Difference Between Entrepreneur and Intrapreneur

Innovation drives the business world today. Entrepreneurs and intrapreneurs play key roles. Entrepreneurs take risks to start new businesses and explore new markets with fresh ideas. Intrapreneurs create new products or services inside established companies, using the company’s resources. Both drive progress, but they work in different ways and environments.

Understanding the difference between an entrepreneur and an intrapreneur is important for anyone interested in business and innovation. 

In this article, we will explore the similarities and differences between entrepreneurs and intrapreneurs, how these roles contribute to growth, and the challenges they face.

What Is An Entrepreneur?

An entrepreneur starts and runs a business. They take financial risks to earn a profit. Entrepreneurs spot gaps in the market and create products or services to meet those needs. They often work long hours, make key decisions, and lead teams to bring their ideas to life.

Entrepreneurs drive economic growth. They create jobs, encourage competition, and push technology forward. They also shape industries by introducing new ways of doing business.

Example & Business Case:

• Global: Elon Musk founded Tesla and SpaceX. He saw the need for electric cars and reusable rockets. He used innovation and risk-taking to build successful businesses that changed industries.
• South Africa: Vusi Thembekwayo invests in start-ups and businesses. He uses innovative ideas and calculated risks to grow companies and impact the economy positively.

Read on How To Become An Entrepreneur

What Is an Intrapreneur?

An intrapreneur works inside a company but acts like an entrepreneur. They develop new products, services, or processes using the company’s resources. They take fewer financial risks than entrepreneurs but must align their ideas with the company’s goals.

Intrapreneurs help companies stay competitive. They improve processes, launch new products, and find innovative solutions. They often lead teams, persuade management, and navigate company structures to make their ideas work.

Example & Business Case:

South Africa: In Naspers, intrapreneurs develop digital platforms and technology innovations. Their projects help the company grow and remain a leader in its industry.

Global: Art Fry at 3M created the Post-it Note. He used company resources to develop the idea, turning it into a hugely successful product that changed office work

Types Of Entrepreneurs

Entrepreneurship has many paths, each with its own challenges and rewards. Knowing the types can help you choose the right path. Here are some key types of entrepreneurs that highlight the many opportunities in this exciting field:

• Small Business Entrepreneurs: They start local businesses that serve their communities. They often have limited resources and aim for steady growth.
• Scalable Start-up Entrepreneurs: They aim to grow fast and expand quickly. They often seek funding to transform markets with new ideas.
• Social Entrepreneurs: They focus on solving social problems while making a profit. They put social impact before financial gain.
• Innovative Entrepreneurs: They create completely new products or services. They push boundaries and bring groundbreaking ideas to the market.
• Hustler Entrepreneurs: They are hardworking and determined. They start small and grow their business through persistence and effort.

Read more on Kinds of Entrepreneurs: A Guide for Modern Business

Types Of Intrapreneurs

Intrapreneurship suits people who think like entrepreneurs but prefer to innovate within a company. It allows them to take initiative and create new solutions without starting their own business. Intrapreneurs help companies stay competitive and drive growth from within.

Here are three main types of intrapreneurs, each with unique strengths:

• Creator: Creators come up with new ideas. They like working alone and can move quickly from one project to another. They focus on big-picture growth and innovation.
• Doer: Doers focus on getting things done. They act quickly, question authority when needed, and thrive in flexible environments. They make sure tasks are completed efficiently.
• Implementer: Implementers excel under pressure. They plan well, motivate teams, and turn ideas into action. They ensure projects finish on time and succeed.

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Differences Between Entrepreneurs And Intrapreneurs

Entrepreneurs and intrapreneurs are both creative, but they work differently. Entrepreneurs start their own businesses and take all risks and rewards. They can earn high profits but face uncertainty. Intrapreneurs work inside established companies. They use the company’s resources to run new projects. They enjoy job security and shared risk, but their projects must match company goals.

Let’s take a look at the table below that highlights the differences between an intrapreneur and an entrepreneur:

Basis	Entrepreneur	Intrapreneur
Meaning	Creates something new with a novel idea.	Uses entrepreneurial skills inside a company.
Motive	Drives change and innovation.	Improves business growth and processes.
Nature	Highly creative and innovative.	Creative, but usually less risky.
Risk Factor	Takes significant risks.	Takes controlled and smaller risks.
Goals	Seeks long-term financial success.	Focuses on career growth and milestones.
Competition	Faces low competition at start.	Faces competition within the company and industry.
Position	Founder and business leader.	Employee in an established organisation.
Approach	Uses original and innovative methods.	Uses entrepreneurial skills within company rules.

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Similarities Between Entrepreneurs And Intrapreneurs

Entrepreneurs and intrapreneurs work in different settings, but they share many key qualities. These traits show that both have a similar mindset. Knowing these similarities helps people who want to move from one role to the other.

Here’s a look at what they have in common:

• Creative Thinking: Both come up with new ideas. They always look for ways to improve products or services and enjoy solving problems.
• Goal-focused: Both work hard to reach their goals. They stay focused on their targets and aim for strong results.
• Leadership Skills: Both need good leadership skills. They guide teams, share their vision, and manage tasks effectively.
• Adaptability: Both stay flexible and ready to change. They adjust plans when markets shift or new challenges arise.
• Creativity and Innovation: Both rely on creativity. They drive innovation and look for better ways to do things.
• Persistence: Both stay determined. They work long hours and keep going despite challenges.
• Confidence and Passion: Both believe in their work and feel passionate about it. Their enthusiasm helps them stay motivated.
• Risk-Taking: Both take risks. Entrepreneurs face financial risks, while intrapreneurs take creative risks within a company.

Advantages And Disadvantages Of Entrepreneurship

Entrepreneurship brings both great opportunities and big challenges. It is exciting but also demanding. If you want to be your own boss or turn your ideas into reality, it’s important to know what this path involves. Here’s a simple look at the pros and cons of being an entrepreneur.

Advantages of Entrepreneurship

Entrepreneurship offers many benefits that make it an appealing career choice. Here are some key advantages:

• Independence and Control: Entrepreneurs make their own decisions and manage their businesses their way. They enjoy full creative and operational freedom.
• Financial Rewards: A successful business can bring high profits and personal wealth.
• Creative Freedom: Entrepreneurs can turn their ideas into reality without strict corporate rules.
• Pursuit of Passion: They work on projects they care about, which makes their work more meaningful.
• Positive Impact: Many entrepreneurs help their communities or support social causes through their businesses.

Disadvantages of Entrepreneurship

Entrepreneurship also comes with risks and challenges that can be difficult to manage. Here are some common disadvantages:

• High Risk: Running a business involves financial risk and the chance of failure.
• Work-Life Balance: Entrepreneurs often work long hours, which can affect their personal lives.
• Limited Resources: It can be hard to find enough funding or support to grow a start-up.
• Full Responsibility: Entrepreneurs handle all business outcomes, including risks and losses.
• Stressful Demands: The early stages of business are stressful and require strong commitment.

Read on Accelerate Your Career with an MBA in Innovation and Entrepreneurship 

Advantages And Disadvantages Of Intrapreneurship

Intrapreneurship offers unique opportunities and challenges within a company. Intrapreneurs use company resources and support to create new ideas, but face some limits compared to entrepreneurs. Knowing these pros and cons can help you decide if intrapreneurship suits you.

Advantages of Intrapreneurship

Intrapreneurship provides several benefits that make it appealing to employees with innovative ideas. Here are some key advantages:

• Access to Resources: Intrapreneurs use the company’s funds and staff to develop and launch ideas. This support helps them innovate effectively.
• Stability: They earn a regular salary and face less financial risk, giving them more security than entrepreneurs.
• Supportive Environment: They work with experienced teams and get help from different departments, making it easier to turn ideas into real projects.

Disadvantages of Intrapreneurship

Intrapreneurship also has challenges that can limit creativity and independence. Here are some common disadvantages:

• Limited Control: Intrapreneurs need management approval for their projects, which reduces their freedom to make decisions.
• Corporate Constraints: Company rules and culture can slow innovation and limit creative expression.
• Recognition Challenges: Intrapreneurs may not get full credit for their work, which can affect their motivation and career progress.

Choosing Between an Entrepreneur and an Intrapreneur

Your choice between becoming an entrepreneur or an intrapreneur depends on your goals, risk level, and work style.

Entrepreneurs start their own businesses and take financial risks to turn new ideas into reality. If you want independence, high earning potential, and don’t mind uncertainty, entrepreneurship may suit you. But it also means long hours, full responsibility, and the chance of failure.

Intrapreneurs innovate within existing companies. They use company resources to create new products or services. If you prefer stability, lower financial risk, and teamwork in a structured environment, intrapreneurship could be a better fit. However, you may face company rules and less personal recognition.

Both paths need creativity, leadership, and persistence. When looking into the landscape of intrapreneur vs entrepreneur, it is the level of risk and the environment where you choose to innovate.

Know Startups and Tech Entrepreneurship: Regenesys MBA Unique Approach

Conclusion

Entrepreneurs and intrapreneurs both drive innovation but in different ways. Entrepreneurs start their own businesses and take financial risks to bring ideas to life. Intrapreneurs work within companies and use company resources to create new ideas or improve existing ones.

Understanding these differences helps you choose the path that suits your goals. You can enjoy the freedom of running your own business or the stability of innovating within a company. Both roles offer great opportunities for creativity and leadership.

At Regenesys Business School, you can develop the skills needed to grow as an entrepreneur or intrapreneur. Our MBA and BBA programmes give you practical knowledge and real-world tools to succeed – whether you want to start a venture or drive innovation in your organisation. 

Explore how Regenesys can support your learning journey and help you achieve lasting success.

Difference Between Entrepreneur and Intrapreneur – FAQ