Chapter 3: Intrapreneurship
What is Intrapreneurship?
Entrepreneurial spirit doesn’t only thrive in the startup world; it’s also a powerful force within established businesses. This unique blend of entrepreneurship within the safety net of a larger organization is what we call intrapreneurship. It harnesses the creativity and passion of entrepreneurs, allowing them to innovate and drive change from within the organization they work for (LibreTexts, 2024).
The primary difference between the two types of innovators is their context—the intrapreneur acts within the confines of an existing organization. An intrapreneur is someone who operates like an entrepreneur but has the backing of an organization. See Figure 3.1 for an illustration showing the differences between intrapreneurship and entrepreneurship. Intrapreneurs and entrepreneurs both focus on innovation and take risks, but their approaches and circumstances differ significantly.
In their book Re-Inventing the Corporation, John Naisbitt and Patricia Aburdene cited intrapreneurship as a way for established businesses to find new markets and new products.
Steve Jobs also described the development of the Macintosh computer as an intrapreneurial venture within Apple.
In 1990 the concept was established enough that Rosabeth Moss Kanter of the Harvard Business School discussed the need for intrapreneurial development as a key factor in ensuring the survival of the company in her book When Giants Learn to Dance.
A Short History of Intrapreneurship
Gifford and Elizabeth Pinchot coined the term “intrapreneur” in the early 1980s. They developed the concept of intra-corporate entrepreneurship. In their model, individuals interested in pursuing intrapreneurial projects had to risk something of value, like a portion of their salary. If successful, the intrapreneur could sell the project for cash bonuses and intracapital. This capital could then be used to fund future projects. The Pinchots established a school for intrapreneurs based on the success of their methods in Sweden. In 1985 they published their first book Intrapreneuring, combining the findings from their research and practical applications.
The Intrapreneurial Organization
An intrapreneurial organization is one that seeks to systematically promote the spirit of intrapreneurship in targeted parts of the organization. Firms like Merck & Co., 3M, Motorola, Newell Rubbermaid, Johnson & Johnson, Corning Incorporated, General Electric, Hewlett-Packard, Walmart, and others have impressive track records of innovation. This shows that being big does not necessarily hinder intrapreneurship.
Knowing the challenges faced by entrepreneurs in established firms will help them apply their knowledge of entrepreneurship to corporate intrapreneurship.
Intrapreneurs have helped increase the speed and cost-effectiveness of technology transfer from research and development to the marketplace.
The following are some methods that have been used by businesses to foste