Understanding Intrapreneurship

Not everyone is fortunate enough to give wings to her entrepreneurial pursuits due to lack of capital and other resources. The concept of “intrapreneurship” comes to the rescue of such individuals. Intrapreneurship is basically practicing entrepreneurship within the confines of an organization. Intrapreneurship works well for various reasons—the foremost being that unlike entrepreneurial ventures, there is no substantial risk involved. Intrapreneurs are employed by an organization for a fixed remuneration and are involved with generating new ideas and converting them into profitable ventures with financial support and other help from the organization.

Difference between Entrepreneurship and Intrapreneurship

There are certain similarities and differences between entrepreneurs and intrapreneurs. Like an entrepreneur, even an intrapreneur exhibits characteristics such as independence, conviction, vision, passion to fulfil his dreams, etc. Entrepreneurs make their own decisions, whereas this is not the case with intrapreneurs. Intrapreneurs require approval from senior management in the organiaation.

Intrapreneurs do not like the hassles involved with launching their own start-up but are creative and like to think out of the box. “Entrepreneurship within the organization,” therefore, works brilliantly for such individuals. Another distinguishing factor when it comes to choosing between entrepreneurship and intrapreneurship is age. People in their 20s and 30s typically are more comfortable with their own venture and are willing to experiment, as opposed to people in their 40s and 50s who tend to become risk averse and hesitate to leave their stable jobs.

Intrapreneurship is a win-win situation for both the employee and the organization. The organization benefits from innovative ideas, and for the employee it satisfies her inherent self-actualization needs.

Success Stories

Many companies have benefited by adopting intrapreneurship in their organizations. 3M, for instance, gives its employees the leeway to spend about 15% of their work time working on new ideas; if the idea is feasible and appeals to the company, the project gets funded, too!

Even the Sony PlayStation is a product of an intrapreneur named Ken Kutaragi. The CEO showed faith and funded his idea. Needless to say, Kutaragi’s baby has gone on to become a huge hit on the market and has inspired many “me-toos” as well!

Intrapreneurship really can be summed up as an innovative and effective Human Resources strategy that can help in bringing about greater synergy between employees’ personal growth and overall organizational growth.

Karen Kleinwort is a certified professional coach who specializes in life, business and health coaching. Kleinwort also holds a BS in Business Management and an AA in Holistic Health & Fitness Promotion; additionally, she is a Reiki Master and CranioSacral Practitioner. Kleinwort is available for interviews and appearances. You can contact her at karen@therapyintransition.org or (877) 255-0761.