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Entrepreneurial Vent (Cao Đẳng Anh Quốc Btec Fpt)

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 ASSIGNMENT FINAL REPORT
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Unit number and title Unit 9. Entrepreneurial Ventures

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 OBSERVATION RECORD

Student Do Ba Duc

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Student Bui Quang Vinh

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Student Cao Cu Trung Anh

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Table of Contents
I. Introduction............................................................................................................................................9

II. Main Contents........................................................................................................................................9

1. Classification of Enterprises in Vietnam..........................................................................................................9

2. The Impacts of Enterprises on Vietnam and World Economy......................................................................12

2.1. Micro Enterprises.....................................................................................................................................................12
2.2. Small enterprises......................................................................................................................................................14
2.3. Medium Enterprises.................................................................................................................................................17
2.4. Large enterprises.....................................................................................................................................................19

3. Explore the importance of intrapreneurship in both public and private organizations..............................21

3.1. Some definitions related to intrapreneurship.........................................................................................................21
3.2. Benefits of Intrapreneurship....................................................................................................................................25
3.3. The reality of intrapreneurship................................................................................................................................28

III. Conclusion.........................................................................................................................................32

IV. References.........................................................................................................................................34

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 I. Introduction
Small and medium-sized enterprises (SMEs) serve as the backbone of the global economy, playing a
pivotal role in job creation, economic growth, and fostering innovation. These enterprises are vital drivers
of local and international markets, often acting as catalysts for new ideas and sustainable development.
Simultaneously, the concept of intrapreneurship—the entrepreneurial mindset nurtured within
organizations—has emerged as a critical factor for enhancing adaptability, efficiency, and competitiveness
in both public institutions and corporate entities. By empowering individuals to think innovatively and
take initiative, intrapreneurship not only drives organizational success but also contributes to broader
economic resilience. This research is conducted to address two key objectives. First, it seeks to assess the
economic impact of SMEs by analyzing statistical data and highlighting real-world examples that
showcase their contributions to various sectors. Second, it aims to explore the importance of
intrapreneurship in fostering innovation, improving operations, and enhancing competitiveness in both
public and private organizations. Drawing upon these findings, the report will provide practical
recommendations to help businesses and organizations maximize their potential and thrive in a rapidly
evolving global economic landscape. By shedding light on these critical areas, the research aspires to
contribute to more informed decision-making and strategic growth for SMEs and public institutions alike.

II. Main Contents

1. Classification of Enterprises in Vietnam
In Vietnam, enterprises are classified into four distinct categories based on their workforce size, annual
revenue, and capital investment: Micro, Small, Medium, and Large enterprises. This classification serves
as a framework to understand the scale, capabilities, and economic contributions of each type of business.
Micro enterprises often embody the entrepreneurial spirit, operating as start-ups or individual ventures
with limited resources. Small enterprises, while modest in size, exhibit greater adaptability and efficiency.
Medium enterprises mark a significant step toward structured operations, leveraging specialized teams and
resources to expand their impact. Meanwhile, large enterprises stand as pillars of the economy, driving
innovation, fostering employment, and anchoring Vietnam’s global competitiveness. The following
analysis delves into the unique characteristics and roles of these enterprise categories.

Micro enterprises

Micro enterprises are the smallest business entities, typically start-ups or individual ventures with very
limited resources. These businesses employ up to 10 workers who are enrolled in social insurance

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schemes. Their annual revenue is capped at VND 3 billion for agricultural or industrial activities and VND
10 billion for trade and service sectors. With a maximum charter capital of VND 3 billion (agriculture,
industry) or VND 10 billion (trade, services), micro enterprises generally focus on small-scale production
or localized service delivery. These entities play a pivotal role in encouraging entrepreneurship, generating
employment in rural or underdeveloped areas, and addressing local market needs. Despite their modest
contribution to GDP, they serve as a vital starting point for larger economic initiatives by providing
opportunities for individuals to transition into formal business activities (Government of Vietnam, 2018).

Small enterprises

Small enterprises operate on a slightly larger scale, with no more than 100 employees. Their annual
revenue can reach up to VND 50 billion in agricultural and industrial sectors or VND 100 billion in trade
and services. Capital investments for small enterprises range up to VND 20 billion (agriculture, industry)
or VND 50 billion (trade, services). These businesses focus on small-scale manufacturing, professional
trade services, and niche markets. With flexible management structures and the ability to adapt quickly to
market changes, small enterprises significantly contribute to the local supply chain and foster economic
growth by bridging the gap between micro and medium enterprises. They are often family-owned or
privately operated, emphasizing long-term sustainability and community-oriented goals (Government of
Vietnam, 2018).

