Entrepreneurship Versus Intrapreneurship

Entrepreneurship versus Intrapreneurship1 Veronica MAIER2 Cristiana POP ZENOVIA Abstract This paper provides a review of divinatory studies on the concepts of entrepreneurship and intrapreneurship, pin heighting the similarities and differences mingled with them. Entrepreneurship continues to thrive in al more or less all corners of the world. Entrepreneurs atomic number 18 reshaping the t crave environment, creating a world in which their companies play an important routine in the vitality of the global economy. But at that place is not invariably necessary to establish a company in wander to follow up b be-assed ideas.A great latent lies in applying line of business principles within breathing organizations. mainarrestwords entrepreneurship, intrapreneurship, human capital, business, leadership JEL classification L26 Introduction Why atomic number 18 entrepreneurs and intrapreneurs curtly more important today than before? An explanation to this question would be tha t the world is changing nowadays more rapidly under the go of new technologies. The increasing competition hinders our work. It does not suffice anymore to be deport before our competitors simply driven by our will of competing we have to lick something new to the market.Entrepreneurs and intrapreneurs play a decisive role as they economic aid the company ( freshly established or existing) to engage in new business and enter new markets. The concept of entrepreneurship is seen as the process of uncovering and maturation an opportunity to create value through origination and seizing that opportunity without regard to either resources (human and capital) or the location of the entrepreneur in a new or existing company (Churchill, 1992). 1 2 investiture in people Ph. D. scholarship, Project co-financed by the SECTORAL OPERATIONAL PROGRAM FOR human race RESOURCES DEVELOPMENT 2007 2013, Priority Axis 1. Education and training in swear for growth and development of a experienc e based society, Key area of intervention 1. 5 Doctoral and post-doctoral programs in support of research. cut nr. POSDRU/88/1. 5/S/60185 INNOVATIVE DOCTORAL STUDIES IN A KNOWLEDGE BASED SOCIETY Babes-Bolyai University, Cluj-Napoca, Romania Veronica MAIER, Babes-Bolyai University, Romania e-mailveronica. emailprotected com Cristiana POP ZENOVIA, Babes-Bolyai University, Romania E-mailcristina. emailprotected com playscript 12, impression 5, December 2011 971 critical review of International comparative managementIntrapreneurship demo the initiation and giveation of innovative formations and practices within an organization, by some of its rung under the supervision of a manager who takes the role of an intrapreneur, in order to improve the economical performance of the organization, by using a discontinue of its resources, namely those that previously have not been used in an fascinate manner. Intrapreneurship improves the economical and financial performance of the co mpany, by applying a more effective use of the resources and by using a suit subject motivational system for its employees (Istocescu, 2003).Similarities and differences between entrepreneurship and intrapreneurship Unlike the entrepreneur, the intrapreneur acts within an existing organization. The intrapreneur is the revolutionary inside the organization, who fights for variegate and renewal from within the system. This may give rise to conflicts within the organization, so respect is the necessary key in order to channel these conflicts and convert them into positive aspects for the organization.Even though intrapreneurs benefit from using the resources of the organization for the implementation of the rising opportunities, there are several motives why innovation is more embarrassing to implement in an existing organization, such as (Malek & Ilbach, 2004) The size the bigger the organization the more difficult it is to have an overview of the actions of every employee Lack of parley Specialization and separation, help in concentrating on the areas of interest, but hinder communication. infixed competition Internal competition amplifies the problem because instead of sharing the knowledge with early(a)s it borders the knowledge sharing. Everyone wants to keep the information for themselves. Feedback received in case of success/mistake Costs in case of failure are as well as great and the reward for a successful outcome too small. Intrapreneurs essential be allowed to commit mistakes, because such mistakes are an inevitable part in the entrepreneurial process. The recognition of success is also very rare.No company provides compensation in advance for what an