The prospect of a new business venture, albeit a startup of one entrepreneur or a venture inside a company, motivates people to achieve. An organization should encourage employees to innovate by providing the right working environment. Some conditions that foster innovation are encouraging new ideas, providing access to resources, supporting trial and error and failure, and multi-disciplinary teamwork.
Stability
In a firm that encourages innovation, or ways to improve operations and products and create new products, the owners and employees enjoy economic stability. This company adapts to changes in the market to stay competitive and therefore has a better chance for survival. Stakeholders, although not innovators themselves, share in the economic stability provided by innovation. Without new business ideas, a company might lose its relevance in the market, which can lead to scaling down operations or going out of business.
Tapping New Markets
Entrepreneurs and intrapreneurs find ways to tap new markets. Consider the person or group that develops a new market in an emerging economy. In this kind of economy, thousands or millions of people can become customers if the company emerges to meet their needs. When the new business venture grows, employment increases and other businesses crop up to provide services to workers of that business venture. Therefore, the emergence of a new market provides fuel for overall growth.
Sharing Resources
Intrapreneurs need access to upper management to share their ideas. Entrepreneurs can try out their ideas directly. Consider the business owner who starts a printing business. He orders printers, toner and copy paper from other providers, negotiating deals to manage his costs. He also provides a valuable service to customers. The printing business becomes part of a supply chain. Entrepreneurs (and intrapreneurs) brainstorm how to maximize relationships in the supply chain with and between suppliers, competitors and consumers.