by Ho Hoang - Professor of Corporate Strategy in Masters and Executive-level programs, focusing on competitive and cooperative dynamics of incumbent and entrepreneurial firms at ESSEC Business School.
Employee entrepreneurship refers to the creation of new ventures within an existing organization, often aimed at introducing innovative ideas and benefiting the organization. In a study involving physicians in the UK National Health Service (NHS), the transition from being an employee to an entrepreneur within the same organization was explored.
These employee entrepreneurs had various motivations, with some intending to innovate and improve the NHS, while others had a deep attachment to the organization and aimed to enhance its functioning. However, they faced challenges, such as a mismatch between their job responsibilities and innovation goals, leading them to seek resources and support outside the organization. These individuals often maintained their NHS affiliation, seeing the organization as a source of inspiration, knowledge, and opportunities for their ventures.
The desire to remain connected with the parent organization influenced the design of their entrepreneurial projects, which often had interdependence with the NHS, serving as customers, advisors, supporters, or referral sources. This research highlights the importance of identity in driving hybrid entrepreneurship, where individuals simultaneously pursue new ventures while retaining their existing employment. Employers can capitalize on this by developing policies and support systems to encourage and promote interdependent ventures, contributing to more innovative organizations. Employee entrepreneurship offers a valuable pathway for employees to align their career and entrepreneurial goals while maintaining their organizational membership.
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