Medium enterprises

Medium enterprises represent a critical step in the development of Vietnam’s business landscape,
requiring professional management structures and specialized teams. These businesses employ up to 200
staff members, with annual revenues reaching up to VND 300 billion and a charter capital limit of VND
100 billion. Medium enterprises typically focus on scaling their operations, expanding into regional
markets, or upgrading production technologies. They contribute significantly to the economy by enhancing
competitiveness, driving technological innovation, and creating substantial employment opportunities.
Additionally, these businesses often serve as suppliers to larger corporations, embedding themselves
deeply into global and domestic value chains. Their ability to balance growth with operational efficiency
makes them essential for economic stability and industrial diversification (Government of Vietnam, 2018).

Large enterprises

Large enterprises are the cornerstones of Vietnam’s economy, employing over 200 workers and generating
substantial revenues without any specific caps. These businesses often dominate critical sectors such as
infrastructure, energy, finance, and export-oriented manufacturing. With charter capital exceeding VND

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100 billion, they undertake significant investments in large-scale projects and maintain extensive customer
and partner networks both domestically and internationally. Large enterprises drive economic
development by fostering innovation, expanding Vietnam’s global trade footprint, and supporting smaller
businesses through subcontracting and supplier relationships. They also play a key role in addressing
structural economic challenges by investing in research and development (R&D), adopting sustainable
practices, and contributing to national tax revenues. Their resilience and scalability position them as
leaders in Vietnam’s efforts to integrate into global markets (Government of Vietnam, 2018).

Table differences between micro-, small-, medium and large business

Criteria Micro enterprises SMEs Large enterprises

Small Medium enterprises
enterprises
Number of Up to 10 No more than 100 No more than 200 Over 200
employees employees, often employees, employees, requiring employees, with
(social small or start-up compact more professional large and complex
insurance) businesses. structure, and organizational workforce
easy management. management.
management.
Annual No more than 3 Up to 50 billion Up to 300 billion No limit, often
revenue billion VND, VND, focusing on VND, typically accounting for a
(agriculture, suitable for small- small-scale businesses significant portion
industry) scale production or production, expanding of the economy
simple processing services, or trade. operations, with large-scale
businesses. production, or mid- projects and
level trade. extensive
customer
networks.
Annual No more than 10 Up to 100 billion Up to 300 billion No limit, offering
revenue (trade, billion VND, VND, involving VND, operating in core trade or
services) applicable to small- more professional mid-level trade or services, often
scale trade or trade or service services, catering to related to
service operations. activities. larger customer international
segments. markets or critical

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 sectors.
Capital Up to 3 billion Up to 20 billion Up to 100 billion Over 100 billion
VND (agriculture, VND (agriculture, VND, sufficient to VND, allowing for
industry), or 10 industry), or 50 invest in medium- extensive
billion VND (trade, billion VND scale production or investments across
services). (trade, services). business operations various fields,
with advanced teams dominating in
and equipment. competitiveness
and market
expansion.

2. The Impacts of Enterprises on Vietnam and World Economy

2.1. Micro Enterprises
Economic Contribution

Global Economic Contribution

Micro enterprises play a pivotal role in the global economy by driving job creation, fostering
entrepreneurship, and reducing income inequality. According to the International Labor Organization
(ILO, 2021), micro, small, and medium-sized enterprises (MSMEs) account for over 90% of businesses
worldwide and contribute more than 50% of global GDP. These enterprises are particularly vital in
emerging economies, where they often serve as the backbone of economic development, providing
essential goods and services while addressing unemployment challenges. In many cases, micro enterprises
act as catalysts for innovation by introducing localized solutions and traditional practices to global
markets. Additionally, their ability to adapt to market changes makes them resilient contributors during
economic downturns, as evidenced during the COVID-19 pandemic when micro enterprises were quick to
pivot operations to meet new demands.

Contribution to Vietnam’s Economy

In Vietnam, micro enterprises are a cornerstone of the national economy, contributing significantly to
employment and local economic development. As of 2021, they accounted for approximately 30% of the
national GDP and engaged nearly 50% of the total workforce (General Statistics Office of Vietnam, 2021).
With around 5.2 million micro and household businesses operating across the country, these enterprises

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play an essential role in driving rural economic activity and mitigating unemployment in underserved
regions. They also act as catalysts