MBS MULTITECH BUSINESS SCHOOL date:……………………………………………..

a. Decentralization: Giving power and decision making to

INTRAPRENEURSHIP
smaller units of the business organisation through individuals.
This is where people employed by an entrepreneur work by being creative
This is made possible because intrapreneurs as innovative
and innovative. In this aspect these people don’t have authority over the
workers be found at all levels of an organisation. This
larger business but the entrepreneur implements their innovations.
provides a high degree of autonomy that is a requirement for
It may also mean an entrepreneur with in an entrepreneur.
an innovative environment.
b. Creating project teams: These are specifically formed and
Intrapreneurship prevails in a business where internal operations of the
tasked with producing new products, services, and processes
business encourage people to be creative and innovative.
for a given period of time. Project teams’ with in an
This is usually common with the businesses that are run on a large scale such
organisation be assigned the duty of studying a new
that there is need to employ workers who are managers of strategic business
development outside the organisation for stated time lag. This
units where creativity is required.
exposes them to new methods of business management.
The skills and tasks are very strategic to the overall performance of the
c. Creating a system that encourages staff to be
organisation since they posses’ unique attributes.
independently creative through recognition and rewarding
An organisation therefore needs to bring out new changes that will enable
of their efforts. This promotes competition for new products
such workers have are trained stay in the organisation. This prevents the best
among the employees.
mangers from leaving the organisation.
d. Creating strategic alliances with other firms to persue ideas
that require combined efforts.
ORGANIZING FOR INTRAPRENEURSHIP
The manager should be encouraged to creative with in the organisation other
Classification of Intrapreneurship
than setting up their own businesses. In this case such managers need to be
Different business organisations do approach intrepreneurship in
supported and given freedom. For this to happen businesses should be
different ways as explained below:
organised in the following ways;
(C ) Administrative Intrapreneurship

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MBS MULTITECH BUSINESS SCHOOL date:……………………………………………..

Under this the economy forms an administrative arm within its

organisational structure with a reason of spearheading and encouraging  Team work i.e. people must join hands for a common cause.
greater creativity and innovation.  Flexibility i.e. able to change and to accept criticism
This may therefore be in form of an administrative department in charge of  Creativity i.e. ability to think of a developmental idea
new developments e.g. research and development department.  Innovative i.e. be practical in changing theoretical ideas into real
(D ) Opportunistic Intrapreneurship business.
The company opens up its structure to allow individuals persue opportunities
both internal and external to the organisation with the company using its CONDITIONS NECESSARY FOR INTRAPRENEURSHIP
facilities to implement. TO TAKE PLACE
In this regard opportunistic intrapreneurs look for and exploit their There should be open encouragement and support of people who
opportunities and then management facilitates their implementation. come up with new ideas.
(E ) Acquisitive intrepreneurship (i). Experimentation: the organisation should permit some
The companies here look out for individual with intrepreneurship in other degree of experimentation i.e. trials and errors should
firms; employ them to benefit from their creativity. They can acquire them be made.
through mergers, takeovers, join ventures, and buy-outs (ii). Rewards: i.e. recognition and remuneration of
(F ) Imitative Intrapreneurship intrapreneurs
Companies take advantages of other companies innovations and then copy (iii). Conducting of entereprenual meetings
them with a slight superior improvement and then control the market in that (iv). Top management support: the original owners of the
new innovation. Therefore the original innovator is set to lose. business have to welcome and support them
(G ) Incubative intrapreneurs (v). Leadership: Intrapreneurship is a slow process that
This is where the company develops intrapreneurs from outside and then needs a head.
absorbs their ideas. It therefore set up sub-autonomous research and (vi). There should be availability resources
development units and supports them with capital, and other resources.

COMMON FEATURES OF INTRAPRENEURS

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MBS MULTITECH BUSINESS SCHOOL
IMPORTANCE OF INTRAPRENEURSHIP
Intrapreneurship as a business mode emerges from another well
established bigger organization and in so doing it comes with a number of
benefits. The following are some of the common importance.
Diversification
Intrapreneurship comes with a new but different business. This results into
having more than one business with in the same location. This increases the
chances of survival of the overall organization.
Increased income
When a new venture starts, an d it operates well, more income in terms of
profits may be generated.
Competitive advantage
Intrapreneurship comes with innovation which may yield more new unique
products and processes. This may give the business a better business
advantage over the rivals.
Reduced labour turnover
Labour turnover refers to the rate at which workers leave and join the
organization. With a reduced labour turnover, the companies able to save
money that it would spend in training new recruits that join so frequently.
Good company image
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date:……………………………………………..
Any company that welcomes and promotes intrepreneurship with
in its structure will gain more reputation in the community.
Prestige among the workers
If workers work for an employer who motivates them through
financially, they are most likely to increase their performance.
This makes them develop positive attitudes towards the
employer.
Job security
The workers who possess the qualities of intrepreneurship are
most likely to keep their jobs for a long period with minimum
risks of losing them as compared to those who are not.
BARRIERS TO INTRAPRENEURSHIP
Intrapreneurship is faced with a number of limiting factors which
include:
Resistance to change
Intrapreneurship is associated with changes that may disorganize
the internal arrangement. This may be prohibited by the current
workers who:
 Have worked aiming at protecting their jobs or positions
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MBS MULTITECH BUSINESS SCHOOL
 Don’t like too many innovations that may increase the
number of responsibilities and work load.
Management decision
Decisions of managers may be slow especially in cases where it may involve
a lot of commitment in terms financial support to the intrapreneurs.
Organizational barriers
Standard work practices may not help people to be creative. This is common
in cases where there are already established internal controls and procedures
to be observed and fully followed by each worker eg working full time
without free thinking periods.
Experience
According to P. Pinchot, experience has shown that new ventures that stated
with in the organization perform worse that those that started independently
by prospective intrapreneurs.
Lack of enough Resources
Establishment of Intrapreneurship involves commitment or resources both
financial and material and non material plus time that is usually limited.
Lack of team work
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date:……………………………………………..
Innovation with in an organization requires a lot of cooperation
and good will from other workers whose absence may jeopardize
Intrapreneurship.
Lack of experimentation
Total commitment without testing of the innovative ideas of the
workers is less helpful to the business.
Lack of support of top management
The original entrepreneurs may welcome the Intrapreneurship
ides but fail to support these creative efforts which may
eventually make the creative workers discouraged.
Hijacking of ideas
Ones productive ideas may be copied by another person or
external party that may quickly implement them their by blocking
the chances of application of the ideas by the original
intrapreneur.
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