entrepreneur might accomplish, but a push-down list of them like to talk about the concept of intapreneurship and expected their employees to get bear on and assume their chance. But finally, when motivated employees get involves and have success their unless reward is a small bonus. Dullness Many companies are decompress and reluctant to variegate. Intrapreneurs bump many times into the well known reprobate We always did it this way, which leaves little or no space to creative thinking.The willingness to experiment new things appears only when the companys shortcomings become apparent, but even so they presumet give room to an innovative leadership. Hierarchies Organizational hierarchies compel employees to ask permission for actions that fall outside their daily duties. The more complex the pecking order the more difficult it is to impose change. Hierarchies 972 Volume 12, Issue 5, December 2011 Review of International Comparative Management have also tended to create a short-term thinking.Employees on lower hierarchical levels have a Victim-Mentality overdue to a reduced area of action and reduced responsibilities. Those who wish to implement innovative ideas should first consider what the best option for them is as an intrapreneur, as part of an exis ting organization, or an entrepreneur in a newly established company. In order to give an answer to this question an compendium of the advantages and disadvantages of both concepts is required. The table below helps someone decide what type of business best suits him after confronting him with the advantages and disadvantages that await him.Table 1 Entrepreneurship and intrapreneurship advantages and disadvantages ENTREPRENEURSHIP Advantages Disadvantages You are your own head independency Money pressure giving up on the warranter of a regular paycheck The income increases Less benefits as the business is new You have the chance to be original You have part of irritation and adventure Long working hours Mistakes are magnified There are a lot of possibilities Salary authorisation you decide upon your All decisions must be made alone own salary INTRAPRENEURSHIP Advantages Disadvantages Ability to stay in a friendly, well known Reward may not be up to expectation environ ment Innovation may not be appreciated Practicing your skills within an organizaaccordingly tion lower risk You keister be innovative but to a cerUsing companies resources, good name, tain limit you are not your own knowledge boss Access to customers, infrastructure After comprehend the pros and the cons of each concept we think that it is useful to see also the similarities and differences between these two concepts.Morris & Kuratko (2002) are of the opinion that the literature is sometimes confusing in underlining what exactly machinates an entrepreneur different from an intrapreneur and what they have in common. This is why they point out a serious a similarities and differences Review of International Comparative Management Volume 12, Issue 5, December 2011 973 Table 2 Entrepreneurship and intrapreneurship similarities and differences Similarities some(prenominal) involve opportunity recognition and definition. some(prenominal) require a laughable busines s concept that takes the form of a product, process, or service. Both are driven by an individual champion who works with a group to bring the concept to fruition. Both require that the entrepreneur be able to balance vision with managerial skill, passion with pragmatism, and proactiveness with patience.Both involve concepts that are most vulnerable in the formative stage, and that require adaptation over time. Both entail a window of opportunity within which the concept can be successfully capitalized upon. Both are predicated on value foundation garment and accountability to a customer. Both entail risk and require risk management strategies. Both require the entrepreneur to develop creative strategies for supplement resources. Both involve significant ambiguity. Both require harvesting strategies. Differences In start-up entrepreneurship, the entrepreneur takes the risk in intrapreneurship and the company takes the risk other than career-related risk. In start-up the individu al entrepreneur owns the concept and business in intrapreneurship the company typically owns the concept and intellectual rights with the individual entrepreneur having little or no equity in the venture at all. In a start-up potential rewards for the individual entrepreneur are theoretically unlimited where in intrapreneurship an organisational structure is in place to limit rewards/compensation to the entrepreneur/employee. In a start-up venture, one