Intrapreneurship is a business system in which employees in an organization are encouraged to take risks and develop ideas and techniques to benefit the companies they work for. In other words, employees in an intrapreneurship are encouraged to act like entrepreneurs. They are given a lot of freedom and allowed to experiment to solve a given problem. Intrapreneurs are instrumental to a company’s growth; they circumvent the bureaucracy as they are given the freedom to experiment with many ideas. Unlike entrepreneurship, in which the business risk is borne by the entrepreneur, in intrapreneurship, the business risk is borne by the company. Intrapreneurship adopts a ‘startup’ style of business management. There is lot of flexibility and risk taking, and lots of ideas are being developed. In this article, the major advantages of intrapreneurship will be fully examined. The following are the main advantages of intrapreneurship.
In an intrapreneurship, more room is given for innovation. Since employees are encouraged to act like entrepreneurs, they are given the chance to develop their ideas in their own way instead of following the normal business process. Employees can use the company’s resources to experiment and develop new ideas that will benefit the organization. Through this business system, companies are able to set the right context for development. The right people are given a chance in the right environment, an environment which supports out of the box ideas.
Entrepreneurs may be limited in the business world by a lot of factors, like capital; this results in a lot of brilliant ideas going to waste. However, in intrapreneurship, employees are placed in the perfect environment suitable for developing new projects. Though intrapreneurship is more common with startups, large companies like Google and Intel have been known to adopt this business model. Though adopting full intrapreneurship isn’t feasible for large companies, many adopt a system where they allow employees to spend a certain percentage of their time on personal ideas and projects. Google AdSense, Google Maps, and Post-it-notes are all examples of ideas developed through intrapreneurship. Full intrapreneurship is however more feasible for small organizations.
Intrapreneurship is one of the fastest business systems which supports growth. It helps to create and maintain a set structure that supports revenue growth and is particularly useful for small business owners who are looking for ways to grow the company or widen their profit margins. It makes it easier for companies to recognize and capitalize on new opportunities before their competitors take advantage of them. It is usually the business structure behind new services and products many companies develop. Many big companies adopt this system in order to maintain momentum. It also helps safeguard the future of an established organization. Intrapreneurship gives mutual benefits to both the organization and the employee. The organization enjoys steady growth brought about by improved employee performance and fresh ideas, while employees develop leadership skills and also gain the experience needed in the corporate world.
3) Engagement and retention:
Disengaged employees cost companies a lot as disengagement translates to low productivity. In some organizations, employees complain about being underutilized; some eventually leave to look for companies where their skills are appreciated. Intrapreneurship provides an environment where employees are encouraged to apply their own ideas. Employees will then become more eager to experiment and successfully develop new ideas. They are highly engaged and thus more productive under this business system. Employees do not have to face the bureaucracy and rigid internal processes of the normal business model thus leading to employee satisfaction. Intrapreneurship brings about a higher employee retention rate due to the high level of employee engagement. Also, potential employees are drawn to an organization which supports intrapreneurship.
4) Builds Leadership Skills:
Intrapreneurship is a business model which greatly builds leadership skills. In large organizations, the CEO or founder may not necessarily be the one behind many of their successful innovations, rather, some successful team projects are developed and completed by employees with leadership skills. Employees with an intrapreneural mind-set are often the best candidates to lead new projects. Intrapreneurship also allows employees to channel their entrepreneurship skills within an organizational setting. It properly develops employees with leadership traits. Such employees eventually grow to become key executives of the company.
5) Efficiency and Speed of Action:Another main advantage of intrapreneurship is speed. Projects involving new products and services are easily completed under this business system. Since the ideas are supplied and developed by the employees and the bureaucratic barrier has been removed, projects are completed sooner. Employees have the freedom to express their ideas freely without shouldering the risk. They are highly motivated to work since the idea was developed by them, thus increasing productivity. Also, companies do not have to waste time searching for new ideas.
In conclusion, intrapreneurship is a business model which offers ample benefits in the corporate world. It is a system that helps companies properly harness the creative power of their employees thereby fuelling growth. Companies can encourage intrapreneurship by creating a system that supports it in their organization. Employees should be encouraged to take risks and experiment new ideas without fear of backlash.
To identify your company’s current business strategy and to learn to execute possible appropriate strategies, read Business Strategy Essentials You Always Wanted To Know.