5 Key Differences between and entrepreneur and intrapreneur

Difference between entrepreneur and intrapreneur: An intrapreneur is a great model to have the best mix between entrepreneurial mindset without taking many risks. The downside of entrepreneurship is life altering risks that can have high impact. The intrapreneurial model allows you to work within a company and use its resources to work on your idea. However, you have more independence as an entrepreneur compared to working within a company. If you have a great idea but don’t want to take the risks as a founder, this intrapreneur route is the best way to move forward. In this article, we will talk about the differences between entrepreneur and intrapreneur.

What is an intrapreneur?

The same principles motivate both an intrapreneur and an entrepreneur. However, the main difference is that an intrapreneur works within a company. The main purpose of intrapreneurship is to help innovation within a company. It helps the company to come up with new ideas. And if you have an entrepreneurial mindset and want to work on an idea without taking risks – this can be the perfect opportunity. An intrapreneur is an individual within a larger organization who behaves like an entrepreneur. They have the same characteristics as an entrepreneur such as innovation, creativity, and risk-taking ability.

Intrapreneur meaning

Unlike entrepreneurs who are independent, intrapreneurs operate within a company. Their idea has to benefit existing customer profile and create a revenue impact for the company. If you have such an idea, the companies support with a certain amount of funding and allowing you to work a % of your time on the business idea. Once you’re able to prove traction to this idea, you will be allowed to increase time on this. Eventually, you might be able to either lead this new division or create an offshoot venture. However, since the company bears your risks, your ownership will be limited.

Ref: https://en.wikipedia.org/wiki/Intrapreneurship

Difference between entrepreneur and intrapreneur

Both entrepreneur and intrapreneur need similar skills. There are slight differences in the way they operate and make finer decisions. However, the bedrock of their qualities thrives under innovation, future thinking and the ability to take risks. Some subtle differences between entrepreneur and intrapreneur are as below. You might also find the difference between businessman and entrepreneur interesting on a similar note.

Resources

An intrapreneur leverages resources already existing within a company for a specific cause. An entrepreneur however has minimal resources at disposal. You will be doing most of the initial ideation, product development and marketing as an owner.

Autonomy

An entrepreneur has more autonomy because his/her decisions aren’t often challenged. It is almost as if the entrepreneur has a blank canvas to decide and define their ideas. An intrapreneur however needs to create and foster an idea within the confines of a company’s business model or suite of products depending on the need.

Financial Security

The number one reason why startups fail is lack of funding. This is indeed the biggest difference in the ability of an entrepreneur to take risks. For an entrepreneur, the risk is personal — they don’t have the security or backup option of a salary. In other words, the cost of failure for an entrepreneur is much higher. An intrapreneur gets paid even if the idea fails.

Safety Net and Persistence

Entrepreneurship normally is connected to persistence and perseverance. An intrapreneur might have to take the fail fast fail cheap approach if a company is focused on the bottom line. However, the intrapreneur also enjoys a fair safety net which allows them to think beyond limitations and short term gains which can be a distraction for an entrepreneur and their idea.

Stake and ownership

This perhaps is the biggest difference between entrepreneurs and intrapreneurs. An entrepreneur enjoys a major share of the company and enjoys the fruits of their hard work. However, an intrapreneur ultimately works for the company. They might get a small share of their idea and its execution. However, ownership will still be distributed to the board or senior management of the company. We talk about this more in the types of funding article and the share of equity for investment in a startup.

This is a non-exhaustive list of differences — entrepreneur vs intrapreneur. I’m sure there are plenty of others we can rate. But these differences usually create a marked difference in the approach of both parties to the goal of creating a startup.

Similarities between entrepreneur and intrapreneur

Differences without similarities are meaningless. As much as these two terms are different and achieve slightly different purposes, some of the common factors between an entrepreneur and an intrapreneur are:

1. Innovation: Both parties are trying to create something new from scratch. The biggest benefit of entrepreneurship or new ideas is bringing new thoughts into results and ultimately adding value to the end-user.
2. Learning ability: The key to a startup is in its ability to make mistakes quickly and learn from them. The learning ability forms a pivotal part of being a startup founder whether it is in the form of a company or an independent business owner
3. Ownership: The buck stops at the founder whether it is an entrepreneur or intrapreneur. They own and assume full responsibility for the idea and its results
4. Flexibility: An imperative part of innovation is the ability to learn and adapt to market requirements. You’ll need to be flexible to adapt and change as per the demands of the market.
5. Understanding the market: Ultimately everything is about adding value to the end-user. The premise for innovation or entrepreneurship is in the usability of a product/service. Both intrapreneurs and entrepreneurs express this skill set to be successful in their approach.

Both fields are immensely powerful in being able to make a difference to the end-user and the business as a whole. If you have an opportunity to select either — it can be a passionate endeavour. Sure, it has its risks — but can be a huge amount of fun.

Characteristics of an intrapreneur

The characteristics of an intrapreneur are:

1. Innovative mindset: Whether it is entrepreneurship or intrapreneurship, it all starts from innovation. You will be known for your ability to come up with ideas and solve problems creatively.
2. Passion and motivation: This is common for both entrepreneurs and intrapreneurs. Unless you’re passionate about the idea and are convinced about its potential – you can’t proceed.
3. Risk-taking propensity: Intrapreneurs are comfortable taking calculated risks and are not afraid of failure. They understand that innovation often involves some level of risk and are willing to step outside their comfort zone to pursue new opportunities.
4. Proactiveness and autonomy: Intrapreneurs are proactive self-starters who take initiative and are not solely reliant on instructions from others. They have a sense of ownership over their projects and are capable of working independently.
5. Problem-solving skills: Intrapreneurs possess excellent problem-solving skills and can identify issues and opportunities within their organization. They are resourceful in finding solutions and are persistent in overcoming obstacles.
6. Adaptability and resilience: Intrapreneurs are adaptable and resilient, able to navigate through uncertainty and changing circumstances. They are open to feedback and learning from failures, using setbacks as opportunities for growth.
7. Collaboration and networking: Intrapreneurs understand the value of collaboration and are skilled at building relationships and working effectively with diverse teams. They leverage their networks to gather support, resources, and insights to drive their initiatives forward.
8. Results-oriented mindset: Intrapreneurs are driven by results and outcomes. They are focused on achieving tangible goals and are willing to put in the necessary effort and dedication to make their projects successful.

These characteristics enable intrapreneurs to bring an entrepreneurial mindset and approach to their work within an existing organization, driving innovation, growth, and positive change. These are similar to the qualities of an entrepreneur

How to become an intrapreneur

These are the top bullet points on becoming an intrepreneur. The best way is to explore options within your workplace. Ideally, these opportunities lie within the innovation space with a generous R&D budget. Make sure that you express your presence in these areas. Identify your stakeholders and showcase the following characteristics in your journey to becoming an intrepreneur.

• Develop an entrepreneurial mindset
• Understand your organization’s landscape
• Propose new ideas and solutions
• Build a strong network
• Take ownership and initiative
• Seek mentorship and guidance
• Embrace continuous learning
• Overcome challenges and persevere
• Communicate and influence effectively
• Measure and showcase impact