In the world of business, the terms ‘entrepreneur’ and ‘intrapreneur are mostly used interchangeably, yet they represent different roles with their distinct responsibilities and challenges. Both entrepreneurs and intrapreneurs are innovators and problem solvers, but they operate in different business environments and have different levels of risk, ownership, and freedom.
Who Is an Entrepreneur?
An entrepreneur is a person who creates and manages a business, taking all the risks and rewards. Entrepreneurs build something from the ground up, be it products or services. They are responsible for turning deals into reality while they are using their own resources or seeking investment to fund their business.
In the early phases, entrepreneurs can take on multiple roles. They can act as CEO, marketer, and customer service representative. It is their way of building the foundation until they can hire an entire team. They are independent and comfortable with uncertainty, as they face financial and personal risks. When the business succeeds, they stand to benefit directly from profits and potentially grow their business.
Who Is an Intrapreneur?
An intrapreneur is an employee of a company who possesses certain levels of entrepreneurial skills and uses them to create products or opportunities. While the actual entrepreneurs are independent individuals who start their own companies and bear the costs, intrapreneurs work within established companies and have access to resources and support without the financial risks. They bring innovative thinking to their roles, coming up with new ideas that benefit the company, mostly creating products or services that drive growth.
Intrapreneurs do not own the business, products, or services they develop; if a project fails, they are not financially impacted as entrepreneurs. Instead, the company that they are working for bears the risks, though successful intrapreneurs may receive recognition, bonuses, or even promotions.
Although there are considerable differences between an entrepreneur and an intrapreneur, there are also quite a few similarities. Both of these professionals embrace the entrepreneurial mindset. They are constantly thinking of ways to solve real-world problems through new or improved products or services.
Shared Skills
While there are certainly exceptions, both entrepreneurs and intrapreneurs may have the following character traits and skills:
- Creativity
- Out-of-the-box thinking
- Desire to improve products or services and solve real-world problems
- Leadership abilities
- Adaptability in an ever-changing business environment
- Passion for continuous, lifelong learning
Some professionals who work as successful intrapreneurs may later decide to become entrepreneurs. Their real-world experience as intrapreneurs can serve them well as they adjust to developing and managing their own companies.
Advantages and Disadvantages of Being an Entrepreneur or an Intrapreneur
Before you decide to pursue an entrepreneurship degree, take a look at some of the potential pros and cons of intrapreneurship and entrepreneurship. Remember that every career path has its own pros and cons; there is no perfect career without any potential drawbacks at all.
Potential Advantages of Entrepreneurship
- Be your own boss
- Determine the direction of your own company
- Enjoy decision-making freedom
- Ability to follow your passions
- Reap the financial rewards of success
- Ability to impact others in positive ways, such as partnering with charities
Potential Disadvantages of Entrepreneurship
Autonomy over your business equals complete responsibility for the successes and failures.
- Assume all risks of business problems, including financial risks
- Can be stressful, especially in the beginning stages and while scaling
- Often requires long working hours
- Difficulty separating business issues and personal time
Potential Advantage of Intrapreneurship
- Little to no financial risk for new ideas/ventures
- May have a greater degree of autonomy than other employees
- Successful intrapreneurship can lead to career advancement
- Personal satisfaction that comes from contributing to the company’s success
- Potential to pursue personal passions/interests, pending company approval
Potential Disadvantages of Intrapreneurship
- You won’t be your own boss
- Lack of autonomy over projects
- Less decision-making authority over projects
- Less financial reward for successful ventures
- May not receive full attribution for successful projects
- Career advancement may be stalled if new initiatives are not successful
Lastly, the decision between being an entrepreneur and an intrapreneur depends upon the goals, the attitude to risk, and the desired control. Entrepreneurs have complete autonomy over their businesses but have the responsibility of business finance and the power to make financial decisions as well. Intrapreneurs are individual workers who can be creative using the resources of an established business that they work for. However, both positions are significant and provide opportunities in the field related to the specific goal of every particular person.
Learn the key distinctions between starting your own business and innovating within an existing company. Read More
