3.4.1 Regenerative entrepreneurship and intrapreneurship
Helpful prior knowledge and learning objectives
Helpful prior learning:
Section 1.1.1 The economy and you, which explains what an economy is and how it is relevant to students’ lives
Section 1.1.2 The embedded economy, which explains the relationship between the economy and society and Earth’s systems
Section 1.1.4 Regenerative economies, which explains how circular, distributive and caring, needs-based and sufficient economies can meet human needs within planetary boundaries
Section 1.3.3 Human needs, which explains the distinction between needs and need satisfiers
Section 1.3.4 Doughnut Economics model, which explains a model for considering meeting human needs within planetary boundaries
Section 1.4.1 Biomimicry for economic design, which explains how Nature’s Unifying Patterns provide principles for regenerative economic design
Section 3.3.1 The deep design of firms, which explains the major transitions that business needs to make to meet human needs within planetary boundaries
Section S.1 Systems thinking, which explains what a system is and why systems thinking is useful. (coming soon)
Learning objectives:
distinguish between the roles of entrepreneurs and intrapreneurs in regenerative business
When you hear the word entrepreneur, what comes to mind? If you’re like many people, you might think of an individual, most likely a man, a creative genius who comes up with a brilliant idea and builds a highly profitable business almost by himself.
But the reality of starting a business is much different. Rarely does one person alone create an innovative product. New ideas build on the work and thoughts of others. Turning an idea into a successful product involves collaboration between many people.
There are also many other factors that make a business possible: unpaid and unrecognised care work in the household (Topic 2), political stability, laws, and regulations (Section 3.2.3),infrastructure, social norms, and even the natural environment. As you've learned in this topic, businesses and their markets are always and everywhere socially and ecologically embedded.
Designing regenerative economies requires all kinds of people to take action to meet human needs within planetary boundaries. Entrepreneurs and intrapreneurs are key players in this process.
Figure 1. Every entrepreneur is supported by a huge number of other people, their relationships and expertise
(Credit: Picryl, public domain)
What is entrepreneurship and what skills do people need to be entrepreneurs?
Entrepreneurship involves creating, launching, and managing a new business. In today’s world, with its serious social and environmental challenges, new businesses must focus on meeting human needs within the planetary boundaries. We can't afford businesses that are only about profit anymore. If a business idea doesn’t serve both people and the planet, the resources—whether human/social, material, or financial—should be redirected toward meeting real needs in the economy.
Figure 2. The five design elements to reconsider for business transformation
(Credit: DEAL, CC-BY-SA 4.0)
This is a big change from the way people have previously thought of businesses. Until recently social enterprises have been treated as niche activities. Now, every business must operate this way. To figure out where to direct their energies, entrepreneurs should focus on the five design elements of the Doughnut Economics model (Subtopic 3.3): purpose, networks, governance, ownership, and finance. A quick reminder:
Purpose: Why does the business exist? What human need does it meet, or how does it strengthen social and ecological systems?
Networks: Who is interested in this business, and how can the business share its benefits with its many stakeholders?
Governance: How can the business be managed to ensure a long-term focus on regenerative practices?
Ownership: What legal structure will support, not weaken, the business’s commitment to regeneration?
Finance: Where will the business get funding that allows the flexibility and time to its regenerative purpose?
In this challenging environment, entrepreneurs need a combination of traditional and new skills. The well-known skills of risk-taking, problem-solving, persistence, optimism, communication, persuasion, organisation, and leadership are still essential. But regenerative entrepreneurs must also understand the social foundation for human well-being and planetary boundaries (Figure 3). They need a deep understanding of their community’s needs and basic ecology, combining different areas of knowledge in their work.
Figure 3. The Doughnut Economics model showing the “safe and just space for humanity” that entrepreneurs need to understand
What is intrapreneurship and what skills do people need to be intrapreneurs?
While entrepreneurs start new businesses, intrapreneurs create change within existing organisations. Intrapreneurs are employees who use entrepreneurial skills to develop new products, processes, or structures that align with the company’s goals.
Both entrepreneurs and intrapreneurs are changemakers and share many similar traits. Entrepreneurs have more freedom to shape businesses from the ground up, but take on more financial risk. Intrapreneurs, on the other hand, often enjoy more financial security, but may have less freedom as they push for change within a company.
