employee entrepreneurship

7/29/2019 Employee Entrepreneurship

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EMPLOYEE ENTREPRENEURSHIP

Presented by :


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INTRODUCTION

Employee entrepreneurship is the act of behaving like

an entrepreneur while working within a large organization

They focus on innovation and creativity, and transforms an idea

into a profitable venture

Every organization needs employees who demonstrate

entrepreneurial qualities

Companies need to indentify such candidates during interview


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Entrepreneur vs. Employee Entrepreneur

Entrepreneur

A person who organizes and manages any enterprise, especially a

business, usually with considerable initiative and risk

Solely responsible for capitalization, marketing, and taxation &licensing requirements

Employee Entrepreneur

An employee of a large corporation who is given freedom and

financial support to create new products, services, systems, etc.,

and does not have to follow the corporations usual routines or

protocols


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Traits Of Employee Entrepreneurship

Ability to deal with risk

Results Oriented

Growth Potential

Team Player

Multi-tasking Ability

Creative Thinker


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Why Employee Entrepreneurship?

Firms create competitive advantages by discovering new andbetter ways to compete in an industry and bringing them tomarket

Encourage employees to be creative and to look for new ways toimprove your current way of doing business

An enterprise that does not daily innovate inevitably ages anddeclines

Their ideas are vehicles towards advancement

Increased value to organization


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Companies Which Have Done It

3MExample:- (Post it Notes)

3M scientist Spencer Silver invented a not so sticky adhesive

in 1968.

Spencer shared his idea through seminars in which he shared

the features (and benefits) of this semi-adhesive to fellow 3M

employees.

But no one really caught the vision of his product for five long

years. Finally, a co-worker, Art Frey, recognized the need for

Spencer's idea


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In 1974, a 3M Corporation employee Art Fry couldn't keep his

hymns marked properly in his church choir book.

After attempting various methods, he decided he'd try using some

non-permanent adhesive that was available at his workplace.

By placing this adhesive on the back of his markers, he found he

could keep them secured in place and then easily peel them off

when he was done


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The man took his new discovery to the management at 3M

With the company's support, the resourceful man researched and

developed a new product.

Twenty-five years later, Post-It Notes continues to be one of 3M's

top-grossing products.


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Creates an Internal Incubator to Support

Employee Projects and Innovation

Under Incubator, engineers can get 30 to 90 days away from theirregular work to develop ideas of their own into products.

Their ideas must first be developed into prototypes and clear tworounds of judging, with founder Reid Hoffman and CEO JeffWeiner involved in the final round.

Many ideas submitted to Incubator come from LinkedIns monthlyhack days, in which workers can win awards for small bits ofquickly written software.


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Case Study

Innovation Time Off program

This program empowered and encouraged to spend 20% of their

work time on projects that interest them and they think will benefit

Google and their customers

This program allows good ideas spread fast, encourages

collaboration, and fosters constructive input

For a Google employee to participate in the Innovation Time Off

intrapreneurship program they need to prepare and submit a

project proposal with a timeline


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Several Googles newest products and service and services, such as

Gmail, Google News, Orkut, and AdSense all were originated from

Googles Innovation Time Off intrapreneurship program


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BENIFEITS

"Fifty percent of what Google launched in the second half of 2005actually got built out of 20% time."


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SPIN OFF


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DEFINITION

The process of splitting off certain parts of the

company and found them as separate independent

businesses.

The shares of the new company are given to theshareholders of the existing company (on a pro rata

basis).

The transfer of product knowledge and knowledge

from the parent to the newly start up company is

the most important aspect.


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Its a event through which a new company is created and

separated from its parent company.

After the event there are 2 separate companies, each

with their own outstanding share capital.


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REASONS FOR A SPINOFF Focus on its core activities

More profitable

Spun of activities can be better developed on their

own The activities don't fit in the overall branding strategy

Seize opportunities

Management of the new company are employees

from the old company For takeover purpose

Tax advantages


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CHARACTERISTIC OF SPIN OFF

Two separate entities

Shares given on pro rata basis to shareholders

No funds change hands nor assets are revalued

Different from Equity carve outs, Splits offs and

split ups

Voluntary & Involuntary spin off


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EXAMPLE OF A SPINOFF An example of a spin off was that of a newly formed company called Reinet

Investments SCA from its Parent Company Financire Richemont SA.

Shareholders in Company Financire Richemont SA voted at the AGM (9

October 2008) to spin off its Richemont luxury goods business as part of a

planned restructuring of the firm.

It also sold off its stake in British American Tobacco Plc and set up a separate

investment unit called Reinet Investments SCA. Richemont owns a portfolio of

leading international jewellery, watch, writing instrument and accessories

brands including the Chlo fashion label.

What made this spin off so complex was that the spin off was actually a cross-

border corporate action event whereby the parent company is a Swiss listed

company and the spun-off entity a Luxemburg listed entity.


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THANK YOU !!

employee entrepreneurship

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