What are intrapreneurs?
An “intrapreneur” is an employee within a company assigned to develop innovative new ideas or projects. While the entrepreneur faces high risks and can benefit significantly from the project’s success, the intrapreneur does not have to bear the same financial risks or lack of resources.
Instead, they have the company’s resources and infrastructure available to support the development of an idea from the inception stage to an actual product or service in the market. This allows the intrapreneur to focus on innovation and drive internal growth in an environment that already has the infrastructure and support from the parent company.
Origin of Intrapreneurship
The term “intrapreneur” is a combination of the words “internal” and “entrepreneur”. The term was first proposed in 1978 by married couple Gifford Pinchot III and Elizabeth S. Pinchot in a white paper titled “Intra-Corporate Entrepreneurship” for the Tarrytown School for Entrepreneurs.
After this article was published, the term began to be widely used in academic research. In February 1985, Time magazine’s “Here Come the Intrapreneurs” article helped spread the term further. Gifford Pinchot, a management consultant, has noticed this trend and suggests that if employers change their attitudes and allow employees with beneficial ideas to develop within the business, this will not only help break the paralysis but also provide a higher return on investment.
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Characteristics of an Intrapreneur
Intrapreneurs possess special qualities that help them overcome challenges and foster innovation within the organization. These qualities not only help them succeed in developing new projects but also contribute to the company’s sustainable development.
Startup mindset
What makes an intrapreneur is the startup mindset. A startup mindset is the ability to think and act like an entrepreneur, whether in the context of a large company or when starting your own business. It includes opportunity identification, innovation, creativity, and a willingness to take risks to achieve goals.
People with a startup mindset are often proactive, confident, and not afraid to test new ideas. They see challenges as opportunities for improvement and growth, always looking for ways to optimize and create added value. Entrepreneurial thinking helps individuals develop and promotes progress and creativity in the organization.
Adaptive and flexible
Adaptability and flexibility are two important characteristics of an intrapreneur. Adaptation is the ability to adjust and change working methods, thinking, and actions to suit new situations, market fluctuations, or changes in company requirements. Flexibility is working effectively in various situations, using multiple skills and methods to achieve goals.
A flexible and adaptive intrapreneur can easily switch between tasks, adjust strategy when times get tough, and quickly find creative solutions to complex problems. Rigid processes do not bind them but are always ready to change to meet actual needs. This helps them not only survive but also thrive in an ever-changing business environment.
Ability to solve problems
The problem-solving ability of an intrapreneur is an important factor that helps them overcome challenges and create value for the business. When faced with a problem, they start by gathering information from multiple sources and listening to opinions from stakeholders to clearly define and deeply understand the problem.
Then, they analyze the situation to find the root cause, often brainstorming to come up with many possible solutions. Intrapreneurs are not afraid to test solutions on a small scale to evaluate effectiveness before widely deploying them. They monitor and measure results, adjusting measures as necessary to ensure goals are achieved. They turn each problem into an opportunity for improvement and creativity, thereby promoting the sustainable and practical development of the organization.
Focus on results
The results-focused qualities of an intrapreneur are demonstrated through determination and constant effort to achieve the highest level of achievement. They always set clear and strict goals and do not accept stopping in any form.
With strategic thinking and specific planning, they ensure that all efforts and activities are directed towards the common goals of the organization. High focus helps them not only overcome challenges but also come up with creative solutions, bring optimal results and bly contribute to the sustainable success of the company.
Ability to self-study and develop
The ability to self-study and develop is one of the essential characteristics of an intrapreneur. They are always ready to learn and update new knowledge to respond to rapid changes in the market and technology. By setting personal goals and developing their technical and soft skills, they continuously strive to improve their capabilities and achieve sustainable success. Their dedication and automation in learning help them not only master their work but also drive innovation and growth within the organization.
Time management
The ability to manage time is a key quality of a successful intrapreneur. They know how to prioritize work according to importance and urgency and allocate reasonable time for each task to achieve the highest efficiency. Setting specific goals and detailed planning ensures that all tasks are completed on time without causing undue pressure.
They also know how to organize and manage effective meetings, optimizing time and resources to satisfy employees and partners. Their organization and flexibility in handling unexpected situations help them maintain ingenuity and creativity in all business activities.
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Risks of an Intrapreneur
Internal entrepreneurs may face risks such as internal competition, lack of resources, high-performance pressure, and conflicts over intellectual property rights. Overcoming these challenges requires them to have clear plans and strategies for sustainable development.
Resistance from colleagues
Resistance from colleagues due to competition is a significant risk for the intrapreneur. When an intrapreneur comes up with innovative ideas, he or she may encounter competition from colleagues who fear losing status or feel threatened by the potential success of the project.
