Assignment No: 02

Submitted To: Sir Ahmed

Submitted By: Salman Zahid
Roll No: 16400920-008
Class: BBA (6th Semester)
Section: A
Subject: Entrepreneurship

UOG (Hafiz Hayat Campus)

The Difference between Entrepreneurship and Intrapreneureship:

Entrepreneurship:

Entrepreneurship is the process of designing, launching and running a new business, which is

often initially a small business. The people who create these businesses are called entrepreneurs.

Or entrepreneurship has been described as the "capacity and willingness to develop, organize and

manage a business project along with any of its risks in order to make a profit”. While definitions

of entrepreneurship typically focus on the launching and running of businesses, due to the high

risks involved in launching a start-up, a significant proportion of start-up businesses have to

close due to "lack of funding, bad business decisions, an economic crisis, be short of of market

demand or a mixture of all of these.

Intrapreneurship:

Intrapreneurship is the act of behaving like an entrepreneur while working within a large

organization. Or we can say, Intrapreneurship is known as the practice of a mutual management

style that integrate risk-taking and novelty approaches, as well as the reward and motivational

techniques, that are more traditionally thought of as being the province of entrepreneurship.

Following are some differences between both terms:

1. Type of Activity:

The intrapreneur’s activity has a restoring character and the entrepreneur’s activity has a

creative character.

2. Encountered Barriers:
 For the intrapreneur the company’s culture can be the main obstacle and the entrepreneur has

only one obstacle, a very powerful one the market.

3. Sources of Funding:

The intrapreneur uses the company’s resources that can be very large, where the entrepreneur

must look for personal funding sources, at the risk of losing his own assets.

4. Risk Taking :

In start-up entrepreneurship, the entrepreneur takes the risk in intrapreneurship and the

company takes the risk other than career-related risk.

5. Intellectual Rights:

In start-up the individual 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.

6. Rewards:

In a start-up potential rewards for the individual entrepreneur are theoretically unlimited

where in intrapreneurship an organizational structure is in place to limit

rewards/compensation to the entrepreneur/employee.

7. Error Management:

In a start-up venture, one strategic gaffe could mean instant failure; in intrapreneurship the

organization has more flexibility for management errors.

How Entrepreneurs make Decisions in Uncertainty by Considering Future:

A famous quote, “In any moment of decision, the best thing you can do is the right thing. The

worst thing you can do is nothing.” by Theodore Roosevelt.

As product managers, entrepreneurs, and leaders, we are often confronted with the challenge of

making decisions under uncertainty. This is especially true in situations where we are trying to

decide something based on the external environment—market trends, customer needs, or

competitor reactions. To be an effective leader, however, it’s important to be able to make the

right decisions in a timely manner, despite the uncertainty. It is possible to assume that

entrepreneurs would differ in their subjective ability to identify a venture idea depending on its

level of uncertainty. One might wish to inves- tigate whether these differences are caused by

entrepreneurs’ individual inborn abili- ties, or if they result from the differences in competence

acquired throughout indi- viduals’ business life. One may also ask questions of whether the

nature and level of entrepreneurs’ education would affect their ability to identify venture ideas.

So, cogni- tive properties, which entrepreneurs demonstrate in order to make opportunity identi-

fication1 decisions correctly, is an issue worth researching. Cognitive psychology and

entrepreneurship theory can provide guidelines in this endeavour. Cognitive psychology

contributes concepts and theories for theoretical framework, as well as methodological basis.

Entrepreneurs live with risk and uncertainty. They don’t have a choice. The future is up to them.

They are responsible for their successes and failures, and success is never permanent. Therefore,

Entrepreneurs have to learn to handle the risk and uncertainty of having to be responsible for

their company and employees.