# Understanding Intrapreneurs: Their Role, History, and Company Benefits

![Intrapreneur: An employee tasked with developing an innovative idea or project within a company.](https://www.investopedia.com/thmb/ij3jk-GujDFrf4VOZyUhMLSxb9M=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/intrapreneur.asp-final-38ef9cc8a0dd4ae9afd0fcb36cc5d23a.png)

*— Investopedia / Julie Bang*

## What Is an Intrapreneur?

An intrapreneur is an employee tasked with developing [innovative ideas](https://www.investopedia.com/financial-edge/0112/8-inventions-that-made-our-lives-easier.aspx) or projects within a company. This term was coined by Gifford Pinchot III and Elizabeth S. Pinchot. This employee may be given the opportunity to transition into an entrepreneur.

The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company, giving them the potential to significantly impact the company and its growth.

### Key Takeaways

*   An intrapreneur is an employee who develops innovative ideas within a company, utilizing its resources and capabilities.
*   The term "intrapreneur" combines "internal" and "entrepreneur" and was coined by Gifford and Elizabeth Pinchot in 1978.
*   Intrapreneurs aim to improve their companies with new ideas, often leading to significant changes in processes or products.
*   Successful intrapreneurs can climb to executive leadership, driving innovation and growth in their organizations.
*   Intrapreneurs enjoy the freedom to innovate while benefiting from the established resources of their company.

## Key Roles and Responsibilities of Intrapreneurs

Intrapreneurs are employees of a company who are assigned to work on a special idea or project. They are given the time and freedom to develop the project as an entrepreneur would.

However, they are not working solo. Intrapreneurs have the resources and capabilities of the firm at their disposal.

> **Important**
>
> An entrepreneur creates a company to offer goods or services, while an intrapreneur aims to enhance an existing company.

[Entrepreneurs](https://www.investopedia.com/terms/e/entrepreneur.asp) aim to build companies from scratch, while intrapreneurs envision broad changes within existing companies. This vision may involve radical changes to company traditions, processes, or products. The intrapreneur typically has directly applicable skills and experience to bring to the job.

## The Origins of Intrapreneurship

The term "intrapreneur" combines "internal" and "entrepreneur" and was coined by Gifford Pinchot III and Elizabeth S. Pinchot in a 1978 white paper, "Intra-Corporate Entrepreneurship." The term gained traction in academia afterward. In February 1985, _Time_ magazine published an article "Here Come the Intrapreneurs" which popularized the term even further.

## How Intrapreneurship Benefits a Company

An entrepreneur starts a company as a means of providing a good or service. An intrapreneur explores policies, technologies, or applications that will help improve the performance of an existing company. Inevitably, as an intrapreneur develops the skills needed to recognize and solve important problems, that intrapreneur may turn into an entrepreneur.

Intrapreneurs usually have the freedom and autonomy they need. They are not burdened with daily deliverables but focus on analyzing trends to plan the company's future. Intrapreneurs then propose strategies to stay competitive.  

> **Important**
>
> An intrapreneur is usually given the freedom and autonomy needed to explore new projects, but sometimes they have to do this in addition to their regular day job.

Intrapreneurs often rise to [executive leadership](https://www.investopedia.com/terms/c/c-suite.asp), propelled by a deep understanding of the business. By solving problems, they encourage the growth of other skilled intrapreneurs and help integrate new ideas to benefit the company.

## Essential Traits of a Successful Intrapreneur

Pinchot, author of the "Intra-Corporate Entrepreneurship" whitepaper, notes that intrapreneurs follow these principles:

*   Risk something of value to themselves, such as time or financial sacrifice.
*   Share the reward of an intrapreneurial project between a corporation and the intrapreneur in a defined and equitable way.
*   Give the intrapreneur the ability to build something akin to capital.
*   Are given independence by the corporation, after it is earned.
*   Become their own "venture capitalist" within a corporation

Intrapreneurs are typically highly motivated individuals who possess specific skill sets, as well as leadership abilities and an [innovative](https://www.investopedia.com/terms/d/disruptive-innovation.asp) vision that others within the corporation can get behind. Although intrapreneurs may have their "day job" and usual assignments on top of their new venture, they are willing to take certain risks and interpret trends in the marketplace to visualize the next steps that a company may need to innovate or stay ahead of the competition.

