What Is Intrapreneurship? Why Try It Before Starting a Business

Starting a business is a dream for many people, but the journey also comes with countless challenges such as financial risk, competitive pressure and fear of missing out (FOMO) that grows as you watch success stories from other startups. So, is there a way to pursue your passion for business while reducing risk and making use of the resources you already have? Intrapreneurship – the “internal startup” model is the ideal choice. Let's MONA Media look at why you should go through intrapreneurship before starting a business in this article. 

What is intrapreneurship?

Intrapreneurship also known as an internal startup model within a company, where employees have the chance to develop and and carry out creative projects like an entrepreneur, but inside the very company they work for, while also receiving support and and resources from the company. These employees are called intrapreneurs, and act as pioneers in finding new solutions or improving existing products and services. Key features of intrapreneurship include:

• Creative freedom: Companies encourage intrapreneurs to propose and develop new ideas, much like an independent entrepreneur.
• Lower risk: Unlike independent startups, intrapreneurs don't face financial pressure or bankruptcy risk.
• Profit sharing: Some companies have a policy of sharing profit from intrapreneurship projects with the people involved.
• Optimizing company operations: Intrapreneurs don't just focus on developing new products but also improve processes on screen in the business to raise operating efficiency.

Starting a business is not only about making a living, it is a whole journey from hauling furniture, even a sofa, up to the 4th floor yourself, to the point of scaling up to a much larger office and team. The video below is not just “the story of MONA's office”, it is also the memory of a startup in the truest sense. Click the video to watch now!

Products that came from intrapreneurship

Intrapreneurship usually thrives in large technology corporations, where creativity comes first. Here are some standout products that prove the power of the intrapreneurship concept:

• Macintosh: One of the A standout case study of the intrapreneurship model is the Macintosh, the predecessor of the famous Mac computer line, which Steve Jobs himself called intrapreneurs in a 1985 interview. Macintosh's success not only took Apple to the top but also helped make the intrapreneurship model more popular in the business world.
• PlayStation: The PlayStation game console came from the vision of Ken Kutaragi, a talented intrapreneur while he was working at Sony. The project was first developed as a partnership between Nintendo and Sony, but after the two companies ended their relationship, Ken led the team to keep pursuing the idea. The result was the Sony PlayStation, an iconic game console line that made a big mark on the global interactive entertainment industry.
• Gmail: At Google, employees are empowered to use 20% of their working time to pursue creative ideas of their own. Thanks to that, Gmail, one of the world's most popular email services, was born in an environment that encourages intrapreneurship.

Origin of the term intrapreneurship

The term intrapreneurship was first introduced by American entrepreneur Gifford Pinchot and his wife in 1978. In their book, they presented the concept of Intra-Corporate Entrepreneurship, referring to the entrepreneurial spirit inside large companies.

Gifford Pinchot stressed the importance of encouraging employees to be creative and develop new ideas without being bound by rigid processes. This laid the groundwork for intrapreneurship, helping companies make better use of internal resources and drive stronger innovation in an era of nonstop competition.

Why is intrapreneurship becoming more popular?

In a fiercely competitive market, especially in a fast-moving technology industry with powerful corporations like Amazon, Google or Netflix, encouraging employees to be creative and test ideas has become an important strategy. This is the ideal environment for intrapreneurship to grow.

When the COVID-19 pandemic hit, the need for continuous improvement became more urgent than ever. Businesses needed creative solutions from within to keep operating and adapt to unpredictable changes.

What's more, the intrapreneurship concept is increasingly popular because of its ability to make the best use of human resources and and create a tight link between employees' creative output and the company's interests. With these clear benefits, intrapreneurship is becoming an essential part of modern management strategy in many organizations.

Benefits of intrapreneurship for startups

Intrapreneurship not only brings value to companies but also helps individuals gain valuable experience for a later startup journey. This approach creates a safe but challenging creative environment, that drives constant innovation from both the organization and its employees. Here are the clear benefits the intrapreneurship concept brings:

For the organization

• Driving innovation and creativity: Organizations that encourage intrapreneurship become a top destination for creative talent, helping the company lead trends and strengthen its competitiveness in the market.
• Making the most of internal resources: Employees are encouraged to develop new ideas without looking for outside funding. This not only saves cost but also adds value for the company.
• Reducing the risk of falling behind: With a market that keeps moving, traditional companies fall behind easily without a spirit of innovation. Intrapreneurship is the solutions for helps the organization accept change, drive growth and avoid the risk of decline.

For startup founders

• Limited financial risk: Taking part in intrapreneurship lets employees test ideas without worrying about personal financial failure, because the company covers the costs.
• Gaining practical experience: Even if a project fails, you still learn valuable lessons to sharpen your startup skills for the next projects.
• A safe startup environment: Starting up with a “safety net” helps you keep your creative and entrepreneurial spirit even after early failures.
• Building lasting skills: If it succeeds, you can keep expanding the project or use the skills you've built to take on bigger goals.

The above should help you understand what intrapreneurship means and why this model is becoming more common in modern companies. We hope this article has given you a full picture of intrapreneurship and inspired you to apply the model in real business. If you are passionate about creating, take the chance and become an outstanding intrapreneur inside your own organization!

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