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Difference between entrepreneurship and intrapreneurship

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This Power Point article is about the difference between entrepreneurship and intrapreneurship. It has been written by Russell Bowyer. Towards the end of the presentation is an info-graphic showing the seven differences between entrepreneurship and intrapreneurship...well this is on the actual article.

In this presentation, I will be looking at the following subjects:

- Entrepreneurship
- Intrapreneurship
- Difference no. 1. Ownership of a business
- Difference no. 2. Financial loss
- Difference no. 3. Financial gain
- Difference no. 4. Dependency
- Difference no. 5. Fund raising and capital
- Difference no. 6. Resources
- Difference no. 7. The ultimate say
- Infographic on the difference between entrepreneurship and intrapreneurship (on the original article)
- Examples of successful entrepreneurship
- Examples of successful intrapreneurship

I shall begin by explaining what an entrepreneur is versus what an intrapreneur is, before running through the differences between the two.

Published in: Business

Difference between entrepreneurship and intrapreneurship

  1. 1. inBusiness Blog - www.in-business.org.uk
  2. 2. inBusiness Blog - www.in-business.org.uk
  3. 3. Intrapreneurship Definition  This presentation is about the difference between entrepreneurship and intrapreneurship. It has been written by Russell Bowyer. In this article, I will be looking at the following subjects:  Entrepreneurship  Intrapreneurship  Difference no. 1. Ownership of a business  Difference no. 2. Financial loss  Difference no. 3. Financial gain  Difference no. 4. Dependency  Difference no. 5. Fund raising and capital  Difference no. 6. Resources  Difference no. 7. The ultimate say  Infographic on the difference between entrepreneurship and intrapreneurship  Examples of successful entrepreneurship  Examples of successful intrapreneurship inBusiness Blog - www.in-business.org.uk
  4. 4. inBusiness Blog - www.in-business.org.uk
  5. 5. i. In the Oxford Dictionary, entrepreneurship is defined as ‘The activity of setting up a business or businesses, taking on financial risks in the hope of profit.’ ii. Traditionally entrepreneurship has been defined as the process of designing, launching and running a new business. iii. An entrepreneur is a person who is typically more comfortable with taking risk. iv. The level of risk that an entrepreneur takes is very much dependent on the individual v. An entrepreneur is the person who brings the product or service into reality To Read The Full Text – Entrepreneur inBusiness Blog - www.in-business.org.uk
  6. 6. inBusiness Blog - www.in-business.org.uk
  7. 7. i. Wikipedia’s definition of Intrapreneurship is ‘The act of behaving like an entrepreneur while working within a large organisation. ii. Effectively, an intrapreneur is nothing but an entrepreneur within the boundaries of an organisation. iii. Intrapreneurship is where an individual integrates risk-taking within his corporate management approach. iv. Gifford Pinchot III’s first book in 1985 was called ‘Intrapreneuring: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur’ v. The American Heritage Dictionary acknowledged the term to mean: ‘A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.’ To Read The Full Text – Intrapreneurship inBusiness Blog - www.in-business.org.uk
  8. 8. inBusiness Blog - www.in-business.org.uk So what is the difference between entrepreneurship and intrapreneurship?
  9. 9. inBusiness Blog - www.in-business.org.uk
  10. 10. i. The most obvious difference between an entrepreneur and an intrapreneur is ownership. ii. An entrepreneur is an individual that starts up a business and is the owner…Whereas, an intrapreneur is an employee of the company and does not have any ownership. iii. Ownership of a company gives the entrepreneur the ultimate control over what the business does. iv. The intrapreneur may take ‘risks’ within the corporation where he works. v. However, the final risk comes down to the responsibility of the business owner. To Read The Full Text – Difference no. 1. Ownership of a business inBusiness Blog - www.in-business.org.uk
  11. 11. inBusiness Blog - www.in-business.org.uk
  12. 12. i. The ultimate sacrifice made by an entrepreneur is one of potential financial loss. ii. Many times the entrepreneur will use his own money for his startup business. iii. An intrapreneur will not usually be in a position to raise funds for the organisation. iv. Entrepreneurs have been known to lose everything…Whereas, if a company fails, the intrapreneur can just walk away, so bear no risk at all. v. Secondly, where a company collapses and goes into liquidation, the entrepreneur could lose everything. vi. If the business makes a loss, and runs out of cash, the entrepreneur is the one who has to make up the difference…this is not the case for intrapreneurs. To Read The Full Text – Difference no. 2. Financial loss inBusiness Blog - www.in-business.org.uk
