Discriminate Between Intrapreneurship and Entrepreneurship - Assignment Example

Discriminate Between Intrapreneurship and Entrepreneurship within Various Business Settings Introduction The reason why intrapreneurs and entrepreneurs have suddenly became more important is because at present we are under the influence of the new technologies. Decisive roles are being played by the intrapreneurs and entrepreneurs as they help the company to enter into the new markets to engage in one’s own business ideas. The concepts of entrepreneurship are considered to be the process of developing and uncovering an opportunity and creating value by seizing the opportunity through innovation, without any regards to the location of the intrapreneur or entrepreneur in existing or new company. The concept of intrapreneurship represents the implementation as well as the initiation of innovative practices and system within the company by some of its employees, under the supervision of the manager who play the role of an intrapreneur for improving the performance of the company. The manager improves the economic performance of the company by using resources that have not previously been used in an appropriate manner. This concept also tries to improve the financial as well as economic performance of the firm by using a motivational system for the employees and also by using the resources more efficiently. Intrapreneurs act inside the organization, fighting for changing and renewing the system. They are considered to be the revolutionaries present with the systems of the company. This may even initiate some kind of conflict with the company and therefore factors such as respect must be used for channeling these conflicts and transforming them into some kind of positive aspect for the company. The resources of the company are used by the intrapreneurs for implementation of opportunities; however there are several objectives highlighting the fact why intrapreneurship is considered to be so difficult to be implemented within an existing company (Stewart & Roth, 2007). Companies that have used Innovation to Develop Revolutionary Products and Services History books are full of companies that have used the power of innovation to come out with revolutionary products that have been game changers in the industry. We now discuss a few of them: Google: Prior to Google, there was no proper search engine. Finding things on the web was not an easy thing & while the internet was still in development phase, there existed a need of a common directory. The finding of Google played a pivotal role in internet search and to date the Company is the leader in search engine, and now also expanded in developing operating systems and robotic systems Apple: Apple’s Iphone was practically the first proper touch screen multimedia phone in the industry. Its launch by Apple came in at a time when there were practically no competitors in the market, and that made it a brand in the eyes on consumers. To date Iphones are considered phones that are a class apart and their invention surely did change the way people looked at cell phone. Toyota Electric Cars: The advent of electric cars brought about a revolution in the car industry. These cars are much more ecofriendly and also very efficient. Their development was hailed as a major achievement in the industry & to that this invention remains a key to Toyota’s success in the world automobile market. Bose: The Company pioneered in the mass invention of sound products and to date the Company is global leader of car and home audio systems. Features like crisp sound with high bass levels were brought about in the industry by Bose. Similarities between Entrepreneurship and Intrapreneurship Both entrepreneurship and intrapreneurship involves defining and recognizing opportunities. Both of these concepts take into account unique business ideas which take the form of a product, service or process by the end. Entrepreneurship and intrapreneurship are driven by one or two individuals who then work with the team of people for bringing the concept into practical life. These concepts also require the balance between vision and management skills, reactiveness with patience and passion with pragmatism. Entrepreneurship as well as intrapreneurship involves concepts that are considered vulnerable in formative stages and therefore requires adaption with time. Both these concepts are known for entailing a window of opportunity for the firm within which the entrepreneur is successfully capitalizing upon. They both give prediction on accountability and value creation to their customers. Entrepreneurship as well as intrapreneurship requires the effective management of risk strategies. It requires that the entrepreneur may develop some kind of creative strategies for leveraging the resources. Entrepreneurship as well as intrapreneurship require harvesting the strategies and also involve significant uncertainty (Thomas & Mueller, 2000). Differences between Entrepreneurship and Intrapreneurship In the starting of the business the entrepreneur takes the risk on their own, whereas for the intrapreneur the risk is been taken by the company, other than the risks related to career. In entrepreneurship, the concept and the ideas of business is owned by the person, whereas in intrapreneurship the concept as well as its intellectual rights are usually owned by the company, with the