Final answer:
Intrapreneurship is the practice of promoting entrepreneurial behavior within an existing company, in contrast to entrepreneurship which involves starting a new business. Intrapreneurship allows employees to innovate within the company's structure, while entrepreneurship involves external market risks.
Step-by-step explanation:
Intrapreneurship refers to the practice of fostering an entrepreneurial spirit within an existing company, where employees are encouraged to develop innovative ideas and projects that can benefit the organization. Unlike an entrepreneur, who creates and manages a new business, an intrapreneur operates within the framework and resources of an existing company.
Entrepreneurship is characterized by setting up a business, which could be a sole proprietorship, partnership, or corporation, and facing the external risks and rewards of the market, whereas intrapreneurship focuses on innovation and strategic development within the safety net of a company's structure.
While entrepreneurs affect the business cycle by introducing new businesses and contributing to the Gross Domestic Product (GDP), intrapreneurs contribute to the organization's productivity and, thereby, its competitive edge in the market.