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An internal entrepreneur is a type of entrepreneur who operates inside the confines of an organisation such as a business unit or a government body.
An internal entrepreneur is known as an intrapreneur (makes part of intrapreneurship) and is defined as "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". [1] They are usually very motivated, with a high drive towards completing the job at a fast pace with efficience (action-oriented) who are comfortable with taking the initiative, regardless of the boundaries that the organisation or the entrepreneurial world imposes over them, they are in a constant pursuit of an innovative product or service. Their behaviour can be characterised through the ability of thinking outside the box which includes smart and clear minded risk-taking with an emphasis on leadership, these traits combined are also what make a successful entrepreneur.[ citation needed ]
The main difference between an internal entrepreneur (intrapreneur) and an entrepreneur is the environment, which represents the sphere in which they work. An entrepreneur's aim in general terms is to create a successful organisation, while an internal entrepreneur on the other hand has to find solutions to existing problems within the company and provide improvements for the benefit of the existing organisation.[ citation needed ]
Forbes Insights studies state that internal entrepreneurs comprise approximately one in every six executives in Europe. They tend to be innovators with specific ideas and a mind set towards the creation of original plans for the prosperity of the company. The task of an internal entrepreneur is to push the idea to a corporate bureaucracy which may be inhospitable to new ideas. [2]
A significant portion of current entrepreneurs were once internal entrepreneurs who weren't satisfied with their work or the limits put on innovation. [3] Some companies have attempted to accommodate the idea of internal entrepreneurs, under the idea that it is in their own benefit. As a result, some large organisation I"nnovation departments" led by a "Chief Innovation Officer". Since the mid 2000s, this trend has grown. As of 2014, the majority of consulting companies have innovation offices, according to The Harvard Business Review . [4]
According to statistics published by Forbes in 2011, companies have a roughly similar proportion of internal entrepreneurs regardless of size or revenue: [5] [6]
Some key traits that influence entrepreneurs are:
[8] Sony: Ken Kutaragi, in the position of a junior employee at Sony used to spend his free time with his daughters in order to improve the Nintendo device. Regardless of the fact that the staff at Sony were against his work, Ken was lucky enough to get a senior employee's attention. This resulted in the beginning and creation one of the Sony's most valued products at the market right now, Sony PlayStation. At the moment PlayStation is one of the leaders in gaming industry, being one of the best selling consoles - it's a clear result of success and innovation from "intrapreneurship".
3M: Dr. Spencer Silver was trying to create a strong adhesive with the aim of using it in aerospace technology. His research proved to be unsuccessful as he accidentally created a light adhesive that would stick to surfaces without leaving any trace after removal. This is an example of strategic scanning where instead of getting rid of the idea, he decided to keep working on it and improving it further for other uses. After years of trying to push the idea forwards, he joined forces with Art Fry (a fellow scientist at 3M), together they came with the idea of Post-IT notes which are actively used until now.
In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. The term, "disruptive innovation" was popularized by the American academic Clayton Christensen and his collaborators beginning in 1995, but the concept had been previously described in Richard N. Foster's book "Innovation: The Attacker's Advantage" and in the paper Strategic Responses to Technological Threats.
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses that do not intend to go public, startups are new businesses that intend to grow large beyond the solo-founder. During the beginning, startups face high uncertainty and have high rates of failure, but a minority of them do go on to become successful and influential.
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity, realizing or redistributing value". Others have different definitions; a common element in the definitions is a focus on newness, improvement, and spread of ideas or technologies.
Avery Dennison Corporation is a multinational manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products. The company is a member of the Fortune 500 and is headquartered in Mentor, Ohio.
Product innovation is the creation and subsequent introduction of a goods or service that is either new, or an improved version of previous goods or services. This is broader than the normally accepted definition of innovation that includes the invention of new products which, in this context, are still considered innovative.
Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship is 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 entrepreneurship. Corporate entrepreneurship is a more general term referring to entrepreneurial actions taking place within an existing organization whereas Intrapreneurship refers to individual activities and behaviors.
Blue Ocean Strategy is a book published in 2005 written by W. Chan Kim and Renée Mauborgne, professors at INSEAD, and the name of the marketing theory detailed on the book.
