4 ENTERPRISE AND ENTREPRENEURS ENTERPRISE AND ENTREPRENEURS Objectives

4 // ENTERPRISE AND ENTREPRENEURS

ENTERPRISE AND ENTREPRENEURS Objectives 2. 3. 1 Define enterprise. 2. 3. 2 Identify the importance of enterprise skills at home, at school, in the community, in government and in business start-ups. 2. 3. 3 Explain the basic enterprise skills. 2. 3. 4 Identify the characteristics of enterprising people. 2. 3. 5 Analyse the importance of enterprise in business and the community. (HL)

INTRAPRENEURSHIP • Key Terms – Intrapreneurship, intrapreneurs • In this section we will: – Define intrapreneur and intrapreneurship, using relevant examples. – Understand the benefits of intrapreneurship. – Explain methods of promoting intrapreneurship.

INTRAPRENEURSHIP • Intrapreneurship is entrepreneurial activity within a business. • Intrapreneurs act like entrepreneurs – they are innovative and creative, constantly looking for ways of improving and growing the business – but because they are employees, any financial risks do not affect them personally. For example, the ‘Like’ button for a post or comment on Facebook was a result of a ‘hackathon’, a session where coders and engineers were given the opportunity to create and develop ideas.

Promoting intrapreneurship • Entrepreneurs should encourage intrapreneurship within their business, as it can have many benefits, including new products, a more efficient process, greater productivity, a more enjoyable workplace and business growth. • Intrapreneurship can be promoted in the following ways: – Empowering employees: Employee empowerment places real power, responsibility and authority in employees’ hands. It encourages creativity by allowing employees greater freedom in how to do their work on a daily basis.

Promoting intrapreneurship – Creating an enterprise culture: An enterprise culture within an organisation encourages innovative thinking and does not treat mistakes as disasters. This atmosphere gives staff the freedom to be creative without worrying about negative consequences. – Rewarding staff: Financial rewards for effort and creativity. These could be a mixture of pay, incentives and benefits, e. g. a bonus, profit-sharing scheme or share ownership scheme. – Encouraging teamwork: Entrepreneurs can encourage teamwork and the circulation of ideas among employees by facilitating brainstorming sessions and quality circles.

Promoting intrapreneurship – Providing resources: Resources (e. g. time or money) are made available to employees to pursue their ideas. Google has a ‘ 20% Time’ programme, which encourages engineers to spend 20% of their work time on ideas that interest them. – Offering training programmes: Training programmes are offered to employees and management, e. g. on how to develop new ideas within the business.

Think Tank Explain the term ‘intrapreneur’. Intrapreneurship is entrepreneurial activity within a business. Intrapreneurs act like entrepreneurs – they are innovative and creative, constantly looking for ways of improving and growing the business – but because they are employees, any financial risks do not affect them personally.

Think Tank Describe three benefits of intrapreneurship within a business. New products; a more efficient process; greater productivity; a more enjoyable workplace; business growth.