An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. Unlike an entrepreneur, who may face significant personal risk and reward, an intrapreneur benefits from the resources and capabilities of an established organization.
Key Insights
- An intrapreneur fosters innovation internally to enhance their company’s future.
- The term “intrapreneur” combines “internal” and “entrepreneur,” first coined by Gifford and Elizabeth Pinchot in 1978.
- Intrapreneurs enjoy autonomy on projects that can significantly impact the company.
- Over time, successful intrapreneurs may become entrepreneurs and establish their own ventures.
- They are highly motivated, possess specific skill sets, leadership qualities, and an innovative vision.
The Essential Roles of Intrapreneurs
Intrapreneurs are entrusted with the freedom and resources to develop special projects or ideas within the company. They differ from entrepreneurs in that their work improves an existing organization rather than creating a new one from scratch. An intrapreneur’s broader scope may involve radical changes to traditions, processes, or products.
The Evolution of Intrapreneurship
The concept of intrapreneurship blends ‘internal’ with ’entrepreneur.’ First introduced in the 1978 white paper “Intra-Corporate Entrepreneurship” by Gifford and Elizabeth Pinchot, it gained wider recognition through a 1985 Time magazine article, “Here Come the Intrapreneurs.”
The Advantages of Intrapreneurship
Intrapreneurs have the freedom to explore novel policies, technologies, or applications that boost a company’s performance. As they hone their problem-solving skills, intrapreneurs can eventually transition to entrepreneurship. They’re granted autonomy, freed from day-to-day deliverables, to synthesize trends, plan futures, and stay ahead of competitors.
Intrapreneurs often ascend to executive levels, understanding the business deeply and fostering further growth and innovation. Their initiative nurtures talented colleagues, knitting a fabric of innovative thinking throughout the company.
Characteristics that Define an Intrapreneur
According to the foundational whitepaper by Pinchot, key principles for intrapreneurs include:
- Risking personal value, such as time or financial sacrifice.
- Equitable sharing of project rewards between corporations and intrapreneurs.
- Building capital-like resources within the corporation.
- Earning and maintaining corporate independence.
Intrapreneurs are dynamic individuals willing to juggle regular assignments with new ventures. They take calculated risks, interpret market trends, and push boundaries, driving innovation.
A Stellar Example of Intrapreneurship
Healey Cypher’s journey at eBay is a shining example. Within a year, he identified a gap—eBay’s lack of a physical retail presence. After discussing with eBay’s CEO, Cypher’s team developed interactive storefronts for major brands like Toys"R"Us, TOMS, Sony, and Rebecca Minkoff, eventually leading to his rise as eBay’s Head of Retail Innovation.
Comparing Entrepreneurs and Intrapreneurs
While entrepreneurs create businesses from the ground up, intrapreneurs innovate within existing corporations. Intrapreneurs drive forward-thinking strategies and practices to sustain and transform their organizations.
FAQs on Intrapreneurship
Who is called an intrapreneur? Employees who are given the freedom to innovate within their company.
What is the role of an intrapreneur? To explore and implement new policies, technologies, or applications to enhance company performance.
What embodies the intrapreneurial mindset? A vision for significant change within established company frameworks, bringing relevant skills and experience to the table.
Path to Becoming an Intrapreneur
High-performing employees often become intrapreneurs, exploring new avenues for company innovation. However, intrapreneurship isn’t always assigned; individuals with innovative ideas can take the initiative to develop them before pitching to senior leadership.
Conclusion
The role of intrapreneurs is pivotal yet often overlooked. They marry the freedoms of entrepreneurship with the support of an established corporation. This unique blend drives both personal and organizational growth, ensuring companies stay innovative and ahead of the competition.
Related Terms: Entrepreneur, Business Innovation, Corporate Development.
References
- MIT Management Sloan School. “Intrapreneurship, Explained”.
- Google Drive. “Intra-Corporate Entrepreneurship”.
- Time. “Here Come the Intrapreneurs”.
- eBay. “eBay Inc.’s Healey Cypher Named to SVBJ’s 40 Under 40 List”.
- LinkedIn. “Healey Cypher”.
