Entrepreneurship Vs...

Entrepreneurship
Unit 1 Mod. 1 Handout #2 Oronde Chase
Entrepreneurship vs.
Intrapreneurship
We have already established the definition of entrepreneurship to be, the process through which an
opportunity is recognized, the risks of investment is accepted and resources are combined to facilitate
the creation of added value or profit. While similar, 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. Meanwhile, an Intrapreneur
is a person who possess the mindset of an entrepreneur and ability to identify opportunities but does
not own the factors of production but instead is employed by a firm.
Organizations that want to survive, have to innovate, this means that firms need entrepreneurial
thinkers/intrapreneurs. They are the innovative thinkers, the risk takers who possess the skills to build
highly innovative industries. To distinguish the two, remember than an entrepreneur is risking his own
finances and resources with a venture(s) while an Intrapreneur is using the resources of the firm that
employed them.
Small Business Management

An entrepreneur is one who recognizes business opportunities, combines the necessary resources and
takes the risk to start a business. The small business manager simply keeps his business running. The
main difference between the entrepreneurial small-business owner and the small business manager is
simply, the willingness to engage in strategic, sometimes very risky innovative practices whereas the
managers of small-business ventures do not engage in such innovative practices.
Types of Entrepreneurship
 Survival- This type of entrepreneurship operates under a simple business structure and
minimal planning. The entrepreneur is focused on generating small but constant surplus
which would provide for subsistence. The objective would be to perpetuate the cycle so that
the business survives and provides income to ensure the entrepreneur’s survival; hence the
name. A typical example would be a market vendor.
 Lifestyle- Contrary to survival entrepreneurship, lifestyle entrepreneurship is based on the

entrepreneur building a business to provide the freedom and independence which they desire.
It more concerned with having control of their time and income as opposed to gaining
massive wealth. Some examples of this may be tailors and dance instructors.
 Dynamic Growth- Much different from the previous types of entrepreneurship previously
mentioned, this type is specifically of the intention to generate significant sales and grow
rapidly and also involves lots of planning and demands high personal involvement and very
strong leadership. The vision of this entrepreneur would most likely be to expand and build an
empire.
 Speculative- This type of entrepreneur is based on the realization of quick profits. They
accept risks, have keen insight and unique timing.
1
Entrepreneurship
Factors that Contribute to Successful Entrepreneurs
It goes without saying that profit is a great motivator and a top consideration for business
owners who pursue success, nevertheless some other factors include but are not limited to:
a. Continuous research and development
b. Having strong marketing strategies. Immense focus should be placed on Promotions,
customers, product quality and new markets.
c. Understanding financial statements.
d. Effectively managing financial resources (Keep costs down and manage cash flow.)
e. Knowing business depth-
It is also very important to gather necessary information on the product or service you
offer the market. Do research and development with an eye on maintaining a
competitive edge and provide value-added improvements.
Key Terms
 Entrepreneurship – The process through which an opportunity is recognized, the risks of

investment is accepted and resources are combined to facilitate the creation of added value or
profit. (While an entrepreneur is the person who recognizes opportunity, takes on a financial
risk and combines the necessary resources to create added value or profit.)
 Intrapreneurship- The process of an employee using their entrepreneurial skills for the
betterment of an organization/firm. (While an intrapreneur is a person who is employed by a
firm to use their entrepreneurial skills within the organization/firm.)
 Corporate Entrepreneurship- 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.
 Small Business Management- The procedure used by small business owners to operate. For
example, the business operates in a structured controlled manner and expects sales, profits
and growth to maintain its market position and the status quo of the owner.
Questions
True and False
1. Entrepreneurs actively pursue entrepreneurial activities and build contacts. ____

2. A small business is not necessarily entrepreneurial just because it is small. ____
3. Anyone can start a business. __
4. Anyone can start a successful business. ___
Review and discuss
Use any specific driver of contemporary entrepreneurship from this chapter and describe its
importance in today’s economy.
2
Entrepreneurship
MUST DO SOME READING ON: The Entrepreneurial Environment in the Caribbean and
Organizations in the Caribbean which support Entrepreneurial activity in the Caribbean Region.

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Entrepreneurship

Unit 1 Mod. 1 Handout #2 Oronde Chase

Small Business Management

 Lifestyle- Contrary to survival entrepreneurship, lifestyle entrepreneurship is based on the

Factors that Contribute to Successful Entrepreneurs

 Entrepreneurship – The process through which an opportunity is recognized, the risks of

 Corporate Entrepreneurship- The practice of a firm supporting the development of a new

True and False

1. Entrepreneurs actively pursue entrepreneurial activities and build contacts. ____

Review and discuss

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