Intrapreneur (intrapreneurship)

DefinitionAn intrapreneur is an employee who is given the authority and support to create
a new product without having to be concerned about whether or not the product
will actually become a source of revenue for the company. Unlike an
entrepreneur, who faces personal risk when a product fails to produce revenue,
an intrepreneur will continue to receive a salary even if the product fails to
make it to production.
He is a manager within a company who promotes innovative product
development and marketing.

5 characteristics of successful
intrapreneurs
Intrapreneurs work within large organisations while behaving like
entrepreneurs. Initially the term was coined to describe teams
within large organisations who were given the freedom to
innovate and approach issues as entrepreneurs, though still
operating within the business. The term can also be applied to
successful franchise or license business owners. Running your
own business in this way means that you can combine the
freedom of an entrepreneur with the security of a business
system that has been proven to work. As a business owner you
have autonomy for what you do, but with less of the risks
associated with being out there on your own.

Characteristics of an intrapreneur include:

Self-Reliance relying on their capability,

judgement and resources. Can confidently make their
own decisions and take responsibility for the
consequences.

Resilience a combination of strength and

flexibility, strong self-belief and determination plus an
open minded approach to their business.

Courage be prepared to take risks. All businesses

involve some degree of risk, in a world where the
pace of change is so rapid even large and well
established businesses are open to risk of failure.
Your research into business opportunities will help
you to reduce risk, and once you start working on
your own you will be responsible for the level of risk
you are prepared to take.

An appreciation of synergy the strength that

comes from a team of individuals working as one,
within one system, learning from each other.

Adaptability being able to fit into the franchise

system and way of working.

ROLE AND IMPORTANCE

Intrapreneurship is entrepreneurship in the corporate world.
There are lots of reasons why Intrapreneurship is important. Here are 5
reasons why.
1. Growth: During the economic downturn most companies stopped
investing in the future. Now they are sitting on piles of cash. They know
they need to grow, they just arent sure how. Intrapreneurship answers the
question of HOW!
The goal of Intrapreneurship is to create the entrepreneurial mindset and
infrastructure needed to support growth. It takes a systems view of growth.
It is a framework for transformation.
Intrapreneurship helps organizations generate new business growth.
2. Innovation: Innovation is the key element in providing aggressive top
line growth. But doing one or two innovation initiatives a year will not
support or sustain innovation. Organizations need to be innovating all the
time. Failure rates for innovation are still high, 50% to 90%.
Innovation alone is not enough. Organizations need to set the context for
innovation; the right people, the right processes and the right environment.
Innovation and intrapreneurship are entwined, they are tied together. You
need both to be successful.
Intrapreneurship provides an environment to support and sustain
innovation over time.

3. Leadership: Research has identified leadership as the key predictor of

innovation success. Yet a majority of CEOs to not feel like they have the
capabilities inside their organizations to achieve their growth agenda. The
skills and capabilities that propelled most executives to the top in the past
are not the skills required to build new growth businesses. Only 4% of
leaders are intrapreneurial.
Intrapreneurship requires a new set of competencies and behaviors.
Intrapreneurial leaders think and act differently, they have different
motivations and aspirations, and they prefer working in different work
environments. It is this differentiation that makes them the perfect
candidate to lead new growth initiatives.
Intrapreneurship is the one of the best ways to attract and retain your
mostentrepreneurial leaders.
4. Change: Change is one of the least understood and under developed
management disciplines. Most studies report a 60% 70% failure rate
when it comes to change initiatives. Risk adverse cultures and resistance to
change impede an organizations ability to grow.
Intrapreneurial leaders are change agents. They blaze new trails. They
become the very change they wish to see. Not just driving change, but
modeling change so others can change as well.
Intrapreneurship enables organizations to effectively accelerate and
manage change.
5. Engagement: Intrapreneurship provides a platform to engage
employees in work that is challenging and meaningful. Intrapreneurs are
highly engaged in their work. Their passion and determination inspire

others to get involved and try new things. As they grow, the organization
grows.
Intrapreneurship helps employees stretch and grow while keeping them
engaged.
Intrapreneurship has become a critical imperative for all organizations and
a survival strategy for others. Organizations that have embraced
Intrapreneurship have achieved higher financial returns, increased
productivity, more innovation and higher levels of employee engagement.

Difference between an Entrepreneur and an

Intrapreneur:
Bases of
Difference

Entrepreneur

Intrapreneur
But, an

An entrepreneur intrapreneur is
is independent dependent on the
1.

in his

Dependency operations.

entrepreneur, i.e.,
the owner.

An entrepreneur
himself raises
funds required

Funds are not

2. Raising of for the

raised by the

Funds

enterprise.

intrapreneur.

3. Risk

Entrepreneur

An intrapreneur

bears the risk

does not fully bear

involved in the

the risk involved in

business.

the enterprise.
On the contrary,
an intrapreneur

An entrepreneur operates from

operates from
4. Operation out-side.

within the
organisation itself.