History has proven time and again that companies must be able to innovate and change quickly to be in line with the expectations of their customers and the market that changes at an incredible speed. To do this, they need to utilize the creative power of their employees masterfully.
For this and other reasons, the need for corporate entrepreneurship is obvious, even more so when circumstances threaten companies’ productivity and growth potential. The market has fewer barriers to entry, more sophisticated competitors, and a generalized distrust in traditional management models.
To minimize the impacts, companies need to take more risks, deconstruct traditional models, and seek more innovative management systems so that their businesses do not become obsolete!
Although we live in a moment where businesses are increasingly active in the strategy of mergers and acquisitions to expand and grow, and in an attempt to become the ecosystem of their segment, intrapreneurship can be a way to increase the potential for success of companies significantly.
The term intrapreneurship, or corporate entrepreneurship, has been explored by many scholars and already shows that companies that develop this model can innovate in a truly disruptive way in their products, services, and processes, resulting in more growth and profitability. They begin to understand that mistakes are part of it and that instead of punishing their employees, they should recognize that it is the result of a probable innovation. The focus should not be on making mistakes but on learning.
Does this mean that employees should own or build companies? Definitely not! Here we are talking about entrepreneurial behavior, where the capacity for learning and the speed of execution to analyze markets or develop new products is much higher. But for this to happen, the company needs to develop a suitable environment, creating a system of positive reinforcement, making capital feasible, reducing bureaucracy, and having the support of top management.
If up to this point you were not yet convinced that every company should hire and develop entrepreneurs, I will list some advantages for every company to develop an entrepreneurial philosophy:
- This philosophy considerably increases the speed of the development of new products and services, which will result in a real competitive advantage;
- It causes a revolution in the management model, reducing barriers and promoting an entrepreneurial mentality;
- It promotes an environment favorable to innovators, helping the company to retain its best talent.
The purpose of this article is not to encourage people to start companies but to stimulate companies to understand the power of intrapreneurship as a form of differentiation, accelerating their innovation processes and leveraging their results.