In this blog on Social Intrapreneurship, John Evoy of Irish Men’s Sheds, poses some interesting questions. His intention here is to start a conversation rather than provide the answers. Join the conversation email him at email@example.com
In the early stages of for-profit start-ups, a core way of building a team of motivated individuals, who have a vested interest in the success of your organisation, is to offer some equity. A tech start-up for example, could have three to five early stage team members who all share the equity and potential riches if their venture is a success. During the early stages of such company’s development, none of the team would be receiving an income but the equity sharing mechanism allows the team to grow, thus increasing the skill set, the capacity and the chances of success exponentially. This is often a very exciting, high energy phase of a company’s development when the lack of income is overcome by the expectations that great things lie ahead. Now we know that a main difference between the traditional entrepreneurship and social entrepreneurship is that the former is often motivated by financial gain or profit and the latter by a drive to solve a societal problem.
So is there a way to enthuse a potential partner to join us on the journey as we develop our socially motivated organisation? On a small number of occasions I have come across someone who really “gets it”; a person who can see the potential of our organisation and perhaps has a different skill set to mine and whose work could transform our young organisation. The problem is that I don’t yet have the funds to pay an additional staff member, no matter how much I would like to. In these circumstances it is unlikely that anyone would commit to working on our project without pay or equity.
Similar to sharing equity in the start-up phase many bigger firms are now promoting the concept of intrapreneurship. This is a way of getting high levels of innovation, hard work and forward thinking from their team and where there is little risk to the individual or the company. Intrapreneurship is defined as:
“Acting like an entrepreneur within a larger organisation. The term is derived from a combination of “intra” or internal, and “entrepreneurship.” Intraprenuers are usually highly self-motivated, proactive and action-oriented people who are comfortable with taking the initiative, even within the boundaries of an organization, in pursuit of an innovative product or service.”
Again the traditional partnerships or for-profit companies with share capital have the upper hand when it comes to taking advantage of this concept on intrapreneurship. They can offer bonuses or larger shares of future profits based on the innovation or ideas generated by their intrapreneurs.
This leaves us with a dilemma; we can’t offer equity or promise large future salaries but we need these talented and motivated individuals to come and work with us. How can we create the conditions or circumstances which would solve this problem? Unfortunately this post asks more questions than it answers, but just to start the conversation may be a good thing.
There are some examples of projects being led by more than one Social Entrepreneur, such as the excellent Soar led jointly by Tony Griffin and Karl Swan but they have been together from the start. I am starting this conversation to see if we can identify a way to bring someone on board who we meet along the way, and to appropriately reward them, but within the limits of the organisations current financial position.
If we were to find someone who we would love to have working with us and who is willing to get involved, one of the first things we have to do is to let go of control. Social entrepreneurs can often have a very solid sense of ownership with sometimes fixed ideas of how things should be. To work successfully with another entrepreneur we would need to flexible and open to new ideas.
Another possibility would be to hand a segment of the organisation, its functions and its potential earning capacity, over to our new partner or ‘Intraprenuer’. For example, if we need an improved online presence, we could hand over our website to a web developer / designer on the premise that he/she can keep some incoming advertising revenue that the site earns as their pay. This person would, of course, be someone you know and trust, who you have developed a strong relationship with and who shares a vision with you of how the organisation can grow into the future.
As I mentioned above this is only the start of the conversation. I would love to hear from you so please email me at firstname.lastname@example.org if you have any thoughts on this topic.
Irish Men’s Sheds Association,