MBS

MULTITECH BUSINESS SCHOOL

date:«««««««««««««««««..

INTRAPRENEURSHIP
This is where people employed by an entrepreneur work by being cre ative and innovative. In this aspect these people don·t have authority over the larger business but the entrepreneur implements their innovations. It may also mean an entrepreneur with in an entrepreneur.

a. Decentralization: Giving power and decision making to smaller units of the business organisation through indivi duals. This is made possible because intrapreneurs as i nnovative workers be found at all levels of an organisation. This provides a high degree of autonomy that is a requir ement for an innovative environme nt. b. Creating project teams: These are specifically formed and

Intrapreneurship prevails in a business where internal operations of the business encourage people to be creative and innovative. This is usually common with the businesses that are run on a large scale such that there is need to employ workers who are managers of strategic business units where creativity is required. The skills and tasks are very strategic to the overall performance of the organisation since they posses· unique attributes. An organisation therefore ne eds to bring out new changes that will en able such workers have are trained stay in the organisation. This prevents the best mangers from leaving the organisation.

tasked with producing new products, services, and processes for a given period of time. Project teams· with in an organisation be assigned the duty of studying a new development outside the orga nisation for stated time lag. This exposes them to new methods of business manag ement. c. Creating a system that encourages staff to be indepe ndently creative through recognition and rewarding of their efforts. This promotes competition for new products among the employees. d. Creating strategic alliances with other firms to persue

ORGANIZING FOR INTRAPRENEURSHIP The manager should be encouraged to creative with in the or ganisation other than setting up their own businesses. In this case such managers need to be supported and given freedom. For this to happen businesses should be organised in the following ways;

ideas that require combined efforts.

Classification of Intrapreneurship Different business organisations do approach intrepreneu rship in different ways as explained below: (C ) Administrative Intrapreneurship

BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.com

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join ventures. (vi).e.e. (ii). Experimentation: the organisation should permit some degree of experimentation i.com 2 ..e. (i). This may therefore be in form of an administrative department in ch arge of new developments e.MBS MULTITECH BUSINESS SCHOOL date:«««««««««««««««««.e. (E ) Acquisitive intrepreneurship The companies here look out for individual with intrepreneurship in other firms. Flexibility i. Under this the economy forms an administrative arm within its organis ational structure with a reason of spearheading and encouraging greater creativity and innovation. There should be availability resources     Team work i. ability to think of a developmental idea Innovative i. and other resources. (D ) Opportunistic Intrapreneurship The company opens up its structure to allow individuals persue opportu nities both internal and external to the organisation with the company u sing its facilities to implement. CONDITIONS NECESSARY FOR INTRAPRENEURSHIP TO TAKE PLACE There should be open encouragement and support of people who come up with new ideas.e. people must join hands for a common cause. employ them to benefit from their creativity. able to change and to accept criticism Creativity i. They can acquire them through mergers. (G ) Incubative intrapreneurs This is where the company develops intrapreneurs from outside and then absorbs their ideas. be practical in changing theoretical ideas into real business. (iii). (iv). In this regard opportunistic intrapreneurs look for and exploit their oppo rtunities and then management facilitates their implementation. Therefore the original innovator is set to lose. and buy -outs (F ) Imitative Intrapreneurship Companies take advantages of other companies innovations and then copy them with a slight superior improvement and then control the ma rket in that new innovation. trials and errors should be made. recognition and remuneration of intr apreneurs Conducting of entereprenual meetings Top management support: the original owners of the business have to welcome and support them Leadership: Intrapreneurship is a slow process that needs a head. (v). research and development department. COMMON FEATURES OF INTRAPRENEURS BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo.e.g. It therefore s et up sub-autonomous research and development units and supports them with capital. takeovers. Rewards: i.

The following are some of the common importance. This results into having more than one business with in the same location. more income in terms of profits may be generated. Increased income When a new venture starts. Diversification Intrapreneurship comes with a new but different business. an d it operates well. This may give the business a better business advantage over the rivals. This i ncreases the chances of survival of the overall organization. . Good company image Any company that welcomes and promotes intrepreneurship with in its structure will gain more reputation in the commun ity.com 3 which include: BARRIERS TO INTRAPRENEURSHIP risks of losing them as compared to those who are not.. This makes them develop positive attitudes towards the e mployer. This may be prohibited by the current workers who: BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo. With a reduced labour turnover. Job security The workers who possess the qualities of intrepreneurship are most likely to keep their jobs for a long period with minimum Competitive advantage Intrapreneurship comes with innovation which may yield more new unique products and processes. the companies able to save money that it would spend in training new recruits that join so fr equently. Prestige among the workers If workers work for an employer who motivates them through financially. they are most likely to increase their performance.MBS MULTITECH BUSINESS SCHOOL date:«««««««««««««««««. Resistance to change Intrapreneurship is associated with changes that may diso rganize the internal arrangement. Intrapreneurship is faced with a number of limiting factors Reduced labour turnover Labour turnover refers to the rate at which workers leave and joi n the organization. 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.

Lack of support of top management The original entrepreneurs may welcome the Intrapreneurship ides but fail to support these creative efforts which may eve ntually make the creative workers discouraged. Lack of team work BY AMBROSE TUBENAWE 0772467417 tubenawea@yahoo. Pinchot. experience has shown that new ventures that stated with in the organization perform worse that those that started i ndependently by prospective intrapreneurs.   Have worked aiming at protecting their jobs or positions Don·t like too many innovations that may increase the number of responsibilities and work load. Innovation with in an organization requires a lot of cooperation and good will from other workers whose absence may jeopar dize Intrapreneurship. 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. Ones productive ideas may be copied by another person or e xternal party that may quickly implement them their by blocking the chances of application of the ideas by the original intr apreneur. Management decision Decisions of managers may be slow especially in cases where it may i nvolve a lot of commitment in terms financial support to the intrapreneurs. Organizational barriers Standard work practices may not help people to be creative. Lack of enough Resources Establishment of Intrapreneurship involves commitment or resources both financial and material and non material plus time that is usually l imited. Lack of experimentation Total commitment without testing of the innovative ideas of the workers is less helpful to the business..com 4 . Hijacking of ideas Experience According to P.MBS MULTITECH BUSINESS SCHOOL date:«««««««««««««««««.