  13. 13. inBusiness Blog - www.in-business.org.uk
  14. 14. i. On the converse of financial loss, the entrepreneur is the one who will reap the rewards of success. ii. This financial gain is two-fold. Firstly, where the company makes a profit, the entrepreneur will be able to reward himself with profits in the way of dividends. Secondly, the entrepreneur stands to gain the most on the sale of the business. iii. It’s possible that due to the nature of an intrapreneur, they may have arranged a ‘profit share’ for themselves. iv. Intrapreneurs will not usually gain from the sale of the business in the same way, except where they have an agreement in place with the business owner to take a share of the proceeds at the point of sale. To Read The Full Text – Difference no. 3. Financial gain inBusiness Blog - www.in-business.org.uk
  15. 15. inBusiness Blog - www.in-business.org.uk
  16. 16. i. Intrapreneurs are dependent on entrepreneurs in the first place to start the business. ii. Without entrepreneurs there would be no intrapreneurs to flourish. iii. The initial spark or original genius is provided by the entrepreneur. iv. Good entrepreneur leadership will lead to having intrapreneurs within their businesses. v. There’s the risk of losing a key employee who acts as an intrapreneur, making it extremely difficult to replace that individual. vi. Entrepreneurs duty is to encourage intrapreneurship, and to support and look after intrapreneurs within the business. To Read The Full Text – Difference no. 4. Dependency inBusiness Blog - www.in-business.org.uk
  17. 17. inBusiness Blog - www.in-business.org.uk
  18. 18. i. Effectively the resources used by an entrepreneur are provided by him. Entrepreneurs have to be extremely resourceful. ii. Whilst intrapreneurs are resourceful, they are not required to provide the resources need by the company. iii. Different companies and different business types required specific resources, but at no time is an intrapreneur expected to put their hands in their pockets for the business. To Read The Full Text – Difference no. 6. Resources inBusiness Blog - www.in-business.org.uk
  19. 19. inBusiness Blog - www.in-business.org.uk
  20. 20. i. The butt stops with the entrepreneur. ii. An entrepreneur always also has the final say in what happens within a business. iii. Although intrapreneurs have a high level of autonomy and creativity, they are under the ultimate control and guidance of the entrepreneur. iv. Many entrepreneurs live and die by their sword, many of whom will put their last dime to keep a business afloat. v. There’s no decision that an entrepreneur can’t take within an organisation that requires approval…whereas intrapreneurs are given certain boundaries to work with. To Read The Full Text – Difference no. 7. The ultimate say inBusiness Blog - www.in-business.org.uk
  21. 21. Sir Richard Branson – The Virgin Group Branson became an entrepreneur at an early age, starting his first venture at the age of just sixteen. His first business was a magazine called Student. His first business led to a mail-order record business. The rest is history, as they say. His net worth at the time of writing this article is over $5 billion. To Read The Full Text – Examples of successful entrepreneurship inBusiness Blog - www.in-business.org.uk
  22. 22. Tej Lalvani – Entrepreneur and Dragons Den Multi-Millionaire Tej Lalvani, a successful entrepreneur, is the CEO of the UK’s largest by sales vitamin company Vitabiotics, and will be working along-side Dragons Den Touker Suleyman too. With a yearly turnover of more than £300 million, Vitabiotics stands strong as the largest company in the manufacturing of vitamins in UK. To Read The Full Text – Examples of successful entrepreneurship inBusiness Blog - www.in-business.org.uk
  23. 23. Google - A more recent innovation by intrapreneur Paul Buchheit who created Gmail. Gmail revolutionised email at the time when Google introduced 1GB storage. This allowed users to keep their emails rather than having to delete them to keep within their smaller storage limit. To Read The Full Text – Examples of successful intrapreneurship inBusiness Blog - www.in-business.org.uk
  24. 24. Indra Krishnamurthy Nooyi - An American business executive and is the current Chairperson and Chief Executive Officer of PepsiCo. Intrapreneur Indra Nooyi was originally born in India. She moved to America in 1978 at which time she was admitted to Yale School of Management. To Read The Full Text – Examples of successful intrapreneurship inBusiness Blog - www.in-business.org.uk
  25. 25. inBusiness Blog To Read Russell’s Business Blog With Topics Intrapreneurship Definition Advantages and Disadvantages of Offshoring About Russell Bowyer & How Whilst fighting For His Life From Cancer, he Began to Write Again inBusiness Blog - www.in-business.org.uk

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