## Real-World Example of Intrapreneurship

In less than a year on the job as [eBay’s](https://www.investopedia.com/articles/markets/042815/how-ebay-makes-its-money-ebay.asp) chief of staff of global product management, Healey Cypher realized the company was missing out on a major business opportunity.

At the time, eBay offered only e-commerce services to its clients. Despite the growth of Internet retail, the majority of consumer purchases were still made within 15 miles of a consumer’s home. Many eBay retailers told Cypher they wanted a physical retail presence as well.

After consulting with eBay’s [chief executive officer](https://www.investopedia.com/terms/c/ceo.asp) (CEO), Cypher assembled a team of engineers to develop tools that could be used to create an eBay presence in physical stores. The engineers created an interactive storefront that Toys"R"Us eventually installed. Over the following two years, the engineers did the same for TOMS, Sony, and Rebecca Minkoff.

Cypher’s success became a new division of eBay, giving workers autonomy for solving problems and moving the company forward. Cypher became eBay's former Head of Retail Innovation.

## What Is the Difference Between an Entrepreneur and an Intrapreneur?

An entrepreneur envisions creating a company from the ground up. An intrapreneur works within an established corporation to develop an innovative idea or project.

## Who Is Called an Intrapreneur?

Intrapreneurs are employees of a company who are assigned to work on a special idea or project. They are given the time and freedom to develop the project as an entrepreneur would.

## What Is the Role of an Intrapreneur?

An intrapreneur explores policies, technologies, or applications that will help improve the performance of an existing company.

## What Is the Intrapreneurial Mindset?

An intrapreneur has a broader vision for an established company. This vision may involve radical changes to company traditions, processes, or products. The intrapreneur typically has direct applicable skills and experience to bring to the job.

## How Do You Become an Intrapreneur?

Intrapreneurs are high-performing employees who are typically assigned to explore new ways for a company to innovate, improve its existing products, or stay ahead of the competition; however, intrapreneurs are not always assigned this role and individuals with innovative ideas can also surface them or work on these projects on the side, before introducing them to senior leadership.

## The Bottom Line

Intrapreneurs are employees tasked with identifying new ways to innovate within a company. Intrapreneurs are typically granted access to a company's resources and the freedom to innovate, albeit with a reduced risk compared to entrepreneurship.

Key characteristics of intrapreneurs include having an innovative vision, leadership abilities, and being motivated to bring about significant changes within an organization.

> **Article Sources**
>
> 1.  Stanford University. "[What Is Intrapreneurship, and How Can You Cultivate it at Your Company?](https://online.stanford.edu/what-intrapreneurship-and-how-can-you-cultivate-it-your-company)"
>     
> 2.  Western Carolina University. "[Presentation by Gifford Pinchot III, wife Libba kicks off 2019-20 Campus Theme](https://www.wcu.edu/stories/posts/News/2019/08/presentation-by-gifford-pinchot-iii-wife-libba-kicks-off-2019-20-campus-theme/index.aspx)."
>     
> 3.  MIT Management Sloan School. "[Intrapreneurship, Explained](https://mitsloan.mit.edu/ideas-made-to-matter/intrapreneurship-explained)."
>     
> 4.  Time. "[Here Come the Intrapreneurs](https://content.time.com/time/subscriber/article/0,33009,959877,00.html)."
>     
> 5.  Intrapreneur.com. "[The Intrapreneur's Ten Commandments](https://intrapreneur.com/the-intrapreneurs-ten-commandments/)."
>     
> 6.  Intrapreneur.com. "[What Intrapreneurs Can Do](https://intrapreneur.com/what-intrapreneurs-can-do/)."
>     
> 7.  Fast Company. "[The Rise of the Intrapreneur](https://www.fastcompany.com/3046231/the-rise-of-the-intrapreneur)."
>     
> 8.  LinkedIn. "[Healey Cypher](https://www.linkedin.com/in/healeycypher/)."