India Inc is wisely betting on intrapreneurship to incubate innovation

All our businesses, from legacy players to new-age startups, need to unlock the full potential of India’s demographic dividend. With time-to-market windows shrinking and customer expectations shifting, firms are moving away from rigid hierarchies towards innovation-fostering structures, identifying internal talent and giving them the freedom and resources to pursue ideas. 

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This model of ‘intrapreneurship,’ which empowers employees to innovate from within, is lean, scalable and aligned with shareholder interests. It keeps organizations future-focused while encouraging employees to think beyond incremental improvements. The upside? A culture of ownership, a bias for action and a pipeline of tested products and ideas ready for the market.

Companies have been devising unique approaches to embed entrepreneurship as a practice. Some business groups have set up in-house units, others are seed-investing through innovation funds, while many are contributing to well-known colleges and universities to boost research and entrepreneurial development.

Intrapreneurship offers a strategic edge: Fostering a spirit of entrepreneurship within the organization creates value for all stakeholders. Employees gain access to funds, mentorship, systems and teams, while employers benefit from early access to disruptive ideas, a live view of evolving consumer behaviour and potential new revenue streams. 

This is a symbiotic relationship that helps keep a business future-ready. Incentivizing entrepreneurial thinking within established organizations also serves as a talent magnet, attracting individuals eager to pursue innovation and risk-taking without the personal and financial strain of starting from scratch. It also reduces over-reliance on external funding, which is becoming more selective and returns-driven. 

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Little wonder that large companies are investing heavily in intrapreneurship. For many, hackathons and innovation challenges are a regular part of the annual calendar. 

These programmes have resulted in numerous successful internal ventures and improved innovation metrics, helping companies tackle challenges and stay on top of their game. They are also crucial for adapting to constantly evolving customer habits and increasing competitive intensity, as seen in the  e-commerce market with the rapid rise of quick commerce. 

Some of India’s most influential organizations have created cultures that consistently produce entrepreneurial talent. In the good old days, businesses like Wipro were seen as launchpads for ambitious people who went on to build their own ventures. 

Similarly, Infosys has long been recognized for the foundation it provides in problem-solving, discipline and leadership, qualities that are valuable in the world of entrepreneurship. 

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As India’s startup ecosystem has evolved, especially over the last 15 years, its focus has expanded beyond IT services to include consumer internet services, e-commerce and product-driven innovation. 

Businesses like Flipkart not only created leaders for the industry, they also attracted entrepreneurs to execute game-changing ventures. Flipkart’s entrepreneurial culture has been instrumental in incubating and nurturing a new wave of startups. By creating an environment that champions bold thinking, calculated risk-taking and collaboration, this e-commerce company has significantly contributed to new ventures. 

By supporting entrepreneurship, corporations contribute to meeting broad national goals such as job creation, economic diversification and innovation-led growth. As the focus shifts to frontier sectors like AI, EVs, green energy and storage systems, hydrogen fuel, drones and satellite communications, we can expect more action to come that would help fulfil the country’s ‘Make in India’ vision. 

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As major urban consumption centres mature and markets get saturated, opportunities lie in India’s Tier 2 and Tier 3 cities. Businesses will need local and culturally rooted solutions that don’t replicate their metro templates. ‘Intrapreneurs,’ with their close understanding of company values as well as on-ground challenges, are best placed to lead these projects.

The journey ahead isn’t without its challenges. India Inc must look beyond metros, extend opportunities to under-represented groups, especially women and marginalized communities, and institute long-term programmes for capability building. 

The future of Indian entrepreneurship cannot be drafted in isolation; it will be co-authored by forward-looking companies that treat entrepreneurship not as a department, but as a mindset. The key to success lies in keeping the flame of entrepreneurship alive within organizations. Corporate India must reward risk-taking and learn to recover fast from failure. That shift, already underway, could well define the next chapter of India’s growth story.

The author is an angel investor and independent director.