strategic gaffe could mean instant failure in intrapreneurship the organization has more flexibility for management errors. In a start-up the entrepreneur is subject or more susceptible to outside influences in intrapreneurship the organization is more insulated from outside forces or influence. Source Morris, 2000Other famous authors have also pinpointed some differences between entrepreneurship and intrapreneurship. Even though intrapreneurship is rooted in entrepreneurship (Amo & Kolvereid, 2005 Antoncic, 2001 Davis, 1999 Honig, 2001), there are several differences between these two concepts. In this mount Antoncic & Hisrich (2003) note that sequence intrapreneurs make risky decisions by using the resources of the company, the entrepreneurs make risky decisions using their own resources (Antoncic & Hisrich, 2003). Intrapreneurship takes place among employees from within an organization while entrepreneurship tends to mainly be externally focused (Antoncic & Hisrich, 2003 Davis, 1999).Entrepreneurs prefer to develop tacit knowledge, in new organizations, instead of using procedures and mechanisms from other companies. On the other hand intrapreneurs work in organizations that have their own policies, procedures and bureaucracy (Antoncic & Hisrich, 2003 Davis, 1999). 974 Volume 12, Issue 5, December 2011 Review of International Comparative Management Although there are several differences between entrepreneurship and intrapreneurship, they also have some connections because intrapreneurship is cons istently positioned as entrepreneurship within organizations (Antoncic, 2001 Davis, 1999). Conclusions In this paper we have reviewed the literature, which explores both entrepreneurship and intrapreneurship and the traffic between them.An important outcome of the review is the identification of the similarities and differences between entrepreneurship and intrapreneurship and also the advantages and disadvantages of both concepts. Nowadays, when we are facing economically difficult times, entrepreneurship and inrapreneurship are an elegant tool for breaking out of the trend trough innovation, by deliverance something new on the market. Both entrepreneurship and intrapreneurship are instruments of innovation that help in creating new competencies and accessing new markets. Finally, without developing the insight towards these various aspects, no change of the company can be realized, and changing, so adapting means in fact, the endurance of that company.The value created yesterd ay, can mean nothing today, therefore only a sustainable company, who recognizes the difference between an entrepreneur and intrapreneur, can turn ideas and creativity into successful new values for tomorrow. Bibliography 1. 2. 3. 4. 5. 6. 7. Amo, B. W. & Kolvereid, L. (2005). Organizational strategy, individual personality and innovation behavior ledger of Enterprising Culture, 13(1), pp. 7-19. Antoncic, B. (2001). Organizational processes in intrapreneurship a conceptual integration, daybook of Enterprising Culture, 9(2), pp. 221-35. Antoncic, B. , & Hisrich, R. D. (2003). Clarifying the intrapreneurship concept, Journal of secondary Business & Enterprise Development, 2003, pp. 724 Churchill, N. C. , Reserch issues in entrepreneurship (2003). n Antoncic, B & Hisrich, R, D, Clarifying the intrapreneurship concept, Journal of Small Business & Enterprise Development, pp. 7-24 Davis, K. S. (1999). Decision criteria in the evaluation of potential inrapreneurs, Journal of Engineering & Technology Management, pp. 295327 Honig, B. (2001). Learning strategies and resources for entrepreneurs and intrapreneurs, Entrepreneurship Theory and Practice , 26(1), pp. 21-35. Istocescu, A. (2006). Intreprenoriat si intraprenoriat in Romania, Editura ASE, pp. 67-85 Review of International Comparative Management Volume 12, Issue 5, December 2011 975 8. Levesque, M. & Minniti, M. (2006). The effect of aging on entrepreneurial behaviour, Journal of Business Venturing, 2006. 9. Malek, M. & Ibach, P. K. (2004).Entrepreneurship. Prinzipien, Ideen und Geschaftsmodelle zur Unternehmensgrundung im Informationszeitalter, dpunkt. verlag, pp. 105-113 10. Merrifield, D. B. (1993). Intrapreneurial corporate renewal, Journal of Business Venturing, pp. 383-389 11. Molina, C. & Callahan, J. L. (2009). Fostering organisational performance. The role of learning and intrapreneurship, Journal of European Industrial Training, 33(5), pp. 388-400. 12. Nicolescu, O. & Nicolescu, C. (2008). Intrepreno riatul si managementul intreprinderilor mici si mijlocii, Editura Economica, pp. 52-59 976 Volume 12, Issue 5, December 2011 Review of International Comparative Management