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INTRAPRENEURSHIP
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a. Decentralization: Giving power and decision making to smaller units of the business organisation through indivi d-
This is where people employed by an entrepreneur entrepreneur work by being cre ative and innovative. In this aspect these people don·t have authority over the larger business but the entrepreneur implements their innovations. It may also mean an entrepreneur with in an entrepreneur. entrepreneur.
uals. This is made possible because because intrapreneurs as as i nnovative workers be found at all levels of an organisation. This provides a high degree of autonomy autonomy that is a requir requir ement for an an innovative environme nt. b. Creating project teams: These are specifically formed and
Intrapreneurship prevails in a business where internal operations of the business encourage people to be creative and innovative. This is usually common with the businesses that are run on a large scale such that there is need to employ workers who are managers of strategic business units where creativity is required. The skills and tasks are very strategic to the overall performance of the organisation since they posses· unique attributes. An organisation therefore ne eds to bring out new changes that will en able such workers have are trained stay in the organisation. This prevents the best mangers from leaving the organisation.
tasked with producing new products, services, and processes for a given period of time. Project teams· with in an organisation be assigned the duty of studying a new development outside the organisation organi sation for stated time lag. This exposes them to new methods methods of business manag ement. c. Creating a system that encourages staff to be indepe ndently creative through recognition and rewarding of their efforts. This promotes competition for new products among the employees. d. Creating strategic alliances with other firms to persue
ORGANIZING FOR INTRAPRENEURSHIP
ideas that require combined efforts.
The manager should should be encouraged encouraged to creative with in the or ganisation other than setting up their own businesses. In this case such managers need to be supported and given freedom. For this to happen businesses should be organised in the following ways;
Classification of Intrapreneurship Different business organisations do approach intrepreneu rship in different ways as explained below: (C ) Administrative Intrapreneurship
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MULTITECH BUSINESS SCHOOL
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Under this the economy forms an administrative arm within its organis ational structure with a reason of spearheading and encouraging greater
Team work i.e. people must join hands for a common cause.
creativity and innovation.
Flexibility i.e. able to change and to accept criticism
This may therefore be in form of an administrative department in ch arge
Creativity i.e. ability to think of a developmental idea
of new developments e.g. research and development department.
Innovative i.e. be practical in changing theoretical ideas into
(D ) Opportunistic Intrapreneurship
real business.
The company opens up its structure to allow individuals persue opportu nities both internal and external to the organisation with the company u s-
CONDITIONS NECESSARY FOR INTRAPRENEURSHIP TO TAKE
ing its facilities to implement.
PLACE
In this regard opportunistic intrapreneurs look for and exploit their oppo r-
There should be open encouragement and support of people
tunities and then management facilitates their implementation.
who come up with new ideas.
(E ) Acquisitive intrepreneurship
(i).
Experimentation: the organisation should permit
The companies here look out for individual with intrepreneurship in other
some degree of experimentation i.e. trials and errors
firms; employ them to benefit from their creativity. They can acquire
should be made.
them through mergers, takeovers, join ventures, and buy -outs
(ii).
(F ) Imitative Intrapreneurship
Rewards: i.e. recognition and remuneration of intr apreneurs
Companies take advantages of other companies innovations and then
(iii).
Conducting of entereprenual meetings
copy them with a slight superior improvement and then control the ma r-
(iv).
Top management support: the original owners of the
ket in that new innovation. Therefore the original innovator is set to lose. (G ) Incubative intrapreneurs
business have to welcome and support them (v).
This is where the company develops intrapreneurs from outside and then absorbs their ideas. It therefore s et up sub-autonomous research and
Leadership: Intrapreneurship is a slow process that needs a head.
(vi).
There should be availability resources
development units and supports them with capital, and other resources.
COMMON FEATURES OF INTRAPRENEURS BY AMBROSE TUBENAWE 0772467417
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MULTITECH BUSINESS SCHOOL
IMPORTANCE OF INTRAPRENEURSHIP
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Good company image
Intrapreneurship as a business mode emerges from another well estab-
Any company that welcomes and promotes intrepreneurship
lished bigger organization and in so doing it comes with a number of
with in its structure wil l gain more reputation in the commun i-
benefits. The following are some of the common importance.
ty.
Diversification
Prestige among the workers
Intrapreneurship comes with a new but different business. This results
If workers work for an employer who motivates them through
into having more than one business with in the same location. This i n-
financially, they are most likely to increase their performance.
creases the chances of survival of the overall organization.
This makes them develop positive attitudes towards the e mployer.
Increased income When a new venture starts, an d it operates well, more income in terms
Job security
of profits may be generated.
The workers who possess the qualities of intrepreneurship are most likely to keep their jobs for a long period with minimum
Competitive advantage
risks of losing them as compared to those who are not.
Intrapreneurship comes with innovation which may yield more new unique products and processes. This may give the business a better
BARRIERS TO INTRAPRENEURSHIP
business advantage over the rivals. Intrapreneurship is faced with a number of limiting factors Reduced labour turnover
which include:
Labour turnover refers to the rate at which workers leave and joi n the organization. With a reduced labour turnover, the companies able to
Resistance to change
save money that it would spend in training new recruits that join so fr e-
Intrapreneurship is associated with changes that may diso r-
quently.
ganize the internal arrangement. This may be prohibited by the current workers who:
BY AMBROSE TUBENAWE 0772467417
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MULTITECH BUSINESS SCHOOL
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Have worked aiming at protecting their jobs or positions
Innovation with in an organization requires a lot of cooperation
Don·t like too many innovations that may increase the
and good will from other workers whose absence may jeopar d-
number of responsibilities and work load.
ize Intrapreneurship.
Management decision
Lack of experimentation
Decisions of managers may be slow especially in cases where it may i n-
Total commitment without testing of the innovative ideas of
volve a lot of commitment in terms financial support to the intrapreneurs.
the workers is less helpful to the business.
Organizational barriers
Lack of support of top management
Standard work practices may not help people to be creative. This is
The original entrepreneurs may welcome the Intrapreneurship
common in cases where there are already established internal controls
ides but fail to support these creative efforts which may eve n-
and procedures to be observed and fully followed by each worker eg
tually make the creative workers discouraged.
working full time without free thinking periods. Hijacking of ideas Experience
Ones productive ideas may be copied by another person or e x-
According to P. Pinchot, experience has shown that new ventures that
ternal party that may quickly implement them their by blocking
stated with in the organization perform worse that those that started i n-
the chances of application of the ideas by the original intr a-
dependently by prospective intrapreneurs.
preneur.
Lack of enough Resources Establishment of Intrapreneurship involves commitment or resources both financial and material and non material plus time that is usually l imited.
Lack of team work BY AMBROSE TUBENAWE 0772467417
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