Could “Intrapreneurship” Bridge The Wealth Gap For Black Founders?

Intrapreneurship—the practice of creating ventures within existing organizations—could help bridge the resources gap Black founders face, recent new research suggests.

Intrapreneurship: A Safer Space for Innovation

While Black and white entrepreneurs start businesses at similar rates, Black-founded ventures are only half as likely to achieve financial viability. 

New research by Olenka Kacperczyk (London Business School) and Tiantian Yang (Wharton) shows Black intrapreneurs achieve financial outcomes nearly equal to white peers, with just a 2% gap over five years.

One key factor? Researchers note that employers are already familiar with their Black employees’ talent and productivity, shielding intrapreneurs from investor discrimination.

Furthermore, working within an organization equips Black intrapreneurs with insider knowledge, helping them navigate and counteract potential barriers.

Economic Empowerment for Black Workers

The potential of intrapreneurship extends beyond personal success. Black families in the US own only 24 cents for every dollar of white household wealth. 

Enabling Black professionals to lead internal ventures could be a significant step toward narrowing the racial wealth gap.

“Intrapreneurship allows Black employees to demonstrate their creativity and leadership in a way that’s less exposed to the bias they often face in external markets,” says Kacperczyk. 

This experience can also strengthen their credentials for independent entrepreneurial ventures in the future.

A Call to Action for Organizations and Policymakers

For companies, fostering inclusive intrapreneurship is more than a moral imperative—it’s a strategic advantage according to the research. 

Diverse perspectives drive innovation, and empowering minority talent to lead new initiatives can yield economic and cultural benefits. 

Policymakers, too, must recognize the potential of intrapreneurship as a lever to drive equitable wealth distribution.

Black intrapreneurs are breaking through barriers, but organizations and society have been urged to do more to support these efforts.