Current in Entrepreneurship Blog

I've been fascinated by the evolving landscape of intrapreneurship. We all know the big examples: Sony's PlayStation, Google's Gmail, and 3M's Post-it notes. What unites these innovations? They were born not from external startups, but from intrapreneurs who transformed their corporations from within.The term itself emerged in the 1970s, specifically in the context of large organizations. While entrepreneurs were busy building startups, intrapreneurs were changing the game within established corporations. They were the corporate changemakers.

But recently, intrapreneurship has expanded its horizons. It's now flourishing in diverse environments - the public sector, non-profit organizations, and even small and medium-sized enterprises (SMEs). Additionally, it's increasingly adopting a social dimension, manifesting as social intrapreneurship and systemic intrapreneurship. However, when you think of intrapreneurship, what image comes to mind? Most likely, it's intrapreneurship within large corporations.

Why SMEs are fertile ground for intrapreneurship: Traditionally, discussions about intrapreneurship focused on large, established organizations. This makes sense to some extent, as they have relatively abundant resources.

However, these large organizations often face restrictions that can stifle innovation, such as inertia, reduced autonomy, and control systems. These limitations are aptly summarized in the concept of the "Corporate Immune System", which resists disruption to maintain the status quo. Much of the existing advice for intrapreneurs revolves around navigating this very system.

Several factors make SMEs surprisingly suitable for intrapreneurship. Unlike mature organizations, where the need for survival is less pressing, SMEs operate under a constant pressure to innovate and adapt.

In smaller organizations, both private and non-profit, there's less room for waste. Every individual needs to contribute significantly with limited resources. This limited size also gives employees greater visibility into overall operations and a clearer understanding of the organization's strategy.

Furthermore, SMEs often provide greater access to key decision-makers. Employees are frequently managed by, or work closely with, the owner or founder. This empowers potential intrapreneurs, in stark contrast to larger organizations where traditional management structures prioritize stability over innovation.

Supporting intrapreneurship in SMEs:

A prime example of supporting intrapreneurship in SMEs is the UK's Studio Zao's Unlocking Opportunities program. This "intrapreneurship business growth accelerator" empowers SMEs to "create new business and services while creating new jobs." Given that the vast majority of organizations are small, imagine the potential impact if intrapreneurship becomes pervasive across all sizes!

Intrapreneurship in non-profits and the public sector:

In 2019, after years of supporting social change leaders, the Schwab Foundation recognized public social intrapreneurs for the first time. This recognition highlights the growing understanding of intrapreneurship as a tool for positive societal change.

Similarly, Good Innovation recently promoted intrapreneurship in the non-profit sector in its 2023 Future of Charity report. Additionally, The Lens was established to support third-sector organizations in increasing intrapreneurship and innovation.

On the surface, both public and non-profit organizations might seem ill-suited for intrapreneurship due to their risk-averse cultures. Change is often viewed negatively, partly due to structural factors. For example, non-profits often have trustees with liabilities, rely on delegated authority to executives, and may depend on private donors.

Furthermore, both sectors face challenges to their long-term sustainability, with declining public trust and increasing competition from market-oriented solutions to social problems.

A recent survey found that only 52% of Americans trust non-profits, highlighting the need for innovative solutions. While corporations may have more resources for intrapreneurship, non-profits and public organizations possess deep expertise in social issues and strong connections with relevant stakeholders, making them ideally suited to drive meaningful change.

The power of "doing more with less":

Similar to SMEs, both public and non-profit organizations need to "achieve more with less." Viewing themselves as organizations with a mission to serve the public or their beneficiaries, they can leverage intrapreneurship to deliver on their responsibilities and generate value for those they serve.

As we've seen, the question of who takes responsibility for tackling societal problems is leading to the increasing application of "systemic" intrapreneurship, ensuring that change is transformative, not performative.

Intrapreneurship: Beyond the corporate definition:

Our understanding of intrapreneurship is constantly evolving. It's clear that intrapreneurship can take many forms, varying across organizations, geographies, and sectors. This remarkable diversity highlights the potential