These colleagues may be concerned that innovation will highlight the achievements of the intrapreneur, leading them to intentionally obstruct or not cooperate. This competition not only causes internal conflicts but also reduces project efficiency. To overcome this risk, intrapreneurs need to maintain their opinions and spirit of criticism while continuing to promote ideas persistently and strategically.
Lack of resources
Lack of resources is one of the main risks that intrapreneurs often face. Despite the availability of resources from the enterprise, innovation projects may encounter shortages for a number of reasons, such as prioritization of resources to other organizations’ main activities or lack of understanding and support from resource management staff.
Another reason could be the innovation project’s misalignment with the organizational strategy, causing it to not receive high priority. This leads to innovation projects not being given the necessary resources, causing limitations in implementation and sometimes leading to failure.
To overcome this risk, the intrapreneur needs to convince and clearly explain the urgency and potential for success of the project, as well as propose effective resource management options to ensure that the project is successful. The project is fully supported and can be implemented successfully.
Risk of failure
The risk of failure of an innovation project can have serious implications for the individual intrapreneur and the organization. For individuals, failure can lead to loss of reputation and self-confidence and severe psychological pressure. For organizations, failure can lead to lost market opportunities and financial losses while also affecting organizational culture by reducing trust and willingness to try new ideas.
Effective risk management and detailed planning are necessary to mitigate this impact, along with b support and leadership from managers to learn and recover from the encountered failure.
Intellectual property rights risks
Intellectual property rights risk is a serious challenge that intrapreneurs often face when implementing innovation projects. When developing new ideas, they are at high risk of intellectual property rights disputes from the organization. This can include conflicts of interest such as copyrights, trademarks and patents, which can lead to disputes about who owns the property and economic rights.
They may also face the risk of losing control over ideas when the organization decides to use or change ideas without their consent. To minimize this risk, intrapreneurs need to establish clear contracts regarding intellectual property rights, protect and register rights accurately, and build b collaborative relationships with the organization to ensure that both parties benefit from innovative ideas in a fair and sustainable way.
Opportunities of Intrapreneurship
While facing many risks, such as internal competition and lack of resources, internal entrepreneurs also have many opportunities to promote innovation and progress within the organization.
Personal and professional development
Personal and professional development is one of the critical opportunities for intrapreneurs. Participating in innovation projects helps them expand their professional knowledge and develop new skills such as project management, leadership, and creative thinking.
This process enhances individual capabilities and creates value for the organization. Intrapreneurs can learn from challenges and successes, improving themselves and preparing for future advancement opportunities.
Contribute to the organization
Contributing to the organization is one of the important opportunities for an intrapreneur. When implementing innovation projects, they can bring significant value to the organization by creating new products and services or improving existing processes.
This contribution not only helps the organization achieve its business goals but also improves operational efficiency and competitiveness in the market. In addition, the success of these projects can also promote a culture of innovation within the organization, encouraging creativity and an entrepreneurial spirit in other employees.
Create a personal mark
Making a personal mark in your career is a great opportunity for an intrapreneur. When they succeed in implementing innovation projects, they benefit the organization and build credibility and reputation for themselves.
These achievements can be included on their CV, highlighting their leadership, creativity and project management abilities. Success in projects helps them stand out in the organization and opens up many opportunities for advancement, career development, and creating a clear and solid career path. These results confirm their abilities and create a solid foundation for a long-term career.
Take advantage of available resources
Taking advantage of available resources is a great opportunity for intrapreneurs, especially those without capital. When working in their current organization, they can access finance, human resources and facilities without personal investment.
This helps them implement creative and innovative ideas effectively without worrying about raising external capital. Taking advantage of available resources minimizes not only financial risks but also creates favorable conditions for the development and success of projects, helping them build their careers and achieve achievements without facing great financial pressures.
Learn from failure
Learning from failure is an important opportunity for intrapreneurs because only when they encounter failure do they have the opportunity to look back and realize their mistakes.
These experiences help them learn valuable lessons from which they can adjust and improve their strategies in the future. Learning from failure helps them develop risk management skills and promotes creativity and continuous improvement. Thanks to that, they can avoid previous mistakes and achieve more sustainable success in their careers and daily work.
What is the difference between an entrepreneur and an intrapreneur?
To more clearly distinguish the difference between an entrepreneur and an intrapreneur, let’s consider the following factors.
Definition
An entrepreneur: an individual who creates and operates a new business, often taking on financial risks and managing every aspect of the project.
An intrapreneur: an employee within an existing organization who develops innovative ideas within the framework of the parent company, using available resources and support.
Objective
- An entrepreneur: Aim to establish and grow new businesses, ensuring financial success and independence.
- An intrapreneur: Focus on creating innovative and value-enhancing projects within the current corporate environment while leveraging available resources and infrastructure.
