It’s not a spelling mistake, and it’s not a new trend. This fancy word describes internal entrepreneurs, people fostering innovation within the companies.

It is believed that it all started in 1948 when 3M implemented a “15% rule” and encouraged employees to spend 15% of their work time on independent projects. This rule eventually led to the creation of sticky notes. Can you imagine a world without those little yellow stickies? I can’t.

However, even today, in 2023, many businesspeople take intrapreneurship for a spelling mistake. Conversations usually go like this:

– I’ve made an intrepreneurship framework.  

– You mean entrepreneurship, right?

– No, I don’t.

But let’s take a well-known concept to explain the less-known one. Intrapreneurship is all about turning your employees into, let’s say, mini-entrepreneurs. You pay them to do their work but give them a small % of their work time, freedom, resources, and support they need to come up with new and innovative ideas that can drive your company forward. 

Today, there’s no denying that this will make your company more successful than having them work 100% of the time on your ideas. So, it makes sense to do it.

Here are many more whys. 

In 1986, a study published in the Journal of Business Venturing surveyed over 200 employees in various companies. They found that those allowed to act like entrepreneurs within the company had higher levels of job satisfaction and were less likely to leave the company than those who did not have the same opportunity. (Burgelman, & Sayles, 1986)

In 2002, another study published in the Journal of Management Studies confirmed these findings by studying one large manufacturing company. They also found that employees who participated in the intrapreneurship program had a stronger sense of ownership and responsibility for their work, were more committed to the company, and experienced a significant increase in innovation and new product development due to the program. (Hisrich, & Peters, 2002)

The list of benefits continues. 

• Turning your employees into intrapreneurs improves organizational flexibility and adaptability. Encouraging employees to come up with new ideas and experiment with new technologies help companies become more agile and better able to adapt to changing market conditions. (Hisrich, & Peters, 2002)
• Intrapreneurs show improved collaboration and idea-sharing abilities. Intrapreneurship programs encourage employees to work together, leading to a more dynamic and collaborative work environment. (Burgelman, & Sayles, 1986)
• Having intrapreneurs within your company will likely increase your competitiveness in today’s fast-paced business landscape. (Gibb, 1999)

Many world-famous companies have implemented intrapreneurship programs and can confirm the abovementioned benefits. For example, 

• Google’s 20% time policy implemented in 2004 has led to the creation of some of Google’s most successful products, such as Gmail, Google Maps, and AdSense. 
• Dell Innovators Club, established in 2007, increased employee engagement and motivation, which led to increased productivity and performance.
• Microsoft’s Garage from 2009 has been credited with the development of the products and solutions, such as Microsoft Sway, Microsoft Pix and Microsoft Tossup.
•  Adobe’s Kickbox was established in 2012 to provide employees with a “box of tools” to help them realize their ideas and has been credited with developing Adobe Spark, Adobe XD and Adobe Dimensions.

After speaking with their employees, I discovered that many of these programs have evolved over time. Companies have adapted to challenges by modifying frameworks, even the rules of the game.

But, despite these variations, all of them still incorporate intrapreneurship practices, which suggests that there is value in it.

So why not give it a try? Perhaps, your following big breakthrough product might come from an “unmotivated” employee.

References:

Burgelman, R. A., & Sayles, L. R. (1986). Inside Corporate Innovation: Strategy, Structure, and Managerial Skills. Free Press.

Hisrich, R. D., & Peters, M. P. (2002). Entrepreneurship. McGraw-Hill Education.

Gibb, A. A. (1999). Intrapreneurship: A review and critique. Journal of Small Business Management, 37(1), 1-19.