Are you confused between entrepreneur and intrapreneur? If yes, then you are not alone.
Entrepreneurship is about creating new businesses, whereas Intrapreneurship is about improving existing business processes. Both are equally important, but one requires a lot more focus.
Wondering why some people succeed at running a business while other people fail? The reason has to do with their approach to entrepreneurship. In other words, whether they're an entrepreneur or an intrapreneur.
Here are some additional details.
What is an Entrepreneur?
An entrepreneur is an individual who assumes the risks involved in starting a new enterprise. They may not know exactly what they're doing, but they've got a good idea of what they want to create and how they plan to market it. They must find a way to manufacture it themselves, package it, advertise and finally sell it. They must figure out how much capital they'll require to start their own company and how to obtain financing. Once they've done all these things, they must then determine where they should locate their company, how many workers they will require, and whether they should hire full-timers or part-timers. After setting everything up, they must keep running the company every single working hour, ensuring that it produces income.
The French word for "enterprise" means "to undertake," which is similar to the English word "entrepreneurship." Entrepreneurs today create new companies that offer goods and services to consumers.
The entrepreneur is responsible not only for creating the product, but also for marketing it and selling it. They may receive a commission based on how much money they make, but if the product doesn’t sell well, they could end up losing money instead of making any.
An excellent entrepreneur takes calculated chances; he doesn't hesitate to take them.
What is an Intrapreneur?
An intrapreneur is defined as an individual who works inside the organisation, innovating, creating new value and improving existing ones. He or she is someone who believes in continuous improvement and strives for perfection. They look for ways to make things better and are always looking for new solutions.
The word "intrapreneur" is derived from the French word 'interne' meaning "within". In English the term is used to describe people who take responsibility for improving the efficiency of organisations.
An intrapreneur is an employee, manager, or leader of an organisation who helps the organisation reach its goals and objectives by developing new products, service, and processes, and innovating.
Intrapreneurship is a growing discipline that recognise the potential value of employees who are willing to challenge existing practices, innovate new methods of doing things, and lead their peers toward success.
A recent Gallup survey found that almost half of all employees consider themselves "intrapreneurs." But there is still some controversy surrounding the term "intrapreneur," so some people say you shouldn't use it at all.
Shared Traits Between Entrepreneur and Intrapreneur
Both intrapreneurship and entrepreneurship share common goals and methods, but they also differ from one another.
According to research conducted by Harvard Business Review, successful companies tend to include aspects of both entrepreneurship and intrapreneurship within their own organisations.
The HBR study concluded that successful intrapreneurial teams exhibit these key traits: they're independent, creative, and innovative; they're open to new ideas; and they're committed to their customers. Additionally, they demonstrate five behaviours: they initiate projects; they listen for suggestions from others; they ask questions to learn more; they share knowledge with colleagues; and they adapt their processes accordingly.
Entrepreneurs, meanwhile, are often driven by a desire to make money. They are willing to take risks, and they embrace failure. They are also highly adaptable. They are open minded, and they challenge themselves to find new ways of doing things.
It’s important for companies to recognise that both Entrepreneurs and Intrapreneurs have a strong desire to be innovative.
Differences Between Entrepreneur and Intrapreneur
The biggest difference between entrepreneurs and intrapreneurs is autonomy. A true entrepreneur has total control over his or her career. He or she decides what projects to pursue, how much risk to take, and where to focus his or her energy. On the other hand, an intrapreneur has limited control over his or her life. His or her boss decides what projects to pursue and how much risk to take.
Another difference between the two is risk. As an entrepreneur, you take financial risk. You can potentially lose money, even if you succeed. But you don't face the same level of personal risk as someone working inside an established organisation. For example, if you're an intrapreneur, you could be fired for failing to meet expectations. Or, if you're a CEO, you might be replaced if you fail to achieve your goals. On the flip side, if you're an entrepreneur, you can go bankrupt.
Furthermore, entrepreneurs tend to reap greater rewards than intrapreneurs. An entrepreneur may see his/her company go public, whereas an intrapreneur typically has a smaller chance of seeing his/her company become a big success story.
In reality, intrapreneurs often face many of the same challenges as entrepreneurs do. For example, they must find funding, build teams, manage risks, and deal with politics.
Both entrepreneurship and intrapreneurship are important skills to learn. You shouldn't view either as something you chose to pursue or avoid. Rather, they're part of a larger set of skills that help you thrive in life.
Should I Be An Entrepreneur or Intrapreneur?
If you are looking to start a business, deciding whether to pursue entrepreneurship or intrapreneurship could be one of the most difficult decisions you'll ever face. There are many pros and cons to each path, and choosing one over the other may depend on what type of person you are.
Being an entrepreneur means taking control of your life and creating something from scratch. You have complete control over everything, including your schedule, income potential, and career growth. As an entrepreneur, you must worry about marketing, finances, customer support, sales, and much more.
On the other hand, becoming an intrapreneur gives you the opportunity to help shape the direction of a larger organisation. You don't necessarily need to take charge of every aspect of the company; instead, you focus on solving problems and making improvements. In addition to helping others succeed, you may also gain access to resources that you wouldn't otherwise have access to.
While both options have their benefits, many people choose one over the other because they don't feel that they have enough experience in either field.
There really isn't one right way to go about it; both paths have their pros and cons, and ultimately, it comes down to which option fits you best.
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