Last updated on April 6th, 2024 at 02:05 am
In this article, I am here to discuss what is Intrapreneurship. And yes, it’s different from Entrepreneurship. It’s a new and emerging concept, which got more boost after the 2010 period.
In today’s world, where everyone wants to be an individual business man, create on based on their own ideas, The concept of Entrepreneur is boosted. But there are some people who want to produce and implement their ideas but don’t have enough funds of their own, they can’t afford to bear the risk, who can’t afford their own team, what should these people opt for? That’s where the concept of Intrapreneur originated.
What is Intrapreneurship?
Intrapreneurship is a concept where the organizations give their employees the freedom to act as an entrepreneur. Which means the employees have the freedom to share their ideas, work on those ideas inside of the organization.
An Intrapreneur is a person who is self motivated and has the skills of an entrepreneur. Organizations promote such individuals because they are beneficial for the organization as well.
For the individuals who can’t afford to be an Entrepreneur because of reasons such as funding, place, etc. this becomes a perfect solution. Here, they bear no risk in case the project fails, they get the freedom they want just as if they have their own firm and are also provided with sufficient funds.
Also there is a wide range of freedom in it, The Intrapreneur has to work for the benefit for the organization i.e. innovating the existing product or service.
Now, Let’s move on the next part of learning about What is Intrapreneurship i.e. The Importance of Intrapreneurship In Current times.
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Importance of Intrapreneurship
In these Times, organizations are looking for people with innovative minds that can provide something new to the organization. This becomes a perfect situation for both the Intrapreneur and the organization. The organization takes up the risk factor of these idealistic Intrapreneurs, providing them with funds for implementing their ideas. The reason organizations do this is so that their new ideas can be beneficial for the organization.
Let’s flip the situation and look at it. When an Organisation supports an Intrapreneur, they are basically getting an entrepreneur who works for their firm, providing ideas to the firm and working for them, it’s a win-win situation for both parties.
Intrapreneurs are Inventors. Even though they usually improvise and innovate existing products or services of the organization, these innovations they make are important. Because they are contributing to the advancement of human society.
Now onto the next part about What is Intrapreneurship, which is The Characteristics of Intrapreneurship.
Characteristics of Intrapreneurship
Innovative
Intrapreneurs are individuals who have their own ideas that they work on. They work on their innovative ideas’ magic on the existing products of the organization.
Rewards
For Intrapreneurs, they get the credit for their idea and work, whereas, the organization gets the profit part in their deal. Sometimes, depending on the deal, even the Intrapreneur is eligible to get a part of profit but not credit for their innovation. This depends upon the organization and the Intrapreneur made, but one thing is for certain, both share the Reward for this work.
Risk
An intrapreneur risks their conceptual factors such as time and ideas. Where the organization risks their capital and assets for an Intrapreneur.
Independence
Intrapreneurs work as an independent identity, which is different from the organization’s work. They indeed work for the organization and within it, but their work is independent and the Intrapreneur works separately with their ideas.
Now, let’s study the next part about What is Intrapreneurship? The Types of Intrapreneurship
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Types of Intrapreneurship
When we are studying about What is Intrapreneurship? We should be aware about the Types of Intrapreneurship.
Value Adding Intrapreneurship
Value Adding Intrapreneurship is the concept in which the Intrapreneur contributes to the organization directly. They work on the project related to the product or service the organization works on.
Spin Off Intrapreneurship
A Spin Off Intrapreneurship refers to the concept where the organization supports the Intrapreneur to work on their own innovative invention and product or services. The organization will work as the parent company of this branch, even though they work independently.
Next in this article about What is Intrapreneurship? Is Intrapreneurship vs Entrepreneurship.
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Intrapreneurship vs Entrepreneurship
Finally onto the question that confuses many people, the Difference between Intrapreneurship and Entrepreneurship.
Firstly, the very basic Difference between Intrapreneurship and Entrepreneurship is the working place.
Working Space
For Intrapreneurship, the Intrapreneur is a person who works in an organization and works according to them. So even though he/she has their freedom, they have to work inside the organizational extent.
On the other hand, An Entrepreneur is an individual who has no limitation to his/her working space. They have the freedom to choose where they want to work, in which condition and so on.
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Product
As much as you studied about what is Intrapreneurship in this article, you know that The Intrapreneur works in the organization and has a limitation. The limitation is that they have been innovative on existing products of the organization. Although, sometimes the organization lets the Intrapreneur work on their own product and give them their own company, they still come under the organization. So, an Intrapreneur primarily works on the products that are approved by the organization.
An Entrepreneur is free to choose the product or service they want to provide. Usually, that product is the base for their Entrepreneurship. They can customize these services according to them without anyone’s approval as they own the Firm.
Capital
For Intrapreneurship, its implies that the Capital required to fund the project, research, and production is provided by the organization that the employee works in. They overview the expenses of the project.
In Entrepreneurship, the Entrepreneur or the owner is the one who has to raise capital themselves. They either use up their own funds or they borrow capital from the market at their risk.
Risk
In Intrapreneurship, the organization bears the risk for the project under the Intrapreneurs. The organization takes up the responsibility for the fudging and providing assets for the project.
In the case of Entrepreneurs, they are the only one who bears the risk involved in the projects and business. Entrepreneurs are the ones who invest funds and assets in the business.
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Reward
In case of Intrapreneurship, The Intrapreneur and the organization both share the reward. The reward shared could be monetary in other forms.
For an Entrepreneur, as this person bears the whole risk on him/her, the reward is accordingly. The Entrepreneur gets the whole profit as their reward.
Finally, onto the next part about What is Intrapreneurship, The Benefits of Intrapreneurship.
Benefits of Intrapreneurship
Employee Potential
Intrapreneurship gives employees a chance to explore and show off their innovative ideas. Many employees who couldn’t show off their entrepreneurial skills get a chance to contribute their ideas to the organization without any risk. This gives rise to more and more individuals coming forward and pitching their ideas.
Innovation
As the employees present their idea, the organization gets an opportunity to invest and get something innovative for their organization. This ultimately also contributes to the society as they will also enjoy the benefit of that innovative product or service.
Competitive edge
As the organization keeps providing new innovations and products and services, the organization can really stay up in the market. Due to the new technology, the organization can stay up in the market against competition.
Opportunities
Due to Intrapreneurship, organization and the employee get the opportunity to show their potential off, and expand in the market. Employees who aren’t very fortunate get an opportunity to show the world about what they can offer.
The organization gets an opportunity to branch off in different markets with new products, and the employees get to work as an entrepreneur within the organization.
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FAQs
What is meant by an Intrapreneurship?
Intrapreneurship is a concept where the employee has the freedom to present and work on their ideas. It’s basically acting as an entrepreneur within an organization.
What is difference between Entrepreneurship and Intrapreneurship?
There are several factors that differentiate Entrepreneurship and Intrapreneurship, some of the major factors are risk and reward, Investment and Decision making power.
When was the term Intrapreneurship coined?
1978
The term Intrapreneurship was first coined in 1978 by Gifford Pinchot III.
Final Words
I believe that Intrapreneurship and Intrapreneurs is an amazing concept. This gives opportunity to people who are less fortunate, or who don’t like to risk the chance to experiment on their idea. This concept inspires and encourages people to come forward and present their ideas, improve their ideas and show the world what Beauty their mind has to offer to the world.
I hope this article is about What is Intrapreneurship? Was helpful to you. If you have any queries or suggestions, let me know in the comment box.