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Essay Questions · Q9

Q.Distinguish between entrepreneur, manager and intrapreneur.

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The entrepreneur, the manager, and the intrapreneur are three distinct roles that are sometimes confused because all three help run a business, but they differ on several grounds.

Status: The entrepreneur owns the enterprise. The manager is an employee/servant appointed by the owner(s) to run it on their behalf. The intrapreneur is also an employee, but of an existing organisation, given the freedom to act with an entrepreneurial mindset inside it.

Resources used: The entrepreneur mobilises own or borrowed capital independently. The manager works with resources the owner places at their disposal. The intrapreneur uses the resources of the existing (parent) organisation to develop the new venture.

Risk-bearing: The entrepreneur bears the full financial risk of the venture personally. The manager bears no personal financial risk. The intrapreneur bears little or no personal financial risk -- the parent organisation absorbs it.

Reward: The entrepreneur earns profit, which is uncertain and can even be a loss. The manager earns a fixed salary, largely certain regardless of the enterprise's results. The intrapreneur earns a salary, often with an added incentive tied to the internal venture's success.

Reference point: The entrepreneur reads opportunities directly from the market. The manager works within objectives already set by the owner. The intrapreneur reads the market but operates inside an existing organisation's structure. …

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