No doubt, all the business concerned people are familiar with the term “entrepreneur”. An entrepreneur is someone ready to take on financial risk to start his very own business with a new concept or idea. A large percentage of youngsters of this generation aspire to be an entrepreneur.
However, many of them are completely unaware of the career opportunities of intrapreneurship. The intrapreneurship specifies a profession in which an employee plays the same role as an entrepreneur under an organization. Here, the organization is the owner and the intrapreneur will utilize his innovative and new ideas to benefit the organization.
Intrapreneur or entrepreneur both share several similar qualities like creativity, insight, and zeal. Yet, both are different from each other in many respects as well. Let’s explore, the difference together, to find out which one is suitable for you.
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Basic Differences between Intrapreneur and Entrepreneur
An initiator who start-up an entirely new business all by himself with a new and innovative idea is defined as an entrepreneur. Whereas, an intrapreneur is a subordinate employee of an organization who is authorized for bringing out innovations in products, and services of that company.
2. Business ownership
A very highlighting difference between intrapreneur and entrepreneur concerns the ownership of the business. Entrepreneurs are the owner of their businesses. While intrapreneurs are employed under a company. Entrepreneurs receive public recognition and credit for the services they provide. Whereas intrapreneurs may get praised by their peers and bosses but receive no public recognition outside the organization.
3. Freedom of decision making
Another prominent difference between intrapreneur and entrepreneur comes down to the freedom of decision making. An entrepreneur enjoys the full freedom of decision making. They own the authority to take decisions according to their understanding and desire. But in the case of intrapreneurs, they need to consult with the administrative authority for getting the approval to implement their ideas.
In business terms, capital refers to the monetary resources required for the business running. Entrepreneur individuals need to raise capital all by themselves. If they do not own the required amount, they may need to borrow it from someone or take a bank loan. On the contrary, intrapreneurs get the leverage of getting readily available monetary resources. They do not need to raise funds by themselves. The organization under which an intrapreneur works provides him with all the monetary resources he needs.
Every business requires several business resources such as raw materials, business equipment, office room, and human resources. Alike the monetary resources, an entrepreneur ought to manage these business resources by themselves. On the flip side, an intrapreneur gets all the necessary resources readily available for their intended use. They again get all the necessary business resources from the company they are working for.
6. Financial risk
Financial risk is another key trait that sets intrapreneurship and entrepreneurship apart. An entrepreneur is liable for raising his or her capital as well as carrying risks and uncertainties befalls upon the business. Intrapreneurs do not have any such pressure of risking their asset. For them, their respected companies are going to bear all the risk if any financial fallout happen.
7. Freedom of profit-making
Freedom of profit-making is one of the fundamental motives of why people incline to become an entrepreneur. An entrepreneur relishes the opportunity of keeping the most possible profit in his own pocket. Intrapreneurs miss out on this point, as they get no part of what profits they generate for the company. They only receive a fixed salary previously agreed upon. This profit-making freedom is a motivation for entrepreneurs to step out of the box to make as much profit as possible. Intrapreneurship lacks this motivation.
8. Approach towards work
From the above point of freedom of profit-making, it is evidently fathomable that approach to entrepreneurial endeavor is fully intuitive. Entrepreneurs work with their hearts to achieve the highest possible profit. On the other hand, the job of the intrapreneur is their responsibility, they are bound to finish their assigned work within a stipulated time. Therefore, an intrapreneur’s approach towards their job is less intuitive and more restorative.
The motive of intrapreneur and entrepreneur also varies. An entrepreneur works to bring a new product or service to the market and struggles to successfully create a niche in the current market. On the contrary, the intrapreneurs do not work for bringing any new item in the market nor they struggle to create a new niche. Rather, they work to bring about a better change with creativity and innovation in existing products.
Which One Are You?
The fundamental differences between intrapreneurship and entrepreneurship are widely discussed in the above section. Now, ask yourself, which one is the fittest relating to your capacity. If you desperately desire to be the owner of your own business and decisions, then you perhaps have an entrepreneurial tendency. Conversely, if you feel like you work more productively under someone’s supervision then you are more like an intrapreneur person.
Again, if you dream to get rich by making a large number of profits within a short range of time, then you can jump to entrepreneurship. But in case, you do not possess enough assets to start your intended business, then entrepreneurship can turn out to be a bad choice for you. On the other hand, if you want to avoid the financial risk and already quite happy with a fixed salary, then you should go for intrapreneurial jobs.
In conclusion, after giving a thorough reading of the perks of intrapreneurship and entrepreneurship from this article, you can easily determine which one suits your potential qualities. Once you finally find out which one allures you as well as matches your desires, move on to that career without wasting time on thinking and procrastination.
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