# Intrapreneurship: Definition, Duties, and Responsibilities

![Intrapreneurship](https://www.investopedia.com/thmb/ndlREw3NnQ01xv4QZw-i-cQDRbo=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/intrapreneurship.asp-final-145a12d7892a450da49ad1290ebeec87.png)

*Intrapreneurship can lead to a more dynamic work environment. — Investopedia / Paige McLaughlin*

> **Definition**
>
> Intrapreneurship encourages employees to take initiative and develop ideas, much like an entrepreneur.

## What Is Intrapreneurship?

Intrapreneurship is a system that encourages employees to act like [entrepreneurs](https://www.investopedia.com/terms/e/entrepreneur.asp) within their own company. Intrapreneurs are self-motivated, proactive, and action-oriented individuals [who take the initiative](https://www.investopedia.com/terms/a/adhocracy.asp) to develop innovative products or services.  

Unlike entrepreneurs, intrapreneurs operate within a company's safety net, which absorbs any failures or losses. This support encourages creativity and risk-taking, allowing intrapreneurs to innovate without fearing personal financial loss. By leveraging their creativity and ingenuity, intrapreneurs can drive significant innovation and transform their workplaces, similar to entrepreneurs.

Companies can leverage their employees' entrepreneurial spirit by fostering intrapreneurship, leading to greater innovation, agility, and competitive advantage.

### Key Takeaways

*   Intrapreneurship allows employees to act like entrepreneurs within an organization.
*   Intrapreneurs are typically self-motivated, proactive, and action-oriented individuals with leadership skills who think outside the box.
*   Intrapreneurship is a stepping stone to entrepreneurship, enabling intrapreneurs to use their team experiences to develop their own businesses.

## Understanding Intrapreneurship

Intrapreneurship creates an entrepreneurial environment by allowing employees to apply their entrepreneurial skills to benefit the company and themselves. It provides employees with the freedom to experiment and the potential for growth within the organization.

Intrapreneurship aims to foster autonomy and independence as employees seek the best solutions. For example, an intrapreneur might be tasked with researching and recommending a more efficient [workflow](https://www.investopedia.com/terms/w/workflow.asp) for a company's brand within a target group or implementing initiatives to improve [company culture](https://www.investopedia.com/terms/c/corporate-culture.asp).

Many employers recognize and promote intrapreneurs, as failing to do so can harm a company's success. Encouraging intrapreneurship leads to departmental and overall growth, driven by innovation and improvement. On the other hand, companies that don't support intrapreneurs risk losing them to competitors or having them start their own businesses.  

Examples of successful intrapreneurship include the Post-it note, Gmail from Google's "20% time," and Facebook's "Like" button, which were developed during a hackathon. Intrapreneurs use the company's existing resources, rather than risking their own money, but can still create innovative products or solutions.

> **Important**
>
> Intrapreneurs leverage company resources to innovate and drive new ventures within the organization, while entrepreneurs rely on their own resources to build businesses from the ground up. This allows intrapreneurs to focus on creativity and innovation without the financial risks facing entrepreneurs.

## Special Considerations

Intrapreneurship is a valuable step toward entrepreneurship. By working as a team, intrapreneurs can use their creativity to improve existing products and services within the company without bearing the financial risk of being entrepreneurs. They can also test theories and identify the most effective problem-solving methods.

The experience gained as an intrapreneur can eventually be used to start their own business, allowing them to reap the benefits of their hard work and innovative ideas, rather than having another organization profit from them.

> **Tip**
>
> Identifying potential intrapreneurs within your organization is often straightforward. Look for employees who consistently suggest new ideas, ask questions about company operations, and seek to learn from their colleagues.

## Types of Intrapreneurs

Including employees from every age group in problem-solving processes leads to a wider range of solutions and more efficient resolutions, benefiting the entire organization. Most [millennials](https://www.investopedia.com/terms/m/millennial.asp) are particularly drawn to the intrapreneurial work style, as they value meaning, creativity, and autonomy in their roles. They're eager to develop their own projects while simultaneously contributing to their company's growth.  

## Characteristics of Intrapreneurs

Intrapreneurs tackle specific challenges, such as increasing productivity and cutting costs, requiring a high level of skill, including leadership and innovative thinking. They take risks and drive innovation within the business to improve its goods and services, better serving the [market](https://www.investopedia.com/terms/m/market.asp).

