Entrepreneurship, Social Entrepreneurship, and Intrapreneurship within Creative Industries - Essay Example

Entrepreneurship, Social Entrepreneurship and Intrapreneurship within Creative Industries Student’s Name Institutional Affiliation Date Entrepreneurship, Social Entrepreneurship and Intrapreneurship within Creative Industries There exist inherent differences between intrapreneurship, entrepreneurship and social entrepreneurship within creative industries. Intrapreneurship refers to the practice of coming up with novel ventures within existing organizations in order to exploit novel opportunities and generate economic value (Parker, 2011). Entrepreneurship refers to the practice of coming up with new ventures outside existing organizations (Parker, 2011). In addition, social entrepreneurship entails the exploitation, recognition and evaluation of opportunities to generate social value (Certo and Miller, 2008). In the above case, social value denotes the basic, as well as the long-standing requirements of society. It is worth noting that a key characteristic of creative industries is their highly specialized and individualized work (Bilton and Cummings, 2010). Creative industries are distinct in that they possess an educated, talented, and creative class (Lazzeretti, 2012). This class comprises of scientific, professional and artistic employees who are all guided by a creative ethos (Lazzeretti, 2012). While intrapreneurship, entrepreneurship and social entrepreneurship help boost creative industries, there exists key differences and similarities between the three concepts. Differences Between Entrepreneurship, Social Entrepreneurship and Intrapreneurship There are several differences between the concepts of entrepreneurship and social entrepreneurship within the creative industry. First, social entrepreneurship seeks to create social value primarily by addressing societal needs. Social value entails the satisfaction of societal needs which may include food, water, medical services, shelter and education to needy people in the society (Certo and Miller, 2008). By contrast, entrepreneurship primarily seeks to generate economic value for the sole benefit of an individual or shareholders (Certo and Miller, 2008). The possibility of financial gain serves to motivate entrepreneurs to chase different opportunities in the market (Chaston and Sadler‐Smith 2012). Additionally, wealth creation remains a key extrinsic objective for pursuing entrepreneurship. Another key difference between the concepts of entrepreneurship and social entrepreneurship is that entrepreneurship can only occur in organizations that are solely profit oriented while social entrepreneurship could occur in organizations that are not profit oriented. Short, Moss and Lumpkin 2009, assert that social entrepreneurship is not limited solely to non-profit companies and organizations. Evidently, there are stark contrasts between the concepts of entrepreneurship and social entrepreneurship within the creative industry. The concepts of intrapreneurship and social entrepreneurship are different in various ways. The first difference between the two concepts relates to the domain within which the pursuit of business opportunities transpires. Intrapreneurship occurs within the bounds of the corporate environment while social entrepreneurship is extrinsic in nature. In intrapreneurship, the intrapreneur acts within an extant organization and assumes responsibility for innovation and plays a central role in the introduction of new services, products and processes (Camelo-Ordaz, Fernández-Alles, Ruiz-Navarro and Sousa-Ginel 2012). In social entrepreneurship, the social entrepreneur actively exploits and pursues business opportunities outside the bounds of a particular organization. The second difference between the concepts of intrapreneurship and social entrepreneurship relates to their respective primary goals and objectives. The main objective of social entrepreneurship is to generate social value while the primary objective of intrapreneurship is to create economic value within the organization. Nicholls 2008, broadly defines social entrepreneurship as any entrepreneurial activities undertaken by individuals or organizations that primarily seek to create long-lasting social value. Additionally, social entrepreneurship entails the establishment of organizations, usually non-profits that generate social value through the application of business-like strategies that satisfy social needs (Nicholls 2008). It is thus pretty apparent that the concepts of intrapreneurship and social entrepreneurship are different in various ways. Though intrapreneurship is entrenched in entrepreneurship, the concepts are fundamentally different. The first key difference between the concepts relates to the level of risk. In intrapreneurship, intrapreneurs take risky decisions and utilize company resources in their pursuit of opportunities while in entrepreneurship, entrepreneurs take risky decisions and employ personal resources in their pursuit of opportunities (Camelo-Ordaz et al. 2012). Another key difference between the two concepts is that intrapreneurship occurs among an organization’s employees while entrepreneurship transpires externally. Intrapreneurship and entrepreneurship are distinct in that entrepreneurship primarily entails the development of tacit knowledge within novel organizations while in intrapreneurship, intrapreneurs work in organizations that possess their own bureaucracy, policies and procedures (Camelo-Ordaz et al. 2012). The fourth difference between intrapreneurship and entrepreneurship in the context of creative industries relates to the ownership of the innovative concept. In entrepreneurship, the entrepreneur is the primary owner of the concept and holds intellectual rights to it. Meanwhile, in intrapreneurship, the organization is the main owner of an innovative concept and the intrapreneur holds little equity in a particular venture. Another