7  Entrepreneur vs. Intrapreneur

7.1 Introduction

Entrepreneurship manifests in two important ways:

An entrepreneur establishes a new venture by recognizing opportunities, mobilizing resources, and assuming risk.

An intrapreneur works within an existing organization, acting like an entrepreneur but leveraging the company’s resources, networks, and infrastructure.

Both roles are essential to a dynamic economy. Entrepreneurs bring new ventures, industries, and wealth creation, while intrapreneurs help existing organizations renew, adapt, and compete.

As highlighted by Hisrich, Peters & Shepherd (2020) and Khanka (2020), modern economies thrive not on the strength of one or the other, but on the synergy between entrepreneurs and intrapreneurs.

7.2 Defining the Concepts

  • Entrepreneur: An innovator and risk-bearer who creates and organizes new ventures, mobilizing resources independently.
  • Intrapreneur: An entrepreneurial employee who develops innovations within a company, using its resources and networks (Pinchot, 1985).

7.3 Comparative Framework

Aspect Entrepreneur Intrapreneur
Context Builds new venture externally Innovates within existing organization
Resources Must acquire capital, labor, networks Provided by parent company
Risk Financial, personal, business failure Career, reputation, project failure
Decision-making Independent and autonomous Constrained by corporate hierarchy
Rewards Profit, ownership, independence Recognition, promotions, incentives
Objective Market entry, new industries Organizational renewal, competitiveness
Examples Flipkart founders, Ola founders Gmail (Google), Post-it Notes (3M)

7.4 Motivations

7.4.1 Entrepreneurs

  • Independence and ownership.
  • Wealth creation and long-term financial freedom.
  • Passion for solving problems creatively.
  • Desire for recognition and legacy.

7.4.2 Intrapreneurs

  • Career growth and recognition.
  • Fulfillment through contribution to innovation.
  • Ability to make an impact without starting from scratch.
  • Opportunity to access large organizational resources.

7.5 Competencies Required

  • Entrepreneurs: Fundraising, risk-taking, strategic networking, vision-setting.
  • Intrapreneurs: Creativity within constraints, leadership in teams, negotiation skills, alignment with corporate goals.

7.6 Organizational Context of Intrapreneurship

For intrapreneurship to succeed, organizations must:
- Foster leadership support and tolerance for failure.
- Provide resources and infrastructure (R&D labs, incubators, innovation cells).
- Create reward systems for innovative ideas.
- Develop a culture of autonomy and trust, reducing bureaucracy.

Examples:
- Google (20% time policy) allowing employees to pursue side projects.
- Infosys Labs (India) encouraging product-based innovations.
- 3M (USA) giving employees freedom to experiment, leading to Post-it Notes.

7.7 Advantages and Limitations

Role Advantages Limitations
Entrepreneur - Independence and ownership
- Unlimited wealth potential
- Full creative freedom
- Ability to disrupt industries		 - High failure rates
- Financial insecurity
- Lack of institutional support
- Resource constraints
Intrapreneur - Organizational support
- Resource access (capital, networks)
- Reduced financial risk
- Opportunity to scale innovation faster		 - Limited autonomy
- Risk of ideas being rejected
- Organizational politics
- Rewards not always proportional to effort

7.8 Role in Corporate Strategy

Intrapreneurship is often aligned with corporate strategies for diversification and renewal.
- Entrepreneurs pursue entirely new markets, often creating disruption.
- Intrapreneurs strengthen the competitiveness of existing firms by adapting to industry shifts.

This dual approach ensures both exploration (entrepreneurs) and exploitation (intrapreneurs) of opportunities.

7.9 Policy and Ecosystem Perspective

  • Entrepreneurs depend on external ecosystems: venture capital, incubators, accelerators, and supportive policies (e.g., Startup India).
  • Intrapreneurs thrive in internal ecosystems: innovation-friendly corporate policies, leadership encouragement, and organizational culture.

7.10 Global vs. Indian Context

  • Global: Economies like the USA and Japan nurture intrapreneurship through open innovation cultures and R&D investment.
  • India: Entrepreneurship is rapidly expanding, but intrapreneurship is still emerging, particularly in IT and manufacturing firms (Infosys, Tata, Wipro). Hierarchical structures often act as barriers.

7.11 Complementary Roles

Entrepreneurs and intrapreneurs complement each other:
- Entrepreneurs bring new industries, jobs, and competition.
- Intrapreneurs ensure large firms evolve and stay relevant.
- Economies thrive when both coexist — startups fuel dynamism, while intrapreneurs keep corporations agile.

Drucker (1985) emphasized that entrepreneurship must be embedded in organizations, while Desai (2014) observed that both create a balance between disruption and stability.

7.12 Case Studies

  1. Google (Global): Gmail and AdSense were intrapreneurial outcomes, born inside the company.
  2. 3M (Global): Post-it Notes resulted from employees experimenting beyond formal goals.
  3. Tata Group (India): Tata Nano project exemplified intrapreneurship in a corporate context.
  4. Infosys (India): Innovation labs supported intrapreneurial projects in IT services.
  5. Flipkart (India): Showcases entrepreneurship by creating a new e-commerce ecosystem.

7.13 Conceptual Diagram

graph LR
    A["Entrepreneur"] --> B["Creates New Venture"]
    A --> C["Mobilizes Own Resources"]
    A --> D["Assumes Financial Risk"]
    A --> E["Independent Decisions"]
    A --> F["Profits & Ownership"]

    G["Intrapreneur"] --> H["Innovates Within Firm"]
    G --> I["Uses Company Resources"]
    G --> J["Career/Project Risk"]
    G --> K["Bound By Corporate Rules"]
    G --> L["Recognition & Career Growth"]

    A --- M["Complementary Roles<br>Disruption + Renewal"]
    G --- M

    %% Style
    classDef dark fill:#004E64,color:#ffffff,stroke:orange,stroke-width:3px,rx:10px,ry:10px;
    class A,B,C,D,E,F,G,H,I,J,K,L,M dark;

7.14 Summary

  • Entrepreneurs and intrapreneurs share the spirit of innovation and opportunity recognition.
  • Entrepreneurs: independent, high risk, profit-driven, resource-constrained.
  • Intrapreneurs: supported, lower financial risk, but limited autonomy.
  • Both face unique advantages and limitations, captured in their different motivations and contexts.
  • Organizations and economies need both — entrepreneurs for venture creation, intrapreneurs for organizational renewal.
  • Case studies from Google, 3M, Tata, Infosys, and Flipkart highlight their complementary contributions.