INTRODUCTION TO ENTREPRENEUR: Entrepreneurs and Intrapreneurs

 1.6 Entrepreneurs and Intrapreneurs

1. Entrepreneurs

Definition:
An entrepreneur is an individual who identifies a business opportunity, assumes the financial and operational risks, and organizes resources to establish and run a new business venture. Entrepreneurs innovate, create, and lead businesses with the aim of generating profits and value.

Characteristics of Entrepreneurs:

1. Visionary Thinking: They have a clear vision of what they want to achieve and plan accordingly.
2. Risk-taking Ability: They are willing to take calculated risks to achieve their goals.
3. Innovation: They introduce new ideas, products, or processes to the market.
4. Resilience: They can face challenges and failures without giving up.
5. Decision-making Skills: Entrepreneurs make quick and effective decisions.
6. Self-motivation: They have the drive to work hard without external encouragement.
7. Leadership: Entrepreneurs inspire and lead teams towards common objectives.

Functions of Entrepreneurs:

1. Idea Generation: Conceptualizing innovative products or services.
2. Risk Management: Bearing the uncertainties associated with the business.
3. Resource Allocation: Procuring and utilizing human, financial, and material resources.
4. Business Planning: Formulating business strategies and plans for execution.
5. Market Research: Analyzing customer needs, market trends, and competition.
6. Economic Development: Contributing to job creation and national GDP.

Types of Entrepreneurs:

1. Innovative Entrepreneur: Focuses on innovation and new ideas.
2. Imitative Entrepreneur: Adopts existing products or ideas with modifications.
3. Social Entrepreneur: Aims to solve social issues through their business.
4. Lifestyle Entrepreneur: Pursues a business aligned with their personal interests and lifestyle.
5. Serial Entrepreneur: Continuously starts and develops new businesses.

Importance of Entrepreneurs:

1. Economic Growth: Boosts GDP by creating businesses and employment.
2. Innovation: Drives technological advancement and societal progress.
3. Job Creation: Provides employment opportunities for others.
4. Regional Development: Promotes development in rural and less developed areas.
5. Social Impact: Improves quality of life through innovative solutions.

2. Intrapreneurs

Definition:
An intrapreneur is an employee within an organization who acts like an entrepreneur by taking initiative, innovating, and driving new projects or ideas for the organization’s growth. Intrapreneurs work within the boundaries of a company and utilize its resources.

Characteristics of Intrapreneurs:

1. Innovative Mindset: They develop creative solutions for organizational challenges.
2. Proactive Approach: They identify opportunities and take the lead in implementing them.
3. Ownership Mentality: They treat projects as their own responsibility.
4. Risk-taking: Willing to experiment with new ideas within the company.
5. Collaborative: Works well in a team and leverages organizational resources effectively.
6. Adaptability: Quickly adapts to changes and aligns with organizational goals.

Functions of Intrapreneurs:

1. Driving Innovation: Introducing new ideas, products, or processes.
2. Problem-solving: Addressing organizational inefficiencies.
3. Resource Utilization: Effectively using company resources for project execution.
4. Project Management: Planning, executing, and monitoring new initiatives.
5. Organizational Growth: Contributing to the company's strategic objectives.

DIFFERENCE BETWEEN ENTREPRENEURSHIP AND INTRAPRENEUR 

Sl.No	Basis of difference	Entrepreneur	Intrapreneur
1	Definition	They are decision-makers and work independently. They hold the authority to execute a business idea or plan.	They are idea makers, and the decision to implement lies with their organisation.
2	Goals	They introduce something new and of socioeconomic value to the market	They work towards improving the performance and market sustainability of an established company.
3	Ownership	Entrepreneur is owner of the enterprise.	Intrapreneur is dependent on entrepreneur who performs the task of innovation.
4	Status	An entrepreneur is independent in his operatons.	The intrapreneur is dependent upon entrepreneur.
5	Capital formation	Entrepreneur himself forms capital	Intrapreneur does not form capital
6	Risk	An entrepreneur operates from outside	An intrapreneur does not fully bear the risk involved in an enterprise.
7	Operation	Entrepreneur bears the risk involved in an enterprise	Intrapreneur operates from within the organisation.
8	Guarantee of investment	Entrepreneur gives guarantee to the investors for their investment	Intrapreneur himself is a manager, so he manages from within. Question of guarantee does not arise.
9	Management	Entrepreneur manages the enterprise from outside.	Intrapreneur is a professional manager.
10	Professional qualification	Entrepreneur need not possess professional qualification	Intrapreneur must possess professional qualification.
11	Motivation	Self-motivated and determined to take the business to another level	Motivated by appreciation, salary growth, and appraisals