Intrapraneurship

What is it?  Intrapraneurs – These are generally creative people who work as entrepreneurs within corporations  Intrapreneurship – is being an entrepreneur while working in a corporation.  This generally refers to how employees take initiatives to do something good/new for the company without being told to do so

Intrapreneurship  Intrapreneurship focuses on the innovation and creativity of an individual. Whereby they transform their ideas into a profitable venture for the company.  Intrapreneurship is not a selfish venture. They follow Fayol’s principle of: Subordination of individual interests to the general interest.  The intrapreneur does this for the good and welfare of the company, not for personal gain. Intrapreneurs in general have pride in their work/job.

Motivations  Company’s can motivate intrapreneurship through formal and/or informal job design.  The position can be given a certain level of empowerment, which fosters and facilitates the introduction of new employee ideas.  Commonly, companies ignore the opinions of lower level employees, and only upper management or special departments are heard

Motivation  Intrapreneurs can also be brought out from working on big projects.  In general, during the idea screening and collaboration phases, employees are encouraged to act like entrepreneurs.  Innovative ideas are more likely to come to light as resources are no longer a limiting factor

Intrapreneurship  Intrapreneurship can be treated as entrepreneurship, however, there are some advantages:  Because an employee has an established company backing them up, they are able to work on their idea, revise it, and try it again until it is successful.  They can learn from their failures and build a successful venture

Intrapreneurship  From the perspective of the company, allowing intrapreneurship can help build employee relations and loyalty.  If a venture is a success, it can help change a static organization into a more dynamic one  Intrapreneurship fuels business growth and allows the company to gain a competitive advantage in their industry

Intrapreneurship  From the employee’s perspective, they are protected from liabilities and other forms of risks that entrepreneurs face in the case of a business failure  Opens career opportunities to employees and helps to retain them

Intrapreneurship  One of the most famous cases of intrapreneurship dates back to During the war, new aircrafts were being designed by intrapreneur Kelly Johnson, who eventually came up with 14 rules  In modern day, Steve Jobs considers his company one that fosters intrapreneurship. He was once quoted “a group of people going, in essence, back to the garage, but in a large company."

Intrapreneurship  As companies become big, they often struggle with innovation  Investors of large companies become more conservative  Company leaders become less entrepreneurial, employees are not encouraged to be innovative in fear of losing their jobs if they fail.

Intrapreneurship  How to foster intrapreneurship  Allow employees to have time each day/week that can be dedicated to thinking of new ideas  Removing any punishments related to failure  Hire people with entrepreneurial attitudes

Intrapreneurship