significant difference between the two concepts in the realm of creative industries relates to rewards and compensation. In entrepreneurship, potential rewards and compensation for the entrepreneur are virtually unlimited while in intrapreneurship, the organization has the power to limit the potential rewards that an intrapreneur can receive. The concepts are also different in that, in entrepreneurship a single strategic gaffe has the potential to result in instant failure while in intrapreneurship, there is more flexibility when errors occur. This is primarily because organizations have more room for trial and error in their quest to create value for their customers. According to Desouza 2011, intrapreneurship necessitates the commercialization of ideas to generate solutions that create value for customers. The last difference between the two concepts relates to susceptibility to externalities. In entrepreneurship, the creative entrepreneur is more susceptible to externalities and outside influences while in intrapreneurship, the intrapreneur is less susceptible to externalities mainly due to the insulation provided by the organization itself. Similarities Between Entrepreneurship, Social Entrepreneurship and Intrapreneurship In the realm of creative industries, the concepts of entrepreneurship and intrapreneurship share multiple similarities. One notable similarity between the two concepts is that both of them entail the recognition, pursuit and definition of opportunities that have economic value. In essence, entrepreneurship is both an economic undertaking and a form of art (Henry 2007). Second, both entrepreneurship and intrapreneurship are similar in that they call for the creation of a unique idea that can be transformed into a service, product or process. The third similarity between the two concepts relates to the vulnerability of innovative ideas. In entrepreneurship and intrapreneurship, the innovative idea is most vulnerable at the formative phase and requires a gradual adaptation process. The two concepts are also similar in that their primary objective is to create value for the customer and offer accountability to clients. Jones, Lorenzen and Sapsed, 2015, posit that a key goal of entrepreneurship within creative industries is to create a meaningful impact on the lives of customers. Both entrepreneurship and intrapreneurship are similar in that the unique business idea is driven and championed by one person. The individual may work alone or engage a team of individuals who share his/her creative ethos to attain tangible results. Another key similarity between the two concepts is that both have a certain level of risk and call for the employment of a comprehensive risk management strategy. Lastly, the concepts of entrepreneurship and intrapreneurship are similar in that they require the entrepreneur and intrapreneur to come up with creative approaches that allow them to leverage available resources. The concepts of entrepreneurship and social entrepreneurship share a host of similarities. One notable similarity between the two concepts in the context of creative industries is that both entrepreneurship and social entrepreneurship necessitate the entrepreneur to create a balance between proactiveness and patience. This is primarily because a novel concept or business idea requires time to grow into a successful service or product. Second, the two concepts are similar because they entail taking a certain level of risk. A notable risk associated with entrepreneurship, as well as social entrepreneurship includes the failure of a novel business idea at the formative phase. Third, the two concepts are similar in that they take place outside the bounds of an organization. In both cases, the entrepreneur and social entrepreneur invest their own resources and become sole owners of their business concepts. Fourth, both entrepreneurship and social entrepreneurship require individuals to capitalize and seize opportunities at the right moment. This is mainly because the success or failure of specific business ideas is contingent upon the timely utilization of different windows of opportunity. Evidently, the concepts of entrepreneurship and social entrepreneurship share a host of similarities. In the context of creative industries, social entrepreneurship and intrapreneurship have some notable similarities. First, both concepts entail the recognition, as well as the definition of opportunities. Additionally, both social entrepreneurship and intrapreneurship involve taking different levels of risk and putting in place risk management plans. Lastly, both concepts involve the transformation of unique business ideas into services, products or processes. In conclusion, it is evident that while intrapreneurship, entrepreneurship and social entrepreneurship help boost creative industries, there exists key differences and similarities between the three concepts. It is worth noting that the primary difference between intrapreneurship social entrepreneurship, entrepreneurship in the context of creative industries is that intrapreneurship occurs within the bounds of the corporate environment while both social entrepreneurship and entrepreneurship are extrinsic in nature. Additionally, a common similarity between the three concepts is that they entail the transformation of unique business ideas into services, products or processes. 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Lazzeretti, L. ed., 2012. Creative industries and innovation in Europe: concepts, measures and comparative case studies. Routledge. Nicholls, A. ed., 2008. Social entrepreneurship: New models of sustainable social change. OUP Oxford. Parker, S.C., 2011. Intrapreneurship or Entrepreneurship?. Journal of Business Venturing, 26(1), pp.19-34. Short, J.C., Moss, T.W. and Lumpkin, G.T., 2009. Research in social entrepreneurship: Past contributions and future opportunities. Strategic entrepreneurship journal, 3(2), pp.161-194. Read More