Page 2 - Lesson Note 4

(b) Second Generation Entrepreneurs: Who inherit the family business

through succession and pass it from one generation to another.
(c) Third Generation Entrepreneurs: Who have inherited business from
their grandparents and parents?

2. Difference between an Entrepreneur and an Employee:
(i) Meaning.

(ii) Works for.
(iii) Terms of work.
(iv) Risk factor.

(v) Degree of freedom.
(vi) Reward

3. Intrapreneurship:
 This word was first used by management consultant Gifford Pinchot in
the 1980s.

 The concept of ‘Intrapreneurship’ requires that managers inside the
company should be encouraged to be entrepreneurs within the firm

rather than go to outside. It is also known as ‘Corporate
entrepreneurship’.
 Intrapreneurs are usually employees within a company, who are

assigned a specific idea or project, with instructions to develop it in the
same manner as an entrepreneur does.

 Intrapreneurship has become a necessity in today’s corporate world
because of:

(i) It helps organization to grow.
(ii) It provides an environment conducive for innovation.
(iii) It helps organizations to effectively manage change.

(iv) It provides a platform to engage employees in work that is
challenging.