intrapreneur having only little or no equity at all in the business ventures. The rewards coming for the entrepreneur after the success of the new venture may be unlimited, whereas the organization limits the rewards for the intrapreneurs, as they are the employees. The startup venture for the entrepreneur may be a complete failure; whereas in intrapreneurship the company is usually good at handling the management errors. In the starting of the business venture the entrepreneur may be subjected to outside influence, whereas in intrapreneurship the organization is considered to be more insulated from the external sources. There are more differences pinpointed by the authors between intrapreneurship and entrepreneurship. Even though the concept of intrapreneurship gains its roots from entrepreneurship but still many difference exists between the two concepts. For example intrapreneurs make risky decision by depending upon and using the resources of the company; whereas on the other hand entrepreneurs make some risky decisions by using the resources of their own. The concept of entrepreneur is mainly focused on the external factors; whereas that of intrapreneurship takes place within the company. Entrepreneurs are known for using the tacit knowledge in their new organization rather than depending upon the knowledge, experiences, mechanism and procedure of other organizations. While on the other hand the intrapreneurs are totally dependent on the company which has its own procedures, policies and bureaucracy for deriving their own knowledge. It can be concluded that entrepreneurship is more dependent concept, whereas the strings of intrapreneurship is attached with the organization (Stewart M. , 2002). Entrepreneurship Intrapreneurship Requires personal capital Usually Company funded Entrepreneur is the whole and sole leader Intrapreneurs lead, but the final say is of the Company that buys into the idea Entrepreneur makes all the profit Intrapraneur sells his profit stake usually for a share in the management Very high risk venture for the entrepreneur Medium to low risk as personal capital is not affected + The max the person loses out is his own job Advantages Associated with Entrepreneurship and Intrapreneurship Entrepreneurship provides independency to an individual making him his own boss. It increases his income, giving him a chance of being creative and original. The job may not be same old one but brings excitement and adventure for the entrepreneur every day. As the person is considered to be his own boss, he is able to decide his own salary. This kind of job is full with possibilities; whereas on the other hand, intrapreneurship provides an opportunity to the person to work in a friendly environment. It gives the opportunity to the individual to practice his skills in the organizational environment but at higher risk, where he does not have much to lose. In intrapreneurship the individual becomes creative by using the good name of the company, resources and knowledge. Intrapreneurship also provides the individual an opportunity to directly access its customers and also the infrastructure of the company. Disadvantages associated with Entrepreneurship and Intrapreneurship The entrepreneur have to face a lot of money pressure as they give up on the secure regular pay check, which they initially received from their organizations. There are much lesser benefits and profits for the firm as the business is new. As the entrepreneur is his own boss, he has the responsibility of working for longer working hours. The person is allowed to make his own decisions which at times may not be considered effective. The mistakes are also magnified for the entrepreneurs. While working as an entrepreneur, the rewards given to a person for his hard work may not be up to his expectations. Innovation enforced by the person may not be appreciated by everyone present in the organization. The person may have the liberty of being innovative but only to a certain extent, as he is not his own boss. Conclusion This paper explains the difference between entrepreneurship and intrapreneurship, also identifying the relationship between the two concepts. During the time of economic difficulties entrepreneurship and intrapreneurship are considered to be effective tools for breaking out this whole trend through innovation, by introducing something new in the market. Both these concepts are the instruments of innovation helping in accessing new markets and creating new opportunities. There is no doubt about the fact that without the development of insight towards the concepts of entrepreneurship and intrapreneurship, companies may realize no change. The value created by a company today may be of no use tomorrow and therefore only a sustainable company that knows the difference between intrapreneur and entrepreneur may be able to convert creativity and ideas into values for future. References Economic Development and Business Ownership: An Analysis Using Data of 23 OECD Countries in the Period 1976–1996. (2002). Small Business Economics. Stewart, W. H., & Roth, P. L. (2007). A Meta-Analysis of Achievement Motivation Differences between Entrepreneurs and Managers*. Journal of Small Business Management, 401-421. Thomas, A. S., & Mueller, S. L. (2000). A Case for Comparative Entrepreneurship: Assessing the Relevance of Culture. Journal of International Business Studies, 187-202. Read More