PUNJAB COLLEGE OF TECHNICAL EDUCATION

REPORT
OF
ENTRAPRENEURSHIP
ON
"INTRAPRENEURSHIP IN INDIA"

SUBMITTED TO:-
Mrs. Harleen Mahajan SUBMITTED BY:-
Payal Mittal
Aman Jain
Manil Singla
Tanvi
BBA 3A
INTRAPRENEUR
An inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills
without incurring the risks associated with those activities. Intrapreneurs are usually employees
within a company who are assigned a special idea or project, and are instructed to develop the
project like an entrepreneur would. Intrapreneurs usually have the resources and capabilities of
the firm at their disposal. The intrapreneur's main job is to turn that special idea or project into a
profitable venture for the company.

• An Intrapreneur is dependent on the entrepreneur i.e. the owner.

• An Intrapreneur does not fully bear the risk involved in the enterprise.
• An Intrapreneur operates from itself.
• Funds are not raised by the Intrapreneur.
• Intrapreneur work for the business.
• Intrapreneur does not give any guarantee required by suppliers.
• Intrapreneur creates new ideas.

The term Intrapreneur was put to use in America in the late seventies. In America some of the
business executive left their jobs and started their own small business because they were not
given chance to test and implement their innovative ideas.

Later this group achieved a phenomenal success in their new ventures, In India also one may
find many of such cases. These executive turned entrepreneurs posed threat to the
organization they left. Gifford Pinchot III an American management expert in his famous book
intrapreneuring used the word Intrapreneur who left their own businesses.

These persons have strong desire of personal achievement. If they are allowed to test and
implement their new ideas in the organization, it will enable the organization to grow. The
companies should provide enough opportunities, financial and technical assistance to
intrapreneurs necessary for the development and application of their ideas. Intrapreneurship
is the practice of entrepreneurship by employees within an organization.
In 1992, The American Heritage Dictionary acknowledged the popular use of a new
word, intrapreneur, to mean "A person within a large corporation who takes direct
responsibility for turning an idea into a profitable finished product through assertive risk-
taking and innovation". Intrapreneurship is now known as the practice of a corporate
management style that integrates risk-taking and innovation approaches, as well as the
reward and motivational techniques that are more traditionally thought of as being the
province of entrepreneurship.

Features of Intrapreneurship:

Entrepreneurship involves innovation, the ability to take risk and creativity. An entrepreneur
will be able to look at things in novel ways. He will have the capacity to take calculated risk
and to accept failure as a learning point. An intrapreneur thinks like an entrepreneur looking
out for opportunities, which profit the organization. Intrapreneurship is a novel way of making
organizations more profitable where imaginative employees entertain entrepreneurial
thoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is
a significant method for companies to reinvent themselves and improve performance.

The Indian employment market is uncertain. The number of unemployed is ever

increasing. In this context, both the Central and State governments are working on
to develop entrepreneurship as a recourse to employment problems. In order to do
so, there needs to be specific skill and knowledge set needed from the individual who
is looking for entrepreneurship. In western countries, they have tried the concept of
Intrapreneurship who by virtue of his skill and knowledge set will be able to run an
organization on his own by working inside the confines of a parent organization.
Unemployment is the main problem that our country faces now. In this situation it is
necessary to become familiar with the multi dimensional aspects of
Entrepreneurship. Entrepreneur is a person who innovates, allocates and manages
the factors of production. This particular person has the ability to perceive latest
economic opportunities and to device their exploitation. This particular person is the
supplier of resources, supervisor, and coordinator and ultimate decision maker.
Entrepreneur has the greatest chance of success by focusing on a market niche
either too small or too new to have been noticed by established businesses. The
world facing second generation entrepreneurs is more complicated than the one in
which our parents had success. Technology, competition, and workforces are ever
changing in today's business environment and make up some of the most difficult
challenges for "new" entrepreneurs. Second generation entrepreneurs will hold the
economy of this country in their hands for many years into the new millennium. To
help new technologies come to market, many universities establish business
incubators for entrepreneurs hoping to turn leading edge research into marketable
products. This has also helped generate the interest among the second generation
entrepreneur. This is currently on in many universities, scientific and social science
institutions in India.

Entrepreneurs can be of different types. The main categories are:

• Solo operators-who works alone or have a few employees.

• Active partners-who is basically solo operators and has partners to contribute
money to the business without actively participating in it.
• Partners-who are those entrepreneurs who carry on the enterprise as a joint
activity, all of them actively participating in the business of the firm.
• Investors-are those who are creative and inventive, like to invent new
products and may need to setup a business to make them commercial and
market them.
• Challengers-are those entrepreneurs who get into business because of the
challenge it represents.
• Buyers-who tends to purchase business rather than start one itself, as it
appears to be less risky.
• Life timers-who sees their business as integral to their life.

