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CAPE ENTREPRENEURSHIP
MODULE 1: THE ENTREPRENEURIAL MINDSET
Entrepreneurship Vs Intrapreneurship

Definitions
An intrapreneur is an employee with entrepreneurial skills and who is responsible for
developing innovative ideas, products, or services, and implementing innovative processes
within the company. Intrapreneurs work within an existing organization, and their focus is on
creating new revenue streams and helping the company stay ahead of its competitors.
Intrapreneurship, also known as corporate entrepreneurship, is the practice of a firm
supporting the development of a new venture within its existing structure to exploit a new
opportunity and create economic value.
An example of intrapreneurship is Google's 20% time policy, which allows employees to
spend one day a week working on their own projects. This policy has led to several
successful products, including Google News and Gmail, which were developed by employees
who were given the freedom to pursue their own innovative ideas.

Shared Traits Between Entrepreneur and Intrapreneur

Entrepreneurs and intrapreneurs share several key traits, including creativity, risk-taking, and
a willingness to innovate. Both types of individuals are passionate about their work and are
driven by a desire to succeed. They also possess strong leadership skills and are capable of
inspiring and motivating others to achieve their goals.

Difference Between Entrepreneur and Intrapreneur

Entrepreneurs typically work independently and have complete freedom to pursue their
vision. They are responsible for developing their business plan and securing funding, and
they have full control over the direction of their venture.
Intrapreneurs, on the other hand, work within an existing organization or company. While
they are free to develop new ideas and products, they must also work within the established
framework of the company. Intrapreneurs must navigate company politics and adhere to
corporate policies, which can limit their autonomy and freedom.

The Advantages of Intrapreneurship

Intrapreneurship can provide several benefits to both the individual and the company.
For the individual:
 It allows them to showcase their entrepreneurial skills within an established
company.
 They have the opportunity to develop new ideas, take risks and innovate
without having to worry about starting a new business from scratch.
For the company:
 Intrapreneurship helps to facilitate innovation, which in turn can reveal new
ways to improve efficiency as well as opportunities for creating new products and
services. This will help your organization to identify new opportunities and gaps
in the market and pursue them quickly thus gaining a competitive advantage.
 It can also lead to increased employee engagement and retention, as
employees who are given the opportunity to be intrapreneurs are more likely to be
satisfied with their jobs and remain with the company long-term.
 Intrapreneurship can foster a culture of innovation, collaboration, and learning,
where employees are encouraged to share ideas and feedback.
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Disadvantages of Intrapreneurship
Risk of failure: While not as great a risk as being an entrepreneur, intrapreneurship also
comes with its own set of risks. Not every project will be successful, and as such,
intrapreneurs should be prepared for some initiatives to fail and to be able to pivot their
efforts accordingly.
Limited spoils of success: While entrepreneurs reap all the financial benefits of
their innovations and new initiatives, for intrapreneurs all of those benefits go to the company
they work for. It therefore means that their efforts will ultimately benefit the company they
work for rather than just themselves.
Conflicts with resource allocation: Intrapreneurship requires an investment of money, time,
and resources. This often means diverting resources from other areas of the business that may
pose some friction within the organization.
Having to work within a rigid structure: Entrepreneurs have the freedom to operate as they
wish. However, since intrapreneurs are working within an existing company structure, they
will need to adhere to their rules and guidelines.
Lack of support: In order to be successful, intrapreneurs need to get buy-in from company
stakeholders. These stakeholders may or may not be enthusiastic about new initiatives and
offer less support or resources.
Resistance to change: Since intrapreneurs work within an established structure, it can be
difficult to get the company on board with any changes they would like to make.

Advantages of Entrepreneurship
Improvement in the Standard of Living: One of the driving factors of entrepreneurship is the
increased needs of customers for variety and luxury in goods and services. This motivates the
entrepreneurs to introduce unique need-based products. It could be electronics, clothing,
automobiles, or other products. Increasing the use of such new products in return improves
the standard of living of the consumer.
Reduces unemployment: Although entrepreneurship is a business run by one person or the
innovator, it involves a lot of factors and the use of resources which results in the creation of
organizations. Further, these organizations are built from the scratch with a number of skilled
people working together. This creates a lot of job opportunities.
Boost economic growth: Entrepreneurship enables new markets to develop in the form of
goods, services, and technology. It paves ways of generating wealth; these higher earnings
contribute to increased national income and tax revenues. It promotes innovation, self-
reliance and generates employment opportunities.
Creating Social Impact: The new products and services innovated by the entrepreneurs
encourage consumers to adapt to new trends and technology. It breaks away from the
dependency upon traditional ways of using products/services. They help the consumers in
having an open mind which results in better morale, the standard of living, and quality of life.
It increases the foreign exchange revenue with large-scale exports of the produced goods and
services.
Drives innovation and creativity: The key feature of entrepreneurship is innovation.
Entrepreneurship introduces new ideas and processes which helps to promote competition
and offers a wide range of choices for customers to choose from.
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Disadvantages of Entrepreneurship
Risk: Starting a new business involves a significant amount of risk. There is no guarantee of
success, and entrepreneurs may face significant financial losses if their business venture
fails.

Long hours: Starting and running a business requires a significant time commitment.
Entrepreneurs often work long hours and may have to sacrifice their personal time in order to
make their business venture successful.

Cash flow: Cash flow can be a significant challenge for entrepreneurs, especially in the initial
stages of starting a new business. It may take time for a business to generate consistent
revenue streams, and entrepreneurs may need to rely on personal savings or loans to fund
their business venture.

