Entrepreneurship versus intrapreneurship; two terms that are often confused with one another. However recently, a new term has been added to our business vocabulary and you just might have never encountered it before: Intrapreneurship. This article is going to define, differentiate them both as well as be able to provide similarities.
Before we compare; entrepreneurship versus intrapreneurship, let us start with the understanding of who is an entrepreneur? According to Investopedia, an entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. Entrepreneurs have a few of the following characteristics:
Another definition of entrepreneurship refers to the process of establishing a business entity, intending to get profit, as a return in the future. An enterprise or an established business is the end result of this process.
Entrepreneurship tests are available to test entrepreneurial abilities have been increasingly used to characterise entrepreneurs or people that have such characteristics. META Entrepreneurship Test is one of the ways to measure the entrepreneurial ability of an individual.
See more in detail regarding the META Entrepreneurship Test, a state-of-the-art psychometric test that identifies the entrepreneurial potential to help businesses nurture and retain their entrepreneurial talent.
Amongst the comparison of entrepreneurship versus intrapreneurship Entrepreneurs create wealth. But it takes time to get there. We all start in the same place, as students. There are 5 levels of the entrepreneurship process.
Moving aside from the comparison of entrepreneurship versus intrapreneurship, before you even start reading this section, be aware that as an entrepreneur, you will fail multiple times, ideas will not work, tests will fail. Take that as a learning process and learn from it to constantly make improvements to your business. Here are a few tips that might help to keep you going:
There are multiple programs and workshops that help entrepreneurs to improve their understanding of the entrepreneurial world. For example, to nurture entrepreneurs, there is NEXEA's Entrepreneurs Programme, Malaysia's exclusive peer network for top tech entrepreneurs to learn and grow together. During this programme, entrepreneurs are guided by some of the best startup mentors and investors.
You are able to solve your business problems with peer entrepreneurs who have probably experienced similar issues using systematic methods to solve issues together. Not just that but you will get guidance from real, experienced mentors that are also Angel Investors (they have done IPOs/ M&A and are Chief Executives levels only).
An ‘Intrapreneur’ is a term made for an individual responsible for innovation in a business. An intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur, however, has access to the resources and capabilities of an established company.
An intrapreneur is someone who’s filled with leadership qualities – innovative, driven and passionate.
The infographic below lists all the strengths of intrapreneurship from both the intrapreneur's perspective and the company’s perspective. It includes a very detailed mind map that correlates individual workers and the whole company.
These individuals are generally given autonomy to work on a project that may have a considerable impact on the company. In many instances, intrapreneurs within a company have evolved into entrepreneurs.
While comparing entrepreneurship versus intrapreneurship, they both possess different cultures of work ethics and idea execution. There are four characteristics of intrapreneurial culture:
According to Intrapreneurial Initiative, give your employees time to work on something they are interested in! By doing this, setting realistic goals and timelines, and acknowledging that there will be both failures and successes, you will succeed!
The important part is to constantly test new ideas at various stages of development rather than waiting until a new product or service has been entirely developed – this “pivoting” will allow for realistic evaluation of new projects along the path of development.
Entrepreneurship versus Intrapreneurship: The differences and similarities can be summarised in the short video below, dividing both into categories.
A few of the major differences in entrepreneurship versus intrapreneurship have to do with dependency, risk-taking, fundraising and orientation.
In terms of dependency, entrepreneurs as owners and establishers of the business, have full independence whereas in comparison to intrapreneurs, who work for entrepreneurs may not have as much liberty in decision making as entrepreneurs do.
Entrepreneurs are risk-takers and will be responsible to bear all the risk that the business goes through whereas an intrapreneur may not encounter as high a risk as entrepreneurs however business risk is never fully eliminated for both types.
The element of fundraising, entrepreneurs are responsible for raising their own funds for their means, could be through all methods, angel investors, crowdfunding, loans and so on. However, intrapreneurs are not responsible for raising funds.
An entrepreneur begins his journey by setting up his own business from scratch, his/her own business idea and models whereas an intrapreneur ends up working for other businesses and organisations.
To conclude entrepreneurship versus intrapreneurship, the infographic below gives us a visual comparison of the differences and striking resemblances between the entrepreneur and the intrapreneur. Entrepreneurship versus intrapreneurship may sound similar, but there are striking differences between the two as well as some similarities.