Entrepreneurship is the practice of embarking on a new business or reviving an existing business by pooling together a bunch of resources, in order to exploit new found opportunities.

What is Intrapreneurship?: Intrapreneurship is the practice of entrepreneurship by employees within an organization.

Difference between an entrepreneur and an intrapreneur:
An entrepreneur takes substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration, which is based on the financial success of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business.

Example of entrepreneurship: A classic case of entrepreneur is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.

Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk and creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to take calculated risk and to accept failure as a learning point. An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the organization. Intrapreneurship is a novel way of making organizations more profitable where imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves and improve performance.

In a recent study, researchers compared the elements related to entrepreneurial and intrapreneurial activity. The study found that among the 32,000 subjects who participated in it, five percent were engaged in the initial stages of a business start-up, either on their own or within an organization. The study also found that human capital such as education and experience is connected more with entrepreneurship than with intrapreneurship. Another observation was that intraptreneurial startups were inclined to concentrate more on business-to-business products while entrepreneurial startups were inclined towards consumer sales.

Another important factor that led to the choice between entrepreneurship and intrapreneurship was age. The study found that people who launched their own companies were in their 30s and 40s. People from older and younger age groups were risk averse or felt they have no opportunities, which makes them the ideal candidates if an organization is on the look out for employees with new ideas that can be pursued.

Entrepreneurship appeals to people who possess natural traits that find start ups arousing their interest. Intrapreneurs appear to be those who generally would not like to get entangled in start ups but are tempted to do so for a number of reasons. Managers would do well to take employees who do not appear entrepreneurial but can turn out to be good intrapreneurial choices.

Examples of Intrapreneurs:
A lot of companies are known for their efforts towards nurturing their in-house talents to promote innovation. The prominent among them is “Skunk Works” group at Lockheed Martin. This group formed in 1943 to build P-80 fighter jets. Kelly Johnson was the director of the project, a person who gave “14 rules of intrapreneurship”.

At “3M” employees could spend their 15% time working on the projects they like for the betterment of the company. On the initial success of the project, 3M even funds it for further development.

Genesis Grant is another 3M intrapreneurial program which finances projects that might not end up getting funds through normal channels. Genesis Grant offers $85,000 to these innovators to carry forward their projects.

Robbie Bach, J Allard and team’s XBOX might not have been feasible without the Microsoft’s money and infrastructure. The project required 100s of millions and quality talent to make the product.

 
 

34 Comments

  1. Emeka says:

    Keep your good work on,i appretiat your articles there very good.am a studen t of business studies and ur help is needed any business related topic send to my email. Thanks bye

  2. Perez says:

    Very kind of you. It has cleared all my doubts about entrepreneurship. Keep the spirit of sahring on your finger tips to build the world.
    Many thanks.

  3. patience kadenge says:

    you are douing agreat job im studying Entreprenuership please kindly send relating topics of that field to me

  4. kizito ivan says:

    it is quite a suprise cos ur work is good
    and it has helped mi in different fields
    of mi study am at st lawrence university uganda
    thanks
    yours the best
    KIZITO IVAN

  5. Yong Sebastian says:

    Thanks so much, there is always this confusion between these elements.People confuse an entrepreneur for and intrapreneur going through this i can see clearly the difference between this two. Keep the good work God Bless.

  6. Beautiful work. Always do something very innovative like this.

  7. Sivaram says:

    Your article was very good and informative. I am little confused with this

    Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.

    Is it not Example of Entrepreneurship rather than Intrapreneurship.

    • radhika says:

      This is showing the difference between an intrapreneur and entrepreneur, & how an intrapreneur becomes an entrepreneur.

  8. elorm says:

    i have always been confused about these two element.but ur article has really broaden my knowledge.thanks

  9. snehal akhade says:

    hey,thanks for your information about intraprenuership.it helps me a lot.if any other information regading entrepreneur send it to me on my email id

  10. Zainab says:

    Whaow! I now understand the difference between entrepreneur and intrapreneur.Thanks.

  11. Ifeanyichukwu**onuegbu says:

    your*work*is*highly*appreciated.keep*it*up.from*university*of*nigeria,nsukka(unn)

  12. renuka d says:

    classic effort.Entreprenuer or intraprenuer?Really helpful

  13. ibraheem suara says:

    thanks so much,am to be converted to academic staff in my institution.yaba college of technology.pls you can be sending related topic to me.i belief it will help me greatly in my work.

  14. Fahad says:

    Very useful info kept.. but would like u to put an indian company which has carried out intraprunership … for an example….

  15. Gertrude says:

    Being a new student of entrepreneurial studies i truly appreciate your article on the differences between entr.. and intra….Keep posting more articles they realty are enlightened.

  16. Seun says:

    Thank u thank u!…dis is an incredible information!wow!!..am contended!..send more of the topic to my mail..thanks! From novena university!

  17. lillian says:

    this is good, thanx

  18. moyeta says:

    I have always been confused about these two terms,but now i was understand from you.thanks, God bless you!!!

  19. Kmfasa says:

    Thanx i had exams concern dah two bt nw i knw keep dah spirit up

  20. sneha says:

    thank you for this information and came to know much more better what r these terms.

  21. laxman karmani says:

    thanks i ws so confuse b4 nw i well know that what is diff b/w both,i m student of business in pakistan.Lord kirshna bless u.

  22. nads says:

    You are good. The information was easy to comprehend, we appreciate your time and effort. keep up the good work.

  23. martinson ireti says:

    Thanks for this explanation cos it has realy helped me in my research about intrapreneurship.

  24. kate says:

    nice work!i need more of this

  25. ayo says:

    i love your submissions to this topic, am a business administration student, pls i will appreciate it if u can keep me updated in any bus admin elated topics in my inbox or fb. thank you

  26. Sarmistha says:

    Thanks for the informations… it will help me a lot for the exam…

  27. Sola Ayanwale says:

    A good article at that. They are very helpful particularly in researching. I authored a book on Small Buziness Management few years ago and preparing for the review.
    Certainly I have found this page of yours very useful.
    My mail is open for more of this and any other useful tips.

    Regards

  28. Ohiofudu Michael says:

    Sir, i loved ur publication. Going by ur aticle sir, ” No Entrepreneur no Intrapreneur” that is to say one depend the other. Thank u.

  29. francis kabagambe says:

    I am pursuing masters in Business administration at KIU-Uganda.As i was preparing for my exam, i landed on your article which has equipped me with more knowledge in the topic. thanks

  30. Diane says:

    Please clarify this statement: Another important factor that led to the choice between entrepreneurship and intrapreneurship was age. The study found that people who launched their own companies were in their 30s and 40s. People from older and younger age groups were risk averse or felt they have no opportunities, which makes them the ideal candidates if an organization is on the look out for employees with new ideas that can be pursued.

    Are you saying that the 30s-40s age group category make better intrapreneurs?

  31. JASON GIKERA says:

    YOUR ARTICLE IS COMPREHENSIVE.GOD BLESS YOU

  32. Sylvia Klinger says:

    Always encouraging to hear stories of entrepreneurs and Intrapreneurs. I now understand the difference!

  33. Sumari says:

    How greatful the article is. it has greatly exposed me to the meaning &differences btn entrepreneur and intrapreneur. Could u please update me with further related articles through ma mail. I am a student of PGD in Community Development -TICD Arusha TZ

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