Entrepreneurial Employee Activity: A Large Scale International Study

Abstract

This paper presents the results of the first large scale international comparative study of entrepreneurial employee activity (intrapreneurship). Intrapreneurship is a more wide-spread phenomenon in high income countries than in low income countries. At the organizational level, intrapreneurs have relatively high job growth expectations for their new business activities, as compared with independent young businesses. At the individual level, intrapreneurs are much more likely to have the intention to start a new independent business than other employees. However, at the country level there is a negative correlation between intrapreneurship and early-stage entrepreneurial activity. An explanation for these contrasting outcomes is the diverging effect of per capita income on intrapreneurship (positive effect) and early-stage entrepreneurial activity (negative effect). Underlying mechanisms include the role of larger firm presence, of higher education and of the opportunity costs of independent entrepreneurship.