Intrapreneurship and the challenges that Latin America must face

Do you know what the intrapreneurship panorama is in Latin America? Find out here how it develops and the challenges it must face.

Intrapreneurship and the challenges that Latin America must face

Do you know what the intrapreneurship panorama is in Latin America? Find out here how it develops and the challenges it must face.

El intrapreneurship It occurs when an employee of an organization has the opportunity to undertake business within it. Currently, employees can present internal business ideas. In this sense, we are talking about a corporate venture that generates a new element of value.

Simultaneously, organizations are expected to leave traditional business models behind and focus on the needs that arise today (Barrero, 2021).

According to the Global Entrepreneurship Monitor (GEM, 2020), Latin America has recorded growth in its business dynamism, determined by this entrepreneurial activity. It is estimated that the region has 52,4% opportunities to create new business units or develop new products and services. Furthermore, the chances of it being through corporate entrepreneurship are high.

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Panorama of intrapreneurship in Latin America

This corporate venture involves innovation in new Business models and transformations through strategic renewal. Which can impact the organization through various results related to its operations. The most relevant impact is to identify business opportunities that generate additional benefits. Among these, a competitive advantage and access to other markets (Sánchez et al., 2020).

In Latin America, the intrapreneurship It is perceived as an ideal initiative to promote the search for young talent. A talent willing to contribute new business perspectives that are avant-garde, current and striking. In addition, it is constituted as an opportunity for professional development, which takes advantage of their capabilities for the growth of the organization (Sánchez et al., 2020).

Globally, between 50 and 54 countries participated in the Adult Population Survey (APS) and the National Expert Survey (NES) of the GEM 2019. Of them, 55,4% say they are active in preparation, implementation, leadership and support intrapreneurship. Among the Latin American countries, the following stand out (GEM, 2020):
• Chile, with 3,6%.
• Puerto Rico, with 2,1%.
• Guatemala, with 1,4%.
• Ecuador, with 1,3%.
• Colombia, with 0,9%.
• Brazil, with 0,6%.
• Panama, with 0,4%.
• Mexico, with 0,2%.

This still reflects the influence of traditional entrepreneurship, under a classic and unchanged model. However, the initiatives of intrapreneurship have gained ground and have a good profile, both in the adoption of corporate venturing in Latin America, as in the innovation and inclusion of new markets. Therefore, it is important to stimulate this type of development in Latin American organizations (GEM, 2020).

A recognized example of intrapreneurship is the multinational chain of stores Falabella based in Santiago, Chile. In 2018, it announced the purchase of Linio, the Latin American e-commerce platform. This acquisition was strategic to boost its position, not only in Chile, but in Peru and Colombia. From there, it increased its presence in eight Latin American markets and allowed the entry of new online competitors in the region (IESE, 2020).

Linio was bought by Falabella in 2018.

In Colombia, the case of Grupo Compunet, a SAP partner, is highly recognized. In 2004, it developed MyAgri, a solution based on SAP technology for the agricultural sector. It managed to reach 21 countries. However, the organization decided to sell it to another SAP partner. Later, in 2009, it began a similar project for the health sector: 

the MySiss solution, and another to connect shopkeepers: Tease. These platforms became spin off of Compunet that has external investors and functions as a startup (Bancolombia, 2021).

Main challenges of intrapreneurship in Latin America

El entrepreneurship Within organizations, it constitutes one of the most effective corporate strategies. This energizes work teams and advances a strategy of organizational innovation. It not only has an impact on the decisions of its leaders, but also broadens the panorama to actively involve employees (Sánchez et al., 2020).

In this sense, in Latin America the conception of entrepreneurship is stronger. However, it must be projected with a new organizational model that promotes the business opportunities identified by its internal entrepreneurs. For this, the main challenges that arise are (Sánchez et al., 2020):

  • Motivate the intrapreneurship in collaborators through alliances that generate value.
  • Improve the influence of the environment and promote initiatives within the organization.
  • Generate empowerment mechanisms for employees. This strengthens the change and considers it part of the business dynamic.
  • Train human talent with a strategic training plan to promote innovation.
  • Articulate networks that allow sharing and building together. That is, creating an efficient and competitive business fabric. Which must have the contribution of the State and the participation of both the public and private sectors.

El intrapreneurship It is a renewal strategy for organizations, through employee initiatives. This achieves a positive impact on organizational behavior and increases competitive advantage. It creates an innovative environment, facilitates processes and favors the economy, so you must constantly motivate yourself. Latin America has gained ground in this type of entrepreneurship, so it must plan to continue growing.

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