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What is Intrapreneurship?
Intrapreneurship refers to the practice of encouraging employees within an organization to act like entrepreneurs by developing new ideas, products, services, or processes while using the company’s resources and support.
Definition
Intrapreneurship is an organizational approach that empowers employees to innovate, take initiative, and create new value from within an existing company.
Key Takeaways
- Encourages innovation inside established organizations.
- Uses internal resources while fostering entrepreneurial thinking.
- Helps companies stay competitive and adaptable.
Understanding Intrapreneurship
Intrapreneurship allows organizations to harness the creativity and initiative of their employees without requiring them to leave and start independent ventures. Employees are given autonomy, incentives, and support to experiment with new ideas while aligning with company strategy.
Successful intrapreneurship programs often include innovation labs, internal venture funds, cross-functional teams, and leadership sponsorship. These structures reduce bureaucracy and allow ideas to move quickly from concept to implementation.
Unlike entrepreneurs, intrapreneurs typically do not bear personal financial risk, but they are accountable for results and performance within the organization.
Types or Variations
Product Intrapreneurship: Developing new products or services internally.
Process Intrapreneurship: Improving internal systems and workflows.
Strategic Intrapreneurship: Creating new business models or market approaches.
Real-World Example
Google’s “20% time” policy allowed employees to pursue innovative side projects, leading to products such as Gmail and Google News—classic examples of intrapreneurship.
Importance in Business or Economics
Intrapreneurship drives continuous innovation, improves employee engagement, and helps large organizations respond to disruption. It reduces the risk of stagnation and supports long-term growth without relying solely on acquisitions or external startups.
Related Terms
- Innovation Culture
- Corporate Entrepreneurship
- Organizational Agility
Sources and Further Reading
Quick Reference
- Focus: Internal innovation.
- Actors: Employees within organizations.
- Outcome: New value creation and competitive advantage.
Frequently Asked Questions (FAQs)
How is intrapreneurship different from entrepreneurship?
Intrapreneurship occurs within an existing organization, while entrepreneurship involves starting a new, independent business.
What enables successful intrapreneurship?
Leadership support, autonomy, incentives, and a tolerance for experimentation.
Do intrapreneurs share in financial rewards?
They may receive bonuses, recognition, or equity-like incentives, depending on company policy.
