CHAPTER 1: INTRODUCTION TO ENTREPRENEURSHIP (cont)

INTRAPRENEURSHIP

Individuals in organizations with high entrepreneurial characteristics. (Pinchot, 1985)

Inside the entrepreneur who follow the goal of the organization.

Individuals with entrepreneurial characteristics who practice their idea on company’s product.

Characteristics of Intrapreneur

Main Motive	-Wants freedom -Tries to ensure effective usage of company’s internal resources -Goal oriented and self-motivated, but expects reward and recognition from the   company.
Time orientation	-Gives 3 to 15 years to achieve his or her goal, depending on the type of exploration and level of top management’s commitment.
Action/behaviour	-Wants fast action by own initiative and support from the organization. -Knows the benefits that could be gained from daring actions.
Skills	-Like entrepreneur, intrapreneur has in depth understanding of business field- however focuses more on internal development. -Requires resource support from company’s top management -Bound by corporate policy in exploiting his or her skills. -Use of creativity and innovation.
Resource requisition	-Depends on the resources provided by the company.
Motivation and ability	-Has self-confidence due to encouragement from friends and families -Most are cynical towards the system, but very optimistic with regard to their own ability to start a business.
Attention	-Gives full attention to factors internal and external to the company. -Focuses on the need for new exploration, market and customer.
Risk acceptance	-Willing to take some risks -Ready to free oneself from the company -Chosen career and tasks in considered as a challenge
Market research	-Does his or her own market research and intuitive market evaluation
Failures and mistakes	-Has the tendency to hide risky projects from others or uses the company’s name to hide from mistakes -Willing to learn from mistakes
Decision making	-Has the skill to persuade the company to accept projects that he or he likes. -Has the patience and more willing to compromise compared to entrepreneur -Bound by company’s hierarchical structure, which means all decision have to referred to company’s top management.
Attitude regarding status	-Does not care about status quo -Wants freedom and flexibility

Importance of Intrapreneurship Development

-Enable the company to vary its business

-Help in integrating secondary activities that are not directly related to the mission of the organization.

-Prevent people from compromising instead of finding the best solution.

-Helps company in adapting to the dynamic and challenging business environment.

-Provide the opportunity for the company to try new markets

-Helps in reducing response time

Intrapreneur Development Process Model

Problem Definition -> Building Partnership -> Resource Distribution->Project Implementation->Project Completion

Strategies to Develop Intrapreneurs

-Develop an environment that encourages intrapreneurial activities

-Avoid extreme bureaucracy

-Develop efficient control system for the company

Intrapreneurship vs Entrepreneurship: Is there any Difference?

INTRAPRENEURSHIP	ENTREPRENEURSHIP
Still company employees, but they are supposedly given free rein to run a particular aspects of the company, perhaps a new product line or subsidiary.	Self-employed people running their own company.
Know if they fail, the company is still going to ensure they have a paycheck, at least for a while. Are chosen based on corporate standard, not entrepreneurial success.	If the entrepreneur fail, the company also will fail. They’re worry about making enough money to meet payroll and pay other bills.
Selected by a corporate hierarchy and don’t have to worry about building more structure they need to sustain a business.	Build all of them themselves.
Have at least a modicum of support from the primary organization and get final approval from senior executive.	Support their own company and entrepreneur make decision by themselves.