Intrapreneurship
Encyclopedia
Intrapreneurship is the act of behaving like an entrepreneur
, except within a larger organization.
.
by Norman Macrae
in the April 17, 1982 issue of The Economist. The first formal academic case study of corporate entrepreneurship or intrapreneurship was published in June 1982, as a Master's in Management Thesis, by Howard Edward Haller, on the intrapreneurial creation of PR1ME Leasing within PR1ME Computer Inc. (from 1977 to 1981). This academic research was later published as a case study by VDM Verlag as Intrapreneurship Success:A PR1ME Example by Howard Edward Haller, Ph.D.
The American Heritage Dictionary of the English Language included the term 'intrapreneur' in its 3rd 1992 Edition, and also credited Gifford Pinchot III as the originator of the concept. The term "intrapreneurship" was used in the popular media first in February 1985 by TIME magazine article "Here come the Intrapreneurs" and then the same year in another major popular publication was in a quote by Steve Jobs, Apple Computer’s Chairman, in an interview in the September 1985 Newsweek article, where he shared, “The Macintosh team was what is commonly known as intrapreneurship;only a few years before the term was coined—a group of people going, in essence, back to the garage, but in a large company."
: intrapreneurship within the firm which is driven to produce social capital in addition to economic capital.)
Employees, such as marketing executives or perhaps those engaged in a special project within a larger firm, are encouraged to behave as entrepreneurs, even though they have the resources, capabilities and security of the larger firm to draw upon. Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc.) adds to the potential of an otherwise static organization, without exposing those employees to the risks or accountability normally associated with entrepreneurial failure.
" group at Lockheed Martin
. The group was originally named after a reference in a cartoon, and was first brought together in 1943 to build the P-80 fighter jet
. Because the project was to eventually become a part of the war effort
, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly's 14 rules of intrapreneurship, was the director of this group.
Another example could be 3M
, who encourage many projects within the company. They give certain freedom to employees to create their own projects, and they even give them funds to use for these projects. (In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation.) Besides 3M, Intel also has a tradition of implementing intrapreneurship.
Google is also known to be intrapreneur friendly, allowing their employees to spend up to 20% of their time to pursue projects of their choice.
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
, except within a larger organization.
Definition
In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation". Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques, that are more traditionally thought of as being the province of entrepreneurshipEntrepreneurship
Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...
.
History
The first written use of the terms ‘intrapreneur,’ ‘intrapreneuring,’ and ‘intrapreneurship’ date from a paper written in 1978 by Gifford & Elizabeth Pinchot. Later the term was credited to Gifford Pinchot IIIGifford Pinchot III
Gifford Pinchot III is the grandson of Gifford Pinchot. He has carried on his grandfather's work in conservationism.In 1985 he wrote the best-selling book "Intrapreneuring" on the topic of Intrapreneurship; a revised edition, entitled "Intrapreneuring in Action" is currently published.In 2002, Mr...
by Norman Macrae
Norman Macrae
Norman Macrae CBE was a British economist, journalist and author, considered by some to have been one of the world's best forecasters when it came to economics and society...
in the April 17, 1982 issue of The Economist. The first formal academic case study of corporate entrepreneurship or intrapreneurship was published in June 1982, as a Master's in Management Thesis, by Howard Edward Haller, on the intrapreneurial creation of PR1ME Leasing within PR1ME Computer Inc. (from 1977 to 1981). This academic research was later published as a case study by VDM Verlag as Intrapreneurship Success:A PR1ME Example by Howard Edward Haller, Ph.D.
The American Heritage Dictionary of the English Language included the term 'intrapreneur' in its 3rd 1992 Edition, and also credited Gifford Pinchot III as the originator of the concept. The term "intrapreneurship" was used in the popular media first in February 1985 by TIME magazine article "Here come the Intrapreneurs" and then the same year in another major popular publication was in a quote by Steve Jobs, Apple Computer’s Chairman, in an interview in the September 1985 Newsweek article, where he shared, “The Macintosh team was what is commonly known as intrapreneurship;only a few years before the term was coined—a group of people going, in essence, back to the garage, but in a large company."
Employee Intrapreneur
"Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so." Hence, the intrapreneur focuses on innovation and creativity, and transforms an idea into a profitable venture, while operating within the organizational environment. Thus, intrapreneurs are Inside entrepreneurs who follow the goal of the organization. Intrapreneurship is an example of motivation through job design, either formally or informally. (See also Corporate Social EntrepreneurshipCorporate Social Entrepreneurship
A corporate social entrepreneur is defined as "an employee of the firm who operates in a socially entrepreneurial manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm achieve its business targets. The CSE operates regardless of...
: intrapreneurship within the firm which is driven to produce social capital in addition to economic capital.)
Employees, such as marketing executives or perhaps those engaged in a special project within a larger firm, are encouraged to behave as entrepreneurs, even though they have the resources, capabilities and security of the larger firm to draw upon. Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc.) adds to the potential of an otherwise static organization, without exposing those employees to the risks or accountability normally associated with entrepreneurial failure.
Examples
Many companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the "Skunk WorksSkunk works
Skunk Works is an official alias for Lockheed Martin’s Advanced Development Programs , formerly called Lockheed Advanced Development Projects. Skunk Works is responsible for a number of famous aircraft designs, including the U-2, the SR-71 Blackbird, the F-117 Nighthawk, and the F-22 Raptor...
" group at Lockheed Martin
Lockheed Martin
Lockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area....
. The group was originally named after a reference in a cartoon, and was first brought together in 1943 to build the P-80 fighter jet
Fighter aircraft
A fighter aircraft is a military aircraft designed primarily for air-to-air combat with other aircraft, as opposed to a bomber, which is designed primarily to attack ground targets...
. Because the project was to eventually become a part of the war effort
War effort
In politics and military planning, a war effort refers to a coordinated mobilization of society's resources—both industrial and human—towards the support of a military force...
, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly's 14 rules of intrapreneurship, was the director of this group.
Another example could be 3M
3M
3M Company , formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota, United States....
, who encourage many projects within the company. They give certain freedom to employees to create their own projects, and they even give them funds to use for these projects. (In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation.) Besides 3M, Intel also has a tradition of implementing intrapreneurship.
Google is also known to be intrapreneur friendly, allowing their employees to spend up to 20% of their time to pursue projects of their choice.
See also
- IntrepreneurIntrepreneurAn intrepreneur or intrapreneur is a person who has an entrepreneur skill set but works within an organization, enterprise, or venture. This could be within an organization that seeks the dynamism of forward thinking employees or incubation companies....
- EntrepreneurEntrepreneurAn entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
- Corporate Social EntrepreneurshipCorporate Social EntrepreneurshipA corporate social entrepreneur is defined as "an employee of the firm who operates in a socially entrepreneurial manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm achieve its business targets. The CSE operates regardless of...
- Skunkworks projectSkunkworks projectA skunkworks project is one typically developed by a small and loosely structured group of people who research and develop a project primarily for the sake of radical innovation. The term typically refers to technology projects, and originated with Skunk Works, an official alias for the Lockheed...
External links
- Intrapreneurship - Small Business Notes
- Intrapreneurship - MIT class notes