Discover the key differences between intrapreneurs and entrepreneurs and learn which path suits your innovation journey best. Here is a complete guide for businesses to choosing a path of innovation, with actionable insights for making a lasting impact.
Over the years, the number of words related to the field of entrepreneurship has grown a lot. There are many terms, such as Businessman, Entrepreneur, and Intrapreneur. An Entrepreneur is a person who has a unique idea to start something new and has the passion to bring change to the world.
An Intrapreneur is someone who works in a company or business that was started by someone else. An Intrapreneur uses entrepreneurial skills while working in an already established company.
While they share similarities, they also differ significantly in their roles, responsibilities, and approaches. Understanding these distinctions is essential for individuals deciding on their career paths and for organisations aiming to foster innovation.
Who is an entrepreneur?
An entrepreneur is a person who sees an opportunity and takes action to turn it into a successful business. Entrepreneurs are usually motivated by the desire to create something new, whether it is a product, service, or business model. Their work requires creativity, the willingness to take risks, and the ability to handle challenges.
Entrepreneurs are often considered pioneers in their industries. They work in a fast-changing environment, dealing with uncertainties and building businesses from scratch. The businesses they create are often called startups, which either change existing markets or create completely new ones.
Key characteristics of entrepreneurs:
- Innovative thinking: Entrepreneurs come up with fresh and unique ideas, often solving problems that have not been tackled before.
- Risk-taking: They take significant risks, including financial and personal, to achieve their goals.
- Leadership: Entrepreneurs lead teams by inspiring and guiding them toward business success.
- Market creation: By introducing new products or services, they open up new market opportunities.
- Long-term focus: Their goals are usually based on long-term success and business growth.
Who is an intrapreneur?
An intrapreneur is a person who works in an existing company but applies an entrepreneurial approach to their job. Unlike entrepreneurs, intrapreneurs do not own the business they work for. Instead, they help the company grow by identifying new opportunities, developing fresh ideas, and making improvements that benefit the organisation.
Intrapreneurs often work in special teams or departments, sometimes called innovation labs or think tanks, where they are encouraged to test and explore new ideas. Their efforts help companies stay competitive, improve efficiency, and adapt to changes in the market.
Key characteristics of intrapreneurs:
- Innovation within limits: Intrapreneurs bring new ideas and improvements while working within an already established business.
- Reduced risk: Unlike entrepreneurs, they do not take on financial risks, as the company provides resources and covers costs.
- Team collaboration: They work closely with different teams and departments to bring their ideas to life.
- Goal-oriented: Their work is focused on the company’s objectives, such as increasing profits, improving processes, or launching new products.
- Personal growth: Successful intrapreneurs often gain career growth and recognition within their organisations.
Differences between entrepreneurs and intrapreneurs
| Basis | Entrepreneur | Intrapreneur |
| Definition | An entrepreneur is an individual who starts and owns their own business. | An intrapreneur is an employee who drives innovation within an existing organisation. |
| Ownership | Entrepreneurs own the businesses they establish. | Intrapreneurs do not own the companies they work for. |
| Risk | Assumes all financial and operational risks. | Faces reduced risks, as the organisation absorbs costs and risks. |
| Goals | Focuses on long-term growth and profitability. | Focuses on organisational goals such as revenue growth or process improvement. |
| Autonomy | Has complete autonomy in decision-making. | Operates within the organisational framework and requires approval for major decisions. |
| Rewards | Retains all financial and reputational benefits of success. | Receives recognition and career advancement within the organisation. |
| Approach | Introduces entirely new products, services, or markets. | Innovates within the scope of existing products, services, or processes. |
| Team structure | Builds a team from scratch, often recruiting diverse talent. | Works within an established organisational structure. |
Similarities between entrepreneurs and intrapreneurs
Even though entrepreneurs and intrapreneurs have different roles, they share many skills and qualities. Both need an entrepreneurial way of thinking, which includes creativity, leadership, and a strong focus on innovation.
- Problem-solving: Both find challenges and come up with creative solutions.
- Adaptability: They work well in changing environments and are open to new ideas.
- Leadership: Entrepreneurs and intrapreneurs often guide teams and motivate others.
- Continuous learning: Both keep learning new skills and knowledge to stay successful in their fields.
Final thoughts
Entrepreneurs and intrapreneurs both play important roles in bringing new ideas and helping the economy grow. Entrepreneurs start new businesses and create new markets, while intrapreneurs introduce fresh ideas and improvements in existing companies.
By understanding their differences and similarities, people can make better choices about their careers, and companies can create a workplace that supports both entrepreneurship and intrapreneurship. Whether someone chooses to be an entrepreneur or an intrapreneur, both paths require creativity, leadership, and a strong desire to keep learning and improving.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
