Individual entrepreneurship and social entrepreneurship
The differences between individual entrepreneurship and social entrepreneurship are perhaps more striking than their similarities. The first difference is that individual entrepreneurial actions are creative, while organizational entrepreneurship often focuses on recovery. Recovery measures often take place in the face of a downturn in large organizations, but organizational entrepreneurship can enhance growth and innovation in a traditional company. Organizational entrepreneurship can also be a modifier because it modulates the entrepreneurial culture in an organization that in the past had a completely vertical and hierarchical structure.
The process of delivering new services and products may be the result of organizational entrepreneurship, but its ultimate goal is to restore the entrepreneurial culture, while independent entrepreneurship creates a process or product that did not exist before. Another difference between individual and organizational entrepreneurship is the company’s competitors.
In entrepreneurship, the individual is a market competitor. What an independent entrepreneur does is remove market barriers to survival and competition. But in the case of organizational entrepreneurship, company culture is the primary competitor. Given this relationship, the company can block many of the entrepreneurial processes it has pursued. Therefore, in addition to overcoming labor market barriers, the organizational entrepreneur must also overcome organizational barriers.
The main difference between the two types of entrepreneurship
The third difference between the two types of entrepreneurship is perhaps the contradiction that exists between the two. In many cases, the parent company can be a friend instead of a competitor. If the relationship between the parent company and the newly established unit is good, the organizational entrepreneur will have access to the necessary capital through the parent company treasury. Although the company’s capital is limited and fundraising requires the approval of managers at various levels, but if there is a possibility or opportunity to undertake risky activities, the organizational entrepreneur is funded by the parent company. While the individual entrepreneur must either use his personal wealth or try to obtain capital from various external sources.