Characteristics of an entrepreneur include spontaneous creativity, the ability and

willingness to make decisions in the absence of solid data, and a generally risk-
taking personality. An entrepreneur may be driven by a need to create something
new or build something tangible. As new enterprises have low success rates, an
entrepreneur must also have considerable persistence. Entrepreneurs are generally
highly independent, which can cause problems when their ventures succeed. In a
small company the entrepreneur is able to personally manage most aspects of the
business, but this is not possible once the company has grown beyond a certain size.
Management conflicts often arise when the entrepreneur does not recognize that
running a large stable company is different from running a small growing company.
That gives rise to the need for someone who doesn't have to go by the dictums of
the organizational structure and the needed procedural formalities in establishing
business for the organization. A person in a large organization empowered to create
new products without been constrained by standard procedure. Intrapreneuring is
the process of allowing--and encouraging--your employees to initiate and oversee
new ideas or improvements within the framework of your organization. It means
developing the kind of corporate culture that will allow employees to find all the
opportunities for innovation and ownership they're craving--without their having to
leave your organization to do it. Employers are slowly beginning to recognize these
drives, and some are finding innovative ways to meet these needs, so that their best
employees will have reasons to stay. They realize that they must provide challenges
for their rising stars. They must provide opportunities for autonomy and for
leadership. They must find a way, within the framework of the existing company, to
allow their star employees some room to create, to maneuver, and, therefore, to
thrive.

Intrapreneurs bridge the gap between inventors and managers; they take new ideas
and turn them into profitable realities. Without them there is an innovation gap. They
have vision and the courage to realize it. They can imagine what business and
organizational realities will follow from the way customers respond to their
innovations; they can plot the necessary steps from idea to actualization. To make
things work, intrapreneurs cross organizational boundaries to do other people's jobs.
They have a need to act, and they don't wait for permission to begin. Their
dedication frequently shuts out other concerns, including family life.

They pursue only goals that they set, that have personal meaning. Successful
intrapreneurs learn to overcome mistakes and to manage risk. The typical
intrapreneurial personality lies somewhere between that of the traditional manager
and that of the traditional entrepreneur. Successful intrapreneurs choose the right
idea from several they might be developing simultaneously in their minds. The idea
must be good for the market, good for the company, and good for the intrapreneur.
The idea will fit the market if there is a real customer need and the product can be
delivered in a cost effective manner at a price that gives adequate margins. It should
also be appropriate for the company culture and lead to growth and profits.

In the organizations, the idea should fit the intrapreneur's skills and experience. It
should inspire belief, enjoyment, and dedication. Ideas can come from
brainstorming, talking with co-workers in diverse departments, individual curiosity,
market research, and current company projects and technology. Intrapreneuring can
also involve improving a process within the corporation. Intrapreneurial leaders face
a basic paradox: the new venture team needs decisive centralized direction-setting
but, at the same time, it requires participatory management to do its best work.
Successful leaders breed a hybrid organization. They set the direction, give team
members freedom and respect, and listen to colleagues-but they make the final
decision. They build commitment by focusing on the goal of the intraprise and by
sharing the visionary task.

Building an intraprise includes four phases. This has to be taken care of by the
organization. The first is the solo phase in which the intrapreneur works alone. The
second is the network phase in which ideas is shared with a few close friends and
trusted customers. This evolves into the bootleg phase where the emerging team
works unofficially during spare hours. Finally, there is the formal team phase, which
requires delicate management of people and the mainline corporate structure. The
most fundamental measure of progress for an intrapreneur is the increasing freedom
to use corporate resources to build new businesses for the corporation. This reward
can be given (earned, actually) in the form of "intracapital." Intracapital is a
permanent discretionary budget; like a bank account, it is there until used. It is a
powerful motivator because it conveys a sense of ownership and guarantees
freedom. It is advantageous to the company because it encourages frugality and
allows the firm to bet on proven winners.

Intrapreneurs earn intracapital when their new ventures succeed for the corporation.
In a formal system, intrapreneurs also take some risks, such as foregone salary
increases and extra, unpaid labor; there is an agreed-upon method of measuring
success; profits are allocated to sponsors and team members, as well, in an agreed-
upon manner; and earned rewards and autonomy can not be taken away. To
survive, corporations of the future must change. They must balance necessary
structures and freedom of action to increase productivity. The first step is an
"interactive decentralization" that relies on voluntary customer-vendor relationships.
Executives can create an internal marketplace that pushes intrapreneurs and
employees toward the objectives of the corporation. Intracapital is the key ingredient
in making decentralization work because it generates free intraprise.
Intrapreneurship is a way of organizing business so that work again becomes joyful.
The wealth of corporations-like that of nations-is dependent on the freedom of their
people.

Intrapreneurs are enough like entrepreneurs to make top management nervous,

because of the unsettling myths about the entrepreneurial personality. Contrary to
prevailing opinion,

1. Entrepreneurs are driven by a need to realize their vision, not a desire for wealth
2. They work to minimize risk in order to realize their goals
3. They follow both intuition and hard analysis
4. They are honest with themselves and others and
5. They do not have a need for power. They are, in short, worthy of freedom and
responsibility.

Big companies can make the development of a new idea far easier for an
intrapreneur than the same task would be for an entrepreneur. They offer marketing
clout, a technology base, trusted co-workers, and information resources. They can
provide financial support for projects that would not be attractive to venture
capitalists. On the other hand, entrepreneurs escape the indecisiveness of the
corporation, tap the experience of sophisticated venture capitalists, and enjoy the
satisfactions of ownership.

The possible ways of identifying intrapreneurs is by:

• Identify the best and brightest employees.

• Identify the strengths and weaknesses of the star employees.
• Ask the at-risk employees--those most likely to leave--to come up with ideas
that might allow them to stay.
• Give them the chance to sell on their plans.
• Support these ideas in any ways the organization can. Find ways to make
employees even more excited about their own ideas, and they'll want to stay.
In the context of developments in Indian corporate world, the above deliberations
warrant a space for Intrapreneurs. In fact, Intrapreneuring is really a win-win idea—
where the very best employees become more energized and motivated, and want to
stay, and, if and when they're successful the company's bottom line improves.