Business development entails tasks and processes to develop and implement growth opportunities within and between organizations. It is a subset of the fields of business, commerce and organizational theory. Business development is the creation of long-term value for an organization from customers, markets, and relationships. Business development can be taken to mean any activity by either a small or large organization, non-profit or for-profit enterprise which serves the purpose of 'developing' the business in some way. In addition, business development activities can be done internally or externally by a business development consultant. External business development can be facilitated through Planning Systems, which are put in place by governments to help small businesses. In addition, reputation building has also proven to help facilitate business development.
Bootlegging in corporate research and development is defined as "a non-formalised and non-declared (secret) bottom-up innovation process for the benefit of the bootlegger's firm." In corporate bootlegging, an employee works on a project or projects unconnected to their "official" work, and is generally allowed to do so in the understanding that it may benefit the company in some way; however, managerial approval is not always given. David A. Schon introduced the notion of bootlegging into economics and business administration literature in 1963.
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, parts thereof, customer accounts, or products and services.
Strategic design is the application of future-oriented design principles in order to increase an organization's innovative and competitive qualities. Its foundations lie in the analysis of external and internal trends and data, which enables design decisions to be made on the basis of facts rather than aesthetics or intuition. The discipline is mostly practiced by design agencies or by internal development departments.
Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk, and potentially involving values besides simply economic ones.
Gifford Pinchot III is an American entrepreneur, author, inventor, and president of Pinchot & Company. He is credited with inventing the concept of intrapreneurship in a paper that he and his wife, Elizabeth Pinchot, wrote in 1978 titled "Intra-Corporate Entrepreneurship" while attending Tarrytown School for Entrepreneurs in New York.
A corporate social entrepreneur (CSE) is someone who attempts to advance a social agenda in addition to a formal job role as part of a corporation. It is possible for CSEs to work in organizational contexts that are favourable to corporate social responsibility (CSR). CSEs focus on developing both social capital, economic capital and their formal job role may not always align with corporate social responsibility. A person in a non-executive or managerial position can still be considered a CSE.
Entrepreneurial leadership is "organizing a group of people to achieve a common goal using proactive entrepreneurial behavior by optimising risk, innovating to take advantage of opportunities, taking personal responsibility and managing change within a dynamic environment for the benefit of [an] organisation".
Yunus Social Business (YSB) is an impact-first organisation with a non-profit impact-investing arm, Yunus Funds, and a corporate social-innovation consulting arm, Yunus Corporate Innovation. Both business units are based on furthering the concept of social business, as developed by YSB Co-founder and Chairman Professor Muhammad Yunus.
Raphael H. Cohen is a Swiss professor, lecturer, author, serial entrepreneur, former business angel and academic director at MBA programs. He has a PhD in economics from University of Geneva, Switzerland.
Advanced Innovation Design Approach (AIDA) is a holistic approach for enhancing the innovative and competitive capabilities of industrial companies. The name Advanced Innovation Design Approach (AIDA) was proposed in the research project "Innovation Process 4.0" run at the University of Applied Sciences Offenburg, Germany in co-operation with 10 German industrial companies in 2015–2019. AIDA can be considered as a pioneering mindset, an individually adaptable range of strong innovation techniques such as comprehensive front-end innovation process, advanced innovation methods, best tools and methods of the theory of inventive problem solving TRIZ, organisational measures for accelerating innovation, IT-solutions for Computer-Aided Innovation, and other tools for new product development, elaborated in the recent decade in the industry and academia.
Intrapreneurial Bricolage (IB) is the pursuit of entrepreneurial endeavors, operating within a larger organization using only limited, available resources. The term combines the two concepts of intrapreneurship and bricolage. Intrapreneurship uses principles and strategies from the discipline of entrepreneurship and applies them within the confines of an organization rather than initiating new ones. Borrow from the French word for "makeshift job", bricolage is a type of art using whatever media is at hand. In the context of intrapreneurial bricolage, intrapreneurs find innovative ways to work with a scarcity of resources.
As an employee benefit, some employers offer a guarantee that employees may work on their personal projects during some part of their time at work. Side project time is limited by two stipulations: what the employee works on is the intellectual property of their employer, and if requested, an explanation must be given as to how the project benefits the company in some way, even tangentially.