Business - Entre/Intrapreneurship

Pages 31, 32, 36, 37 & 38

Entrepreneur definition

person who uses their initiative to spot a gap in the market, and takes personal and financial risk to set up the business, with the aim of making profit

start-up

newly established business

Factors of production

land
labour
capital
entrepreneurship

Reasons people become entrepreneurs

Financial Security
Self-employment
Independence
Limited career path

Financial Security

The entrepreneur thinks their income from the business will be more than working for someone else, and receiving a salary

self-employment

By starting their own business, they can employ themselves

Independence

They have autonomy over all decisions and operations of the business, e.g. opening hours and price

limited career path

setting up a business allows for new opportunites for growth and self-development

Intrapreneur

employee who comes up with innovative ideas for a business 

Ways to promote intraprenurship

Freedom to fail, financial rewards, teamwork, set up formal structure for intrapreneurship

Freedom to fail

Businesses should create a ‘freedom to fail’ culture where employees are not punished for trying out new ideas, even if they do not work out. When employees feel safe to share ideas they are more likely to innovate.

e.g. bubble wrap was originally wallpaper but the creators failed, then realised the potential of their idea as packaging.

Teamwork

teamwork allows for brainstorming, and each team member brings different ideas and contributes different perspectives to a discussion. therefore team can come up with more creative ideas than an individual.

FInancial rewards

Business should provide incentives to employees to compensate them for their good ideas.

Can be offered as bonus/profit share.

Motivates employees to be intrapreneurs as they earn more if they make a profitable idea.

Set up formal structure for intrapreneurship

Businesses should give employees enough time away from their day jobs to work on creative ideas.

E.g. Google allows employees to spend 20% of their time on company-related work that is of personal interest, e.g. Gmail.