Funding source
- An entrepreneur: Seek capital from investors, borrow or use personal money to start and develop a new business.
- An intrapreneur: Capital support is available from the parent company, including salaries, budgets and other financial resources to implement innovative projects in a corporate environment.
Duty
- An entrepreneur: Ensuring every aspect of the business, from strategic development, financial management, and human resource management to marketing and product/service development.
- An intrapreneur: Research the market, propose creative solutions, and promote new projects and products without having to worry about comprehensive business management issues.
Risk
- An entrepreneur: Subject to high financial risks, business failure can lead to loss of assets and even personal liability.
- An intrapreneur: May face policy risks and internal competition within the organization when proposing innovative projects.
Motivation
- An entrepreneur: Self-motivated by personal ambition and desire to innovate and succeed in your business.
- An intrapreneur: Career advancement, salary, and benefits from the company help them maintain and develop their careers in a stable and safe environment.
Example of a successful intrapreneur
Below are some examples of successful internal projects worldwide at large corporations.
Apple Macintosh
The internal startup within Apple in the 1980s was led by Steve Jobs and a team of 20 company engineers. This group can operate independently and creatively, with a high entrepreneurial spirit. Together, they developed the Macintosh computer, a highly competitive product in the personal computer industry.
The Macintosh provided a more advanced and easier-to-use graphical interface and marked an important breakthrough for Apple. Investments in internal creative teams and research and development have helped position Apple as a technology and innovation leader.
Post-It Note
Starting from research on adhesive materials at 3M in the late 1960s, Dr. Spencer Silver discovered a lightweight adhesive that could be reused without causing stains. He tested and tried to reach the market with the idea of making b bookmarks but was unsuccessful.
Then, his colleague Art Fry, inspired by the need to make bookmarks while singing in church, came up with the idea of using this lightweight glue for sticky and removable notes. The success of Post-it Notes is an outstanding example of intrapreneurship, emphasizing the value of experimentation and innovation in a corporate environment.
Sony PlayStation
The internal genesis of Sony PlayStation began in the early 1990s when engineer Ken Kutaragi at Sony Computer Entertainment proposed the idea of developing a video game console that could compete with Nintendo and Sega. Although initially opposed by Sony leaders, Ken Kutaragi persevered and eventually received sponsorship for the project.
PlayStation launched in 1994 and quickly became a huge success, revolutionizing the gaming industry with its high-quality 3D graphics and engaging gameplay. PlayStation’s success affirmed internal innovation and helped Sony become a big name in the electronics industry, paving the way for subsequent PlayStation versions.
Google Gmail
Gmail began in 2001 when engineer Paul Buchheit was tasked with developing a new email service to compete with Hotmail. Buchheit came up with the idea of providing large storage capacity to users, which was unprecedented at the time. He also introduced the concept of categorizing emails by thread, making it easier for users to follow conversations and integrating a powerful search function.
Gmail went public in 2004 and quickly became one of the most popular email services, helping cement Google’s reputation as a company focused on user experience. Gmail’s success emphasizes the importance of taking calculated risks and investing in promising project ideas.
Flamin’ Hot Cheetos
The in-house startup of Flamin’ Hot Cheetos began in the 1980s when Richard Montañez, a janitor at Frito-Lay, noticed a lack of spicy snack products for the Latino market. He proposed this idea to the CEO, added homemade seasoning to Cheetos, and promoted the product to the community.
The unique packaging design with a flame image also helps the product stand out. Flamin’ Hot Cheetos quickly became Frito-Lay’s best-selling product in multicultural markets. This success brought promotion to Montañez and emphasized the importance of taking risks and persistently pursuing innovative ideas.
McDonald’s Happy Meal
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Happy Meal began in the 1970s when Bob Bernstein, a marketing manager at McDonald’s, was tasked with attracting families with children to the chain. He came up with the innovative idea of the Happy Meal, a small children’s meal that includes a burger or chicken nugget, fries and a toy.
Toys are a game changer, turning Happy Meal into a fun and engaging experience for kids. Launched in 1979, Happy Meal quickly became a huge success, demonstrating the importance of understanding customer needs and continuous innovation.
Facebook Like Button
The internal project of the “Like” button on Facebook began in 2009 when Mark Zuckerberg and his team introduced the “Awesome” button, later changed to “Like.” This button is designed to increase user engagement on the platform and make Facebook more user-friendly by allowing users to express interest in posts or comments without leaving a response.
The “Like” button has revolutionized the way social media interacts, quickly becoming a popular feature. Its success emphasizes the importance of understanding and responding to market needs with innovative solutions.
Exploiting and developing the internal entrepreneur model is a great opportunity for organizations to not only promote creativity but also enhance competitiveness. Through the article, Replus hopes you will better understand the role and opportunities of intrapreneurs in the modern business environment.
