Intrapreneurship refers to the practice of developing new business models or innovative ideas within an existing organization to generate profitable new lines of business . Intrapreneurs, like entrepreneurs, nurture innovation, but they do it within the company they work for . It involves encouraging employees to think and act like entrepreneurs, taking risks, and driving innovation within the established company Intrapreneurship is seen as a way for established companies to foster entrepreneurship and stay competitive in rapidly evolving markets .
Benefits of Intrapreneurship
Intrapreneurship can bring several benefits to established companies. By nurturing innovation within the organization, companies can:
Generate new revenue streams: Intrapreneurship allows companies to develop new business models and products, leading to the creation of profitable new lines of business .
Stay competitive: Intrapreneurship helps companies stay ahead of the competition by fostering a culture of innovation and adaptability.
Attract and retain talent: Encouraging intrapreneurship can attract entrepreneurial-minded individuals who are motivated by the opportunity to drive innovation and make a meaningful impact within an established company.
Enhance employee engagement: Intrapreneurship empowers employees, giving them autonomy and the opportunity to contribute their ideas and make decisions.
Drive organizational growth: Intrapreneurship can lead to the development of new products, services, and business models that drive the growth of the organization.
Nurturing Intrapreneurship within Established Companies
To nurture intrapreneurship within established companies, several strategies can be employed:
Create a supportive environment: Establish a culture that encourages and supports innovation. This includes providing resources, time, and support for employees to explore and develop their ideas.
Empower and trust employees: Give employees autonomy and trust them to make decisions. This fosters a sense of ownership and encourages them to take risks and pursue innovative ideas .
Identify and support intrapreneurs: Identify employees who demonstrate entrepreneurial qualities and provide them with opportunities for growth and development. This can include mentorship programs, training, and access to resources.
Promote collaboration and cross-functional teams: Encourage collaboration and the exchange of ideas across different departments and teams. This can foster a culture of innovation and create opportunities for employees to work on innovative projects together.
Examples of Intrapreneurship
Amazon’s ‘Prime’: The idea for Amazon’s ‘Prime’ membership, which offers exclusive benefits such as two-day delivery, was formulated by a team of Amazon employees. This intrapreneurial idea was driven by the desire to provide customers with a more convenient and premium service .
Google’s ’20% Time’: Google famously implemented a policy called ’20% Time,’ which allowed employees to spend 20% of their work time on projects of their own choosing. This policy has led to the development of innovative products such as Gmail and Google News.