A successful intrapreneur is comfortable with uncertainty, persistently testing their ideas until they achieve the desired results. They can interpret market trends and envision how the company needs to evolve to stay competitive. Intrapreneurs are integral to the company's backbone, serving as the driving force that maps out the organization’s future.

## Examples of Intrapreneurship

Ramzi Haidamus, the president of Nokia Technologies, is often considered an intrapreneur because of his initiatives with the company. Within three months of starting his job in 2014, he eliminated individual offices. He believed an open office led to more idea-sharing and added greater value to the organization. Haidamus interviewed more than 100 engineers individually to determine which technologies had the greatest chance of being successful in the marketplace at the time.

Jeff Bezos aimed to speed up Amazon's shipping, making purchases effortless for customers. After principal engineer Charlie Ward suggested a faster shipping process, Bezos formed a secret team to develop it.

In just six weeks, Amazon's top engineers created what became Amazon Prime, initially code-named "Futurama." Despite concerns about the logistics and costs of two-day free shipping, Bezos pushed forward, resulting in a program that revolutionized Amazon and set a new standard for retailers.

## Explain Like I'm Five

Intrapreneurship is the practice of innovating and finding creative solutions within an established company. Just like a startup founder, an intrapreneur tries to create new products, but instead of founding a new company, they use their discoveries to benefit their current employers.

Many established companies have found surprising success by cultivating intrapreneurship, including Google and Amazon. By giving employees the freedom to innovate, they sometimes develop creative solutions that the companies would not have discovered otherwise.  

## What Is the Difference Between Entrepreneurship and Intrapreneurship?

The main difference between an entrepreneur and an intrapreneur is that an entrepreneur starts their own company, while an intrapreneur innovates within an existing company. Entrepreneurs develop new business concepts, create business plans, secure financing, and build teams. In contrast, intrapreneurs use their entrepreneurial mindset to drive innovation and lead new initiatives within their organization without bearing the financial risks.

## What Is the Main Goal of Intraprenuership?

Intrapreneurship aims to drive innovation within a company by enabling employees to lead new projects and initiatives. It merges entrepreneurship's creativity and initiative with an established organization's support and resources. This may benefit the company and its customers by exploring new revenue streams, diversifying offerings, and boosting productivity and engagement.

## What Are the Main Risks of Intrapreneurship?

Intrapreneurs may lack autonomy over their projects and must align with company goals and approval processes. They also generally have less decision-making authority and might not receive full credit or financial rewards for successful ventures. Career advancement may also be stalled if their initiatives aren't successful, potentially leading to frustration and decreased motivation.

## The Bottom Line

Intrapreneurship encourages innovation by allowing employees to act like entrepreneurs within a company. This approach promotes creativity and risk-taking without the financial risks of starting a new business, leading to new products, services, and improved processes.

While intrapreneurs may face limited autonomy and recognition, the benefits of increased employee engagement and a boost to a company's growth make it a worthwhile strategy.  

> **Article Sources**
>
> 1.  Stanford University. "[What is intraprenuership, and how can you cultivate it at your company?](https://online.stanford.edu/what-intrapreneurship-and-how-can-you-cultivate-it-your-company)"
>     
> 2.  MIT Sloan School. "[Intrapreneurship, explained](https://mitsloan.mit.edu/ideas-made-to-matter/intrapreneurship-explained)."
>     
> 3.  People Matters Global. "[Why do we need to develop intrapreneurship in our leaders?](https://www.peoplemattersglobal.com/article/leadership/why-do-we-need-to-develop-intrapreneurship-in-our-leaders-24366)"
>     
> 4.  Fortune. "[What Does It Take to Be an Intrapreneur" This Exec Did It](https://fortune.com/2016/03/18/ramzi-haidamus-nokia-technologies/)."
>     
> 5.  Forum Magazine. "[6 Famous Examples of Intrapreneurship](https://forummagazine.org/6-famous-examples-of-intrapreneurship/)."
>     
> 6.  Grand Canyon University. "[Entrepreneur vs. Intrapreneur](https://www.gcu.edu/blog/business-management/entrepreneur-vs-intrapreneur#:~:text=The%20main%20difference%20between%20an,services%20%28or%20occasionally%20both%29.)."
>     
> 7.  Wharton Online. "[Understanding Intrapreneurship](https://online.wharton.upenn.edu/blog/understanding-intrapreneurship/)."
>     
> 8.  Grand Canyon University. "[Entrepreneur vs. Intrapreneur](https://www.gcu.edu/blog/business-management/entrepreneur-vs-intrapreneur)."