Intrapreneurs must work within an established system, which can slow down the implementation of new ideas. Resistance to change and risk aversion are common in established organisations, especially if the new ideas disrupt existing, profitable products or processes. Management may view intrapreneurs as rebellious, and intrapreneurs often need approval from various levels of leadership before moving forward with new projects. This approval process can delay innovation. And intrapreneurship carries its own kind of reputational risk, as changemakers may put their relationships on the line to pursue regenerative practices.
Figure 4. Intrapreneurs have a special set of skills needed to shift their businesses to regenerative strategies
(Credit: fauxels, Pexels licence)
Given the social and ecological challenges we face, we need more intrapreneurs to work for change in their businesses. Intrapreneurs can start by aiming for small, achievable changes, like adjusting financial targets to support regenerative goals. As they build support for change, it becomes easier to aim for more significant transformations. Intrapreneurs can also adapt ideas for change to fit the specific context of their business. This might mean introducing new governance models, strengthening community relationships, or improving the circularity of supply chains. Intrapreneurs’ inside knowledge of how the business works is a major advantage in making meaningful changes.
This may seem far off in your future, but you may already be part of an organisation and can be an intrapreneur that shifts it to more regenerative practices. One of the activities below gets you thinking about that.
Figure 5. People inside the business will often have amazing insights on how to make the business more regenerative
(Credit: Alan Quirván, Pexels licence)
Activity 3.4.1
Concept: Regeneration
Skills: Thinking skills (critical thinking, transfer)
Time: varies, depending on option
Type: Individual, pairs, or group
Option 1: Venn diagram of similarities and differences between entrepreneurs and intrapreneurs
Time: 25 minutes
Create a Venn diagram to capture the shared and different contexts of entrepreneurs and intrapreneurs.
Option 2: Opportunities to be an intrapreneur in your school
Time: 20-25 minutes
Explore what opportunities there are in your school (accreditation, long-term planning, student council) where student intrapreneurs can contribute to the work on purpose, networks, governance, ownership, finance
Option 3: Learning from the community
Time: 40 minutes in class + time to find a guest and organise the visit
Invite a local social entrepreneur to the class to learn about their business and the challenges of entrepreneurship for social and ecological purposes.
Ideas for longer activities and projects are listed in Subtopic 3.5 Taking action
Checking for understanding
Further exploration
Acumen Academy short courses (difficulty level varies):
Doughnut Design for Business Core Tool - a video and set of slides explaining how businesses can start adapting their purpose, networks, governance, ownership and finance to become more regenerative. There are tools for short workshops to help support change. Difficulty level: medium
Sources
Doughnut Economics Action Lab (March 2024). Doughnut Design for Business DEAL’s guide to redesigning businesses through Doughnut Economics – Core workshop Version 1.2. https://docs.google.com/presentation/d/1x8flVhi7JKRRzQClrJnlGkdjd7TpIGXeQiVMQotIH0Q/edit?usp=sharing.
Kognity (2022). IB DP Business Management HL FE2024. Stockholm: Kognity.
Sahan, E. et. al. (2022, November). What Doughnut Economics means for business: creating enterprises that are regenerative and distributive by design. Doughnut Economics Action Lab. https://doughnuteconomics.org/rails/active_storage/blobs/redirect/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcXNpIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--259000ee416367cd44b4e63d37637ded7c89f384/Doughnut%20&%20Enterprise%20Design%20-%20CET_DEAL%20paper%20V.1.0.pdf
Terminology
Link to Quizlet interactive flashcards and terminology games for Section 3.4.1 Regenerative entrepreneurship and intrapreneurship - in order of appearance
entrepreneur: a person who sets up a business
care: the act of providing what is necessary for the health, welfare, upkeep, and protection of someone or something
household: a system where people living together care for each other and do domestic work, often termed the 'core economy'
embedded: to be contained inside something else
regenerative economy: an economic system that meets human needs in a way that strengthens social and ecological systems
planetary boundaries: the limits of Earth systems to absorb the impact of human activity and continue to function
intrapreneur: a person who creates change within existing organisations
entrepreneurship: the process of starting a new business
social enterprise: a business that operates for a social or environmental purpose
Doughnut Economics model: a model for sustainable development shaped like a doughnut, combining the concept of human needs with planetary boundaries
governance: the process of overseeing the control and direction of something
finance: to provide funding for a person or organisation
social foundation: human needs that need to be met for human survival and wellbeing
ecology: the study of the relationships between living organisms and their physical environment
circular: having the form of a circle; in this course, closing the loop on linear economic systems
supply chain: the sequence of processes involved in the production and distribution of a product