*Jozzua Notes from a Business and Marketing Strategist/Tactician

Managing Entrepreneurship Within An Organisation

I distinctly remember buying cupcakes and tetra juice from my grade school teacher (wayyyy back in my elementary school days). It?s an odd sight but a reality that many Filipinos faced. To augment a very low income, many enterprising teachers decided to sell snacks and drinks. They gave students a chance to just stay within the classroom and not have to go to the cafeteria to buy food. I really didn?t mind it back then. I even thought that it made sense for us students. It was practical.

I do not know if it still happens today. It would not surprise me if it did. It seems natural to find entrepreneurs within organizations/institutions. It happens not only in schools. I know a number of employees who work full time in a corporation, but do part-time work in a Multi-Level Marketing (MLM) company.

There may be ethical issues that are raised by this. Allowing entrepreneurship within an organization can be quite a problem. Would there be conflicts of interests between the organization and the individual entrepreneur? Should this practice be allowed or not?

If an employee engages in selling within the workplace, uses corporate resources and uses company time, then any corporation could readily introduce sanctions. I think this makes sense. The individual is somewhat siphoning off income that could have gone to the company. He/she is presumed to be already compensated for his work through salaries. Why would he need to conduct other businesses? It is the right of the company/institution to make sure that this doesn?t happen.

Businesses generally frown upon the practice of entrepreneurship within an organization. Oftentimes this is clearly stated in the corporate policies. It usually goes something like ?an employee shall not engage in any business or related activity while at the employ of the company??

A Human Resources Department or other similar entity makes sure that these corporate/institutional policies are being met. The effectiveness of the policy enforcement somewhat depends on whether they find out about a violation.

Say the implementing arm (HR or other entity) finds out about the business engagements of employees, what do they do next? Send a memo? Inform upper management and then introduce sanctions like salary penalties? Forced leave? Or even termination?

Philippine Entrepreneurs, I noticed, tend to figure out ways of circumventing this. Some fly ?under the radar? and conduct small-time businesses. Others engage in entrepreneurship after office hours. They indicate that, after office hours is considered an employee?s ?personal time? and they should be allowed to do whatever they want to do. When you look at it from this perspective, it does sound correct.

The simple reality is... everyone wants some added revenue. People all work hard to have a little security in life. We all want our own houses/homes. We want cars/gadgets/etc. We want to provide good education to children.

Can entrepreneurship within an organization have positive benefits? For example, a salesman engages in other businesses (not related to his company) which give him key contacts. From the key contacts the salesman closes a deal. The deal itself earns the salesman?s company millions of dollars.

I know this can happen. A lot of Philippine Entrepreneurs go into Networking (MLM) and get chances to meet with other people. Sometimes, among those networks is a potential client for the entrepreneur?s daytime work. The sideline business actually made more money for the regular daytime business.

If I had owned my own company, I?d probably set a simple guideline: It should not compete with the company?s business. I?d prefer to be goal oriented. Perhaps it would even make sense if I just make an employee co-owner of the company.

These are just thoughts. What?s your take on this issue?