Intrapreneur

By:

Arti

Arti is a specialized AI Financial Assistant at Invezz, created to support the editorial team. He leverages both AI and the Invezz.com knowledge base, understands over 100,000... read more.

Reviewed by:

Prash Raval

Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.

Updated: Jun 19, 2024

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

3 key takeaways

• Intrapreneurs are employees who champion innovation and take on entrepreneurial roles within their companies to develop new ideas, products, or services.
• They have the freedom to experiment and take risks, while still benefiting from the resources and support of the larger organization.
• Intrapreneurship can drive significant growth and competitive advantage for companies by fostering a culture of innovation and agility.

What is an intrapreneur?

An intrapreneur is an employee who acts like an entrepreneur within an established company. They identify opportunities for innovation, propose new ideas, and take the initiative to develop them into viable projects. Intrapreneurs are given the autonomy to manage their projects, often with access to the company’s resources, support, and infrastructure. This allows them to experiment and take calculated risks without the financial burden typically faced by independent entrepreneurs.

Importance of intrapreneurship

Fostering Innovation: Intrapreneurship encourages a culture of innovation within the company, enabling the development of new products, services, and processes that can drive growth and competitiveness.

Employee Engagement: By empowering employees to take initiative and contribute to the company’s success, intrapreneurship can enhance job satisfaction, motivation, and retention.

Agility and Adaptability: Intrapreneurs help companies remain agile and adaptable in a rapidly changing market by continuously exploring new opportunities and responding to emerging trends.

Resource Utilization: Intrapreneurs leverage the existing resources and capabilities of the company, making innovation more efficient and cost-effective compared to starting from scratch.

Example of an intrapreneur in action

Example: Google’s 20% Time Policy

Google is known for its “20% time” policy, which allows employees to spend 20% of their work time on projects that interest them and are not necessarily related to their main job responsibilities. This policy has led to the creation of several successful products, such as Gmail and Google News.

• Opportunity Identification: An employee at Google identifies a gap in the market for a more efficient email system.
• Idea Development: The employee uses their 20% time to develop the concept, prototype the product, and gather feedback.
• Resource Utilization: The employee leverages Google’s resources, such as computing power and access to expertise, to refine the product.
• Innovation Outcome: The project evolves into Gmail, which becomes one of the most popular email services globally.

This example demonstrates how intrapreneurship within an established company can lead to significant innovations and new business opportunities.

Challenges and considerations

Risk Management: Encouraging intrapreneurship involves accepting a certain level of risk. Companies need to balance the freedom given to intrapreneurs with appropriate oversight and risk management strategies.

Support and Resources: Successful intrapreneurship requires providing employees with the necessary support, resources, and time to develop their ideas. Without this support, even the best ideas may fail to materialize.

Cultural Fit: Companies need to foster a culture that supports creativity, experimentation, and tolerance for failure. This can be challenging in more traditional or risk-averse organizations.

Alignment with Company Goals: Intrapreneurial projects should align with the company’s strategic objectives to ensure they contribute to overall business goals and do not divert resources from core activities.

Related topics

• Entrepreneurship
• Corporate innovation
• Lean startup methodology
• Employee engagement

Explore these related topics to gain a deeper understanding of how entrepreneurial principles can be applied within established organizations, the benefits of fostering a culture of innovation, and the strategies for successfully implementing intrapreneurship initiatives.