Entrepreneurship & Intrapreneurship (Cambridge (CIE) A Level Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
The Role of Entrepreneurs
An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success
Successful entrepreneurs can identify and pursue opportunities, create value for customers and build thriving businesses
These individuals bring a unique entrepreneurial spirit into the business, which helps drive it forward and expand
Howard Schultz was hired by Starbucks in 1982 as Director of Retail Operations and Marketing. He later left to start his own coffee company, but returned to Starbucks in 1987 as CEO. Under his leadership, Starbucks expanded globally and became one of the most recognised brands in the world
Marissa Mayer was brought in to lead Yahoo! in 2012 as CEO. She implemented several initiatives to revitalise the struggling company, including acquisitions, product improvements, and a renewed focus on mobile
Entrepreneurs fulfil important roles in business
Organising resources, including finance, facilities, people and equipment
Making decisions, both at the start and throughout the life of a business
Taking risks to maximise returns and maintain a competitive advantage
What do Entrepreneurs do?
They Organise Resources | They make Business Decisions | They take Risks |
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The Role of Intrapreneurs
An intrapreneur is an individual tasked with creating or improving innovative products or processes within an already-established business
Intrapreneurship involves empowering employees to think and act like entrepreneurs
The business encourages them to take risks, innovate, and develop new ideas and projects that may benefit the business
Businesses can tap into the creative potential of their employees and generate new products/services or processes that can drive growth and competitive advantage
This helps to create a culture that generates a sense of ownership and engagement among employees, which increases motivation and helps to retain top talent
To promote intrapreneurship, businesses may provide resources to employees or offer incentives/rewards for successful projects
Examples of Intrapreneurship in Business
Example | Explanation |
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Sony Playstation |
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3M |
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Intrapreneurs fulfil important roles in business that compliment those of the entrepreneur:
Innovation, including using resources in the most effective way, developing new ideas and processes and identifying new techniques
Organising operations by making day-to-day decisions that drive a business forward
Persuade business owners to take calculated risks and follow new paths
What do Intrapreneurs do?
They Innovate | They Organise Operations | They Persuade |
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Qualities of Entrepreneurs & Intrapreneurs
Entrepreneurs and Intrapreneurs require a unique set of characteristics and skills
Diagram: The Skills and Characteristics of Entrepreneurs & Intrapreneurs
The skills and characteristics required by entrepreneurs and intrapreneurs
Successful entrepreneurs and intrapreneurs tend to be very persuasive in their communication and decisive in their decision-making
Convincing lenders, investors and customers to support their business is central to achieving financial success
Developing new solutions to solve existing or emerging problems is a key intrapreneurial role that helps a business stand out from rivals and achieve success
During the 2020 COVID-19 pandemic, many businesses used their creativity to switch production techniques to cater for what the market wanted
E.g Harrogate Gin switched from producing gin to hand sanitiser
Starting a business is often the sole responsibility of a single entrepreneur, who will need to be able to solve problems with limited support
E.g. The owner of Gymshark, Ben Francis, started off the company by buying a sewing machine and making gym clothes in his parents garage with a few school friends
This led to the growth of a multi million pound company employing hundreds of people
Barriers to Entrepreneurship
Making the decision to set up and run a business is rarely easy
Entrepreneurs face a series of barriers that they must overcome if they are to make a success of an enterprise
Barriers to Entrepreneurship
Barrier | Explanation |
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Lack of finance |
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Lack of customers |
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Finding a suitable location |
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Lack of opportunities |
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Existing competition |
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The Distinction Between Risk & Uncertainty
Business uncertainty is when a business cannot predict what is going to happen or directly influence it
Uncertainty cannot be prepared for because it is unknown and cannot be measured
Factors which typically cause uncertainty to include:
Environmental factors such as the Japanese Tsunami in March 2011
Economic changes such as Covid lockdowns, Brexit or collapses in the banking system
The entry of new competitors
Changes in local and national legislation (laws)
Changes in the political party governing the country
Risk can be measured, allowing business owners to make informed decisions before taking action
Research, market insight and creating a business plan can help to reduce risk
E.g. Awareness of increased demand for music on vinyl, extensive market research and a strong business plan convinced entrepreneurs Joel Magill and Will Greenham to set up Smugglers Records in the small seaside town of Deal
Diagram: Risk versus Uncertainty
The difference between risk and uncertainty
Entrepreneurs have varying levels of risk they are willing to accept
Risk-averse entrepreneurs may prefer to start small and achieve slow growth
Some entrepreneurs may prefer to share risks with others in a partnership or protect their personal assets by forming a private limited company
Successful entrepreneurs can manage risk and quickly respond to uncertainty in the business environment
An Example of Entrepreneurial Response to Uncertainty
Brian Chesky (Co-founder) & Airbnb Response to the Covid-19 Pandemic |
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Business Enterprise & the Development of a Country
Government policy often includes support to entrepreneurs to encourage them to set up new businesses or take steps to grow their business
The Philippine government recognises the contribution that small businesses make to its economy and offers a range of incentives to entrepreneurs, including
Training programmes to equip business owners with the skills they need to operate an enterprise
A streamlined application process for low cost government-supported loans
Mentor initiatives where entrepreneurs are partnered with an expert who can provide advice on training and business development services
The Go Loka! project, which provides product development training, access to a marketing platform and promotional events
Exemptions from income tax and minimum wage law for a limited period
How Small Businesses Contribute to a Country's Economic Development
Increase the country's level of output to achieve economic growth | Improve choice and service for consumers |
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Reduce the level of unemployment | Businesses set up as social enterprises often support disadvantaged groups or improve communities |
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Examiner Tips and Tricks
A good way to explain the difference between entrepreneurs and intrapreneurs is to consider them in the context of risks and rewards.
Entrepreneurs risk their own money, reputation, time and resources but get to keep financial rewards for themselves, should they wish. Intrapreneurs take risks on behalf of a business - and the business for whom they work receive the rewards.
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