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Hi, I’m Dima, the founding father of Pitchbob.io – AI-Pilot for corporate entrepreneurs. Our product focuses on supporting intrapreneuring in corporations by increasing worker involvement and entrepreneurial behavior. However, firms first need people with entrepreneurship in their teams to involve employees in entrepreneurial initiatives. In this text he examines and why corporations should employ entrepreneurs.
So how and why should corporations employ entrepreneurs? At first glance, the answer could appear obvious: they should not. Entrepreneurs are perceived as individuals who build startups and take a risk, while corporate employees should manage processes in predefined business models. However, reality is much more complex.
In many ecosystems based on entrepreneur’s innovations-especially technological entrepreneurs-perceived as contemporary icons. They encourage the admiration of each ambitious teenagers and talented corporate professionals. While many seek to mimic entrepreneurs, only a small faction ever performs a jump. Even less persistent after their first defeat. Most people entail the stability of traditional employment, quality, which appears to be incompatible with the risk and uncertainty related to entrepreneurship.
But among those that try to not fall, some do not quit. These are individuals who pretend to be their approach, try again and finally succeed. For corporations, this perseverance makes entrepreneurs appear to be ideal candidates. Entrepreneurs bring leadership skills, experience, network of contacts and specialist knowledge – features that corporations want. However, entrepreneurs are also perceived as unpredictable, excessively self -sufficient and difficult to integrate with rigid hierarchical structures.
This duality makes employing entrepreneurs each tempting and a discouraging perspective for corporations. While their potential value is undeniable, their independence and an unconventional approach to work often conflict with the traditional corporate environment.
Corporate dilemma
Corporations have long been experimenting with ways of involvement of entrepreneurial talent. Acquiring startups to achieve access to their teams, offering salaries above the market in order to lure entrepreneurs in corporate roles and launch the accelerator programs are just some of the strategies used. However, these approaches often do not bring lasting results.
Entrepreneurs employed by accelerators or sponsored by corporate events rarely bring the expected influence. Many are not real entrepreneurs, but people looking for stable employment. Startup teams purchased through M&A contracts often fulfill their contractual obligations and go to the introduction of latest projects. Even those that remain often lost the advantage of entrepreneurship, becoming indistinguishable from the existing labor force of the corporation.
What corporations must know about entrepreneurs
To successfully cooperate with entrepreneurs, corporations must learn to grasp their way of considering. Entrepreneurs value freedom and independence above all. They develop in environments where they’ll make decisions about what to do, learn how to do it and when to act. Attempts to impose excessive control or rigid structures of them.
Entrepreneurs are also naturally oriented. They focus on execution reasonably than prolonged planning. They consider risk as opportunities and have an inseparable need to make use of market capabilities before they disappear. This decision often contrasts with a slower, consensus nature of constructing corporate decisions.
In addition, entrepreneurs are accustomed to responsibility. They do not need – and often do not tolerate – micromanipement. Instead, they expect the freedom to experiment, failure and iteration without fear of criminal consequences.
Entrepreneur-residence model
The simplest strategy to involve entrepreneurial talents is by Entrepreneur-resident (EIR) model. This approach allows entrepreneurs to act in an environment that is in line with their strengths without disturbing the existing corporate structures. Basically, the EIR model provides entrepreneurs with “sandbox” to introduce innovation, experimenting and developing latest ideas, while the corporation uses their energy and specialist knowledge.
In this role, entrepreneurs can contribute to generating latest ideas, study alternative business models and revive sleeping projects. Their latest perspective often results in solutions that may be neglected by others in the organization. By creating a dedicated space for entrepreneurial work, corporations can use the progressive potential of those people without suppressing their creativity.
Value of entrepreneurs in corporations
Employing entrepreneurs in appropriate conditions can transform the corporate innovation ecosystem. Entrepreneurs bring a unique combination of features that drive progress. Their ability to query the establishment often discovers the possibility of growth, which suggests that others lack. They are not limited by internal policy or traditional work flows, which allows them to approach problems with fresh eyes.
In addition to generating ideas, entrepreneurs stand out during enforcement. Their practical approach can breathe latest life in detained research and development projects or neglected ideas. In addition, their readiness to experiment and take a calculated risk often accelerates the development of latest products, services or business models.
Perhaps, most significantly, the presence of entrepreneurs in a corporation can encourage others. Their spirit of entrepreneurship is contagious, encouraging employees to think more creative and accept innovation in their very own roles. Over time, this may be conducive to cultural changes, creating a more dynamic and future organization.
Creating the right environment
To fully use the potential of entrepreneurial talents, they have to offer appropriate incentives and working conditions. Financial motivation is crucial because entrepreneurs often prioritize long -term profits from immediate prizes. Ensuring compensation based on capital, similar to options related to the success of specific projects, can adapt your interests with the interests of the corporation.
The need for autonomy is equally vital. Entrepreneurs are developing in environments where they have the freedom to make decisions and actions based on their ideas. Bureaucratic processes and excessive supervision will only distract them. Instead, corporations should focus on creating flexible structures that allow experiments and risk taking.
Understanding the form of employed entrepreneur is also crucial. Some entrepreneurs are “sprinters” who are leading in the introduction of latest ventures, but lose their interest when the initial excitement disappears. Others are “marathonists” who are able to follow the project through scaling and growth phases. Adaptation of roles and incentives to those profiles ensures higher matching and greater likelihood of success.
Employing entrepreneurs is not about transforming them into traditional employees – it is about creating an environment in which their unique skills and way of considering can develop. Thanks to the proper approach, corporations can unlock the full potential of entrepreneurial talents, drive innovations, solve complex problems and remain competitive in a rapidly changing world.
By adopting models similar to an entrepreneur in a residence and supporting a culture that values creativity, risk and independence, firms can achieve the better of each worlds: stability of the corporate structure and destructive energy of entrepreneurial considering. The way forward for innovation is to fill in these two worlds, and the query stays – how did your organization accept it?