The concept of intrapreneurship was first formally introduced by Gifford Pinchot III in his 1978 book titled “Intrapreneuring: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur.” In this work, Pinchot emphasized the importance of employees acting as entrepreneurs within their organizations, taking initiative, and driving innovation without necessarily leaving the company to start their own businesses.

Intrapreneur is an employee and entrepreneur is free and the leader of the operation.

Pinchot’s key idea was that individuals (referred to as “intrapreneurs”) within large organizations can take on entrepreneurial roles—developing new products, services, or processes—without the risk and uncertainty associated with starting a business from scratch. Instead, these individuals leverage the resources and stability of their current employer.

The intrapreneurship theory helps organizations tap into the creativity and drive of their employees by giving them the freedom and support to innovate from within.