Entrepreneur Vs Intrapreneur
Entrepreneur Vs Intrapreneur
Entrepreneur Vs Intrapreneur
Veronica MAIER2
Introduction
Why are entrepreneurs and intrapreneurs suddenly more important today
than before? An explanation to this question would be that the world is changing
nowadays more rapidly under the influence of new technologies. The increasing
competition hinders our work. It does not suffice anymore to stand before our
competitors simply driven by our will of competing; we have to bring something
new to the market. Entrepreneurs and intrapreneurs play a decisive role as they
help the company (newly established or existing) to engage in new business and
enter new markets.
The concept of entrepreneurship is seen as the process of uncovering and
developing an opportunity to create value through innovation and seizing that
opportunity without regard to either resources (human and capital) or the location
of the entrepreneur in a new or existing company (Churchill, 1992).
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ENTREPRENEURSHIP
Advantages
Disadvantages
You are your own boss - independency
Money pressure giving up on the
security of a regular paycheck
The income increases
After seeing the pros and the cons of each concept we think that it is useful
to see also the similarities and differences between these two concepts. Morris &
Kuratko (2002) are of the opinion that the literature is sometimes confusing in
underlining what exactly makes an entrepreneur different from an intrapreneur and
what they have in common. This is why they point out a serious a similarities and
differences:
Similarities
Both involve opportunity recognition
and definition.
Both require a unique business concept
that takes the form of a product, process,
or service.
Both are driven by an individual
champion who works with a team to
bring the concept to fruition.
Both require that the entrepreneur be
able to balance vision with managerial
skill, passion with pragmatism, and
proactiveness with patience.
Both involve concepts that are most
vulnerable in the formative stage, and
that require adaptation over time.
Both entail a window of opportunity
within which the concept can be successfully capitalized upon.
Both are predicated on value creation
and accountability to a customer.
Both entail risk and require risk management strategies.
Both require the entrepreneur to develop creative strategies for leveraging resources.
Both involve significant ambiguity.
Both require harvesting strategies.
Differences
In start-up entrepreneurship, the entrepreneur takes the risk in intrapreneurship and
the company takes the risk other than career-related risk.
In start-up the individual entrepreneur
owns the concept and business in
intrapreneurship; the company typically
owns the concept and intellectual rights
with the individual entrepreneur having
little or no equity in the venture at all.
In a start-up potential rewards for the individual entrepreneur are theoretically unlimited where in intrapreneurship an organizational structure is in place to limit
rewards/compensation to the entrepreneur/employee.
In a start-up venture, one strategic gaffe
could
mean
instant
failure;
in
intrapreneurship the organization has
more flexibility for management errors.
In a start-up the entrepreneur is subject or
more susceptible to outside influences; in
intrapreneurship the organization is more
insulated from outside forces or influence.
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