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Difference Between Entrepreneur and Intrapreneur

entrepreneur vs intrapreneurAs 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.

On the contrary, an intrapreneur is an employee of the organization who is paid remuneration according to the success of the business unit, for which he/she is hired or responsible.

The primary difference between an entrepreneur and intrapreneur is that the former refers to a person who starts his own business with a new idea or concept, the latter represents an employee who promotes innovation within the limits of the organization. In this article excerpt, we are providing you wit some other important points of distinction between the two.

Content: Entrepreneur Vs Intrapreneur

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Video
  5. Conclusion

Comparison Chart

Basis for ComparisonEntrepreneurIntrapreneur
MeaningEntrepreneur refers to a person who set up his own business with a new idea or concept. Intrapreneur refers to an employee of the organization who is in charge of undertaking innovations in product, service, process etc.
ApproachIntuitiveRestorative
ResourcesUses own resources.Use resources provided by the company.
CapitalRaised by him.Financed by the company.
EnterpriseNewly establishedAn existing one
DependencyIndependentDependent
RiskBorne by the entrepreneur himself.Taken by the company.
Works forCreating a leading position in the market.Change and renew the existing organizational system and culture.

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 organisation. An intrapreneur is an employee of a large organisation, 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 organisation takes risks, promotes innovation to improve the performance and profitability, resources are provided by the organisation. The job of an intrapreneur is extremely challenging; hence they are appreciated and rewarded by the organisation accordingly.

From last few years, it has become a trend that large corporations appoint intrapreneur within the organisation, 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 organisation who is authorised 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 organisation.
  6. An entrepreneur is his own boss, so he is independent to take decisions. As opposed to intrapreneur, who works for the organisation, 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.

Video: Entrepreneur Vs Intrapreneur

Conclusion

Since, last few decades, it has been noticed that people give more value to innovations, which lead to the rise in the number of startup companies year on year. This is because the world is changing rapidly with the advancement in technology. It has also resulted in the competition among companies. Now, if the enterprise wants to stand in competition with other enterprises, it should bring something new in their products. Entrepreneur and Intrapreneur play a major role here, to enter into new business and even markets.

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Comments

  1. Sunny says

    December 20, 2016 at 5:18 am

    Very much useful information .

    Reply
    • Faith joan says

      March 8, 2021 at 12:30 pm

      it’s well explained thanks so much

      Reply
    • Dominic says

      March 31, 2022 at 1:03 am

      It is useful thanks very much.

      Reply
  2. lata says

    January 25, 2017 at 5:28 pm

    Good source of information

    Reply
  3. yogesh says

    February 11, 2017 at 9:51 pm

    thanks a lot for providing this type of information related to industry line.

    Reply
  4. Raymond says

    February 15, 2017 at 5:37 pm

    Informative

    Reply
  5. Hezekia jiroli says

    May 3, 2017 at 7:05 pm

    Very much helpful

    Reply
    • Surbhi S says

      May 4, 2017 at 9:45 am

      Thanks a lot to all the readers for sharing your views with us. 🙂

      Reply
  6. Doris says

    May 12, 2017 at 3:30 am

    Thanks for providing this work…i prefer it than that of my teacher..Easy to learn and to understand it…

    Thanks again
    Cause i think have pass my exam with this explanation

    Reply
  7. chisha Florence says

    August 22, 2017 at 11:27 am

    Very informative

    Reply
  8. Saul Savage says

    November 4, 2017 at 2:04 am

    Very good information.

    Reply
  9. dali wayne maphosa says

    May 16, 2018 at 8:27 pm

    thanks for the info

    Reply
  10. Jenay Bruska says

    September 16, 2018 at 5:50 am

    Thank you very much for this. It gives clear concise and easy to understand information that my teacher doesn’t seem able to give. Thank you once more

    Reply
  11. MD HUMAYAN KABIR says

    March 5, 2020 at 9:34 am

    Thank you very much for your precise and vivid easily understandable explanation which i did not got in my university.

    Reply
  12. victor ogona says

    January 22, 2021 at 9:37 am

    thanks for the information, its very helpful, knowing the difference between the both

    Reply
  13. James Sandu says

    February 4, 2021 at 8:55 pm

    Thank you for providing this essential information. Further, it is very easy to understand. I say once more thank you.

    Reply
  14. Henry Rehema says

    November 24, 2021 at 11:58 am

    Thank you for the information …. it’s straight to the point and easy to understand.

    Reply
  15. limunga loridiana says

    December 23, 2021 at 5:19 pm

    its was lovely and helpful and skilful

    Reply
  16. dionda says

    January 31, 2022 at 9:06 am

    Thanks so much for the relevant information

    Reply
  17. Nadege says

    May 12, 2022 at 8:18 am

    I understood this like never before. A big shout out to all

    Reply
  18. Sachin yadav says

    July 10, 2022 at 5:58 pm

    Thank you.. I am impressed 👍
    Now I am the also entrepreneur

    Reply
  19. Jimmy says

    August 29, 2022 at 2:40 pm

    Thank you and this helped me to know the difference between the both .

    Reply
  20. James Moriarty says

    October 8, 2022 at 12:28 pm

    Very nice

    Reply
  21. smart changwe says

    April 23, 2023 at 7:05 am

    A clear and concise explanation that is easy to understand and relate to. Thanks for the article.

    Reply
  22. Silo Muchindu says

    September 29, 2023 at 8:19 am

    Insightful information.
    thank you.

    Reply

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