.
6. Benefits
Just as the risks are the sole problem of the owner, the benefits are also enjoyed by the owners. It is the decision of the entrepreneur to do whatever he/she deems fit with the profits or benefits derived from the business. Entrepreneurs suffer the losses alone and enjoy the profits alone.
For intrapreneurs, career rewards or anything similar is theirs for the taking. The organization reaps all the benefits, and it is up to the owners to determine what to do with it. This includes the remuneration or bonus for the intrapreneur. They can be rewarded with incentives or promotions for the ideas they bring that eventually lead to success.
If there’s one thing to note from both individuals, it is their ability to think out of the box and come up with creative ideas that helps boost the success of the business. Entrepreneurs might be the initiators of change and owners of new businesses, but intrapreneurs can help with sustaining the business and helping them attain success.
