These two words have actually grown to cause a lot of controversy in the business world today. While some constantly wonder which of these suit them more appropriately, others do not even know what these words mean.
This article will clarify the differences between these two words as a matter of necessity because they sound and pose an object of confusion for many, in subsequent articles we would treat thoroughly other aspects of this topic. As always we must first analyze the meanings of these words.
According to management consultants GIFFORD AND ELIZABETH PINCHOT in their book “ Intrapreneuring: why you don’t have to leave the Corporation to be an entrepreneur” Intrapreneurs was defined to mean “dreamers who do, those who take hands-on responsibility for creating innovations of any kind within a business.”
Intrapreneurship is very often referred to as the entrepreneurship within an organization; which implies that new initiatives, creativity, and dynamism that augment organizational competence are intrapreneurship. It is, in fact, a matter of necessity that an intrapreneur can do the job of an entrepreneur. Which finally brings us to the description of who an entrepreneur is.
An entrepreneur is a person who sets up his own business taking a considerable amount of risk to own and operate the business with the aim of earning returns and rewards, from that business. Both of these categories of people must have certain qualities such as creativity, insight, good leadership abilities, adaptability and a good knowledge of the market in which their business thrives. See key differences for more insight.
However, in this article we would be discussing their differences and not their similarities.
Below are the major differences between them:
- Risk bearing: Unlike the intrapreneur, the entrepreneur bears all risks pertaining to the business, while the company bears the risks in the case of the intrapreneur. When profit or loss is made in an organization it directly affects the entrepreneur but it is borne by the company in the intrapreneur’s case. Intrapreneurs do not have the same level of authority and freedom as the entrepreneur, due to this it is only expected that the risk is borne on this same level.
- Raising capital and resources: As we all know, in our country Nigeria the greatest challenge faced by any entrepreneur is how to raise capital. So there a lot of people with awesome ideas but no money to fund it. One difference that I consider and advantage as well is access to the resources of the organization.
- Decision making: Every intrapreneur has a boss, therefore, cannot make decisions independent of this boss. Most organizations seeking to evolve now make do with Intrapreneurs. However, the owners of these bodies would not relinquish the power of decision making to these very important employees of theirs. Entrepreneurs, on the other hand, own businesses and can make decisions by themselves and make consultations at will. Decision making is at the crux of management of any business and must the handled delicately. The ideas of the intrapreneur cannot be expressly executed, it must first be endorsed by the organization.
- Job security: The job of the entrepreneur is secure being that he owns the business he works for and has no superior while the intrapreneur has a superior and can be suspended or even relieved of his appointment if seen necessary by his superiors.
- Designate roles: Their roles differ in the sense that while the entrepreneur plays majorly a supervisory role in the case of a big business, he may have to do almost everything alone when it is a small business, from the marketing, brainstorming, Innovation, packaging to downright selling. Showing that he does not have a designated role at his business, it can be anything depending on choice or necessity. The intrapreneur, on the other hand, has to deal with his task as assigned by the organization. His or her job is majorly to apply innovation into the products, services and different projects and in some cases redesigning and advancement.
- Payment structure: The payment structure for these categories of people is different. Whilst an intrapreneur is an employee and is placed on salary, the entrepreneur is a boss of his own and would have the leverage of structuring his income. Some organizations give rewards to their intrapreneurs based on the success of a project but this happens on rear occasions and is left to the discretion of the organization.
In the last few decades, there has been an increased demand for innovation. The market as we know has become almost twice as competitive, where only creative minds with the ability to evolve remain relevant. Therefore our big old organizations need new minds to fuel the flames of their glory in the market. However, some of these new minds venture off on their own and start businesses making entrepreneurs of themselves while others are employed by organizations and made to do the brain work of the entrepreneur.
Bothering on the question which you best fit into? In all honesty, I don’t really know, but what I do know is that you need resources to start off on your own and you need skills laced with top-notch work ethics to be employed as an intrapreneur. Whether intrapreneurship or entrepreneurship, differences or similarities, do something today!!! Get informed, learn a skill or build your portfolio; it would pay off eventually. Check out some of our articles to see businesses you can start with very little capital and what you can get involved in during this pandemic.
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