Factors Contributing to Enterprises Becoming More Entrepreneurial

The following factors can contribute to enterprises becoming more entrepreneurial:
Creativity: Entrepreneurs must be creative and innovative in their approach to business.
They should be able to identify new opportunities and develop new products or services that
meet the needs of their customers.
Tolerance for risk: Entrepreneurs must be willing to take risks and be comfortable with
uncertainty. They should be able to make decisions quickly and adapt to changing
circumstances.
Responsiveness to opportunities: Entrepreneurs must be able to recognize and respond to
new opportunities as they arise. They should be able to identify trends and changes in the
market and adjust their business accordingly.
Leadership: Entrepreneurs must be able to lead and inspire their team. They should be able
to communicate their vision and motivate their employees to work towards a common goal.
Ability to take advantage of the rights afforded to you: Entrepreneurs must be aware of
the legal and regulatory environment in which they operate. They should be able to take
advantage of the rights and protections afforded to them by law.

Types of Entrepreneurship
Survival entrepreneurship: This type of entrepreneurship is driven by the need to survive. It
is often started by people who have lost their jobs or are struggling to make ends meet. The
goal is to create a business that generates enough income to support themselves and their
families.
Speculative entrepreneurship: This type of entrepreneurship involves taking risks in the
hope of making a profit. It is often associated with new and untested ideas or technologies.
The goal is to create a business that has the potential to generate significant returns.
Dynamic entrepreneurship: This type of entrepreneurship is characterized by innovation
and creativity. It involves creating new products or services that meet the needs of
consumers. The goal is to create a business that is sustainable and profitable.
Social entrepreneurship: This type of entrepreneurship is focused on creating social value
rather than just generating profits. It involves creating businesses that address social or
environmental issues. The goal is to create a business that has a positive impact on society.
Necessity entrepreneurship is when an individual starts a business out of necessity, such as
unemployment or lack of other options. The primary motivation behind this type of
entrepreneurship is to generate income and survive.
Opportunity entrepreneurship, on the other hand, is when an individual starts a business to
pursue an opportunity that they have identified. The primary motivation behind this type of
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entrepreneurship is to create something new and innovative that has the potential to generate
significant profits.

Role of the Entrepreneur and the Intrapreneur on Enterprise Development

Entrepreneurs and intrapreneurs play a crucial role in the development of an enterprise. They
are responsible for driving the company’s growth by fostering openness and flexibility,
innovation, and proactivity.
Flexibility. Flexibility among entrepreneurs and intrapreneurs is very important to enterprise
development especially in today’s rapidly changing in industries that are constantly evolving,
such as technology or fashion. Flexibility allows entrepreneurs and intrapreneurs to be
adaptable, to respond quickly to changes in the market and to be able to pivot their business
strategy as needed. By being able to pivot your business strategy, you can stay ahead of the
curve and avoid falling behind your competitors.
Proactivity: Entrepreneurs and intrapreneurs need to have a proactive approach to business.
This will help them to stay ahead of the competition, constantly seeking out new
opportunities, and being willing to take risks in order to achieve desired goals.
Innovation: Entrepreneurs are driven by the desire to create something new and innovative,
and they are willing to take risks to achieve their goals. Entrepreneurs are known for their
ability to think outside the box and come up with creative solutions to problems.
Intrapreneurs, on the other hand, work within an existing company to develop new ideas and
projects. They are given the freedom to innovate and are encouraged to take risks.
Intrapreneurs are often highly motivated individuals who have a specific skill set and an
innovative vision that others in the corporation can get behind.
It is also important to note, that entrepreneurs play a crucial role in an environment of
change, chaos and complexity. They are often the ones who identify opportunities in the
midst of chaos and uncertainty, and take calculated risks to create new products, services, and
markets. In such an environment, entrepreneurs need to be adaptable, resilient, and
innovative. They must be able to navigate through ambiguity and uncertainty, and make
quick decisions based on incomplete information.
In an environment of competition, entrepreneurs are responsible for creating and running
new business ventures that generate profits. They foster innovation and drive market
competition, which ultimately benefits consumers.
In an environment of uncertainty, entrepreneurs must be agile and flexible to survive the
waves of unpredictability and volatility. They must anticipate challenges and address them as
quickly as possible to minimize risk. If they fail to adapt as the landscape changes, they can
lose their way and fall behind the competition.
In an environment of contradiction, entrepreneurs must be able to navigate the complexities
of conflicting demands and expectations. They must be able to balance the needs of their
stakeholders, including customers, employees, investors, and society at large. They must also
be able to reconcile the tensions between short-term and long-term goals, and between
profitability and social responsibility.

Entrepreneurship Versus Small Business Management

Entrepreneurship is the process of starting and owning a business venture, taking all the
potential risks and substantial profits. Entrepreneurs focus on innovation and creativity
when starting a business venture. They bring value to the market by solving people needs. In
comparison, Management is a team of employees who manages an existing business.
Entrepreneurs are the founders and creators of new products or services, while small
business owners start a type of business that already exists within the marketplace. For
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example, an entrepreneur creates a revolutionary new type of equipment to cut hair, whereas
a business owner opens a haircutting salon.

Entrepreneurship vs Small Business Management

Entrepreneurship Small Business Management
Entrepreneurs are owners Managers are employees
An entrepreneur is visionary and Managers work for salary and do not have to
takes all financial risks take any risks
Focuses on starting and owning
Manage ongoing business
businesses
The key Motivation for an Managers motivation comes from the power
entrepreneur is financial freedom that comes with their position
Entrepreneurs get profits as rewards Mangers get salary as a reward
An entrepreneur can be casual and Managers are very formal in every aspect of
informal the business
Management relies on the goals set by the
Entrepreneurs set goals
entrepreneur
Needs to take permission from business
Makes his/her own decisions
owners before taking a huge decision
Entrepreneurs are innovators Managers are executors