INTRAPRENEURSHIP
Back to GlossaryDefinition
A system that allows an employee to act like an entrepreneur within an organization. They are self-motivated, proactive, and action-oriented people who take the initiative to pursue the development of innovative products or services. These employees do not have a personal cost of failure, like entrepreneurs, since the organization absorbs losses.
Summary
Intrapreneurship is essentially 'entrepreneurship within a company' - it's when employees are given the freedom and resources to innovate and develop new ideas as if they were running their own startup, but with the safety net of working for an established organization. Think of it as having entrepreneurial spirit while being employed. Intrapreneurs get to be creative and take risks without personally losing money if their ideas don't work out, since their employer covers any losses. This system benefits both the employee (who gets to innovate) and the company (which gets fresh ideas and innovation from within).
Usage Context
Understanding intrapreneurship is crucial when studying organizational behavior, innovation management, corporate strategy, and human resource management. It's particularly important when analyzing how large companies stay competitive and foster innovation.
Common Confusions
- Thinking intrapreneurs own their innovations (they typically belong to the company)
- Confusing intrapreneurship with regular job promotions or management roles
- Believing intrapreneurs have the same financial risks as independent entrepreneurs
- Assuming all companies encourage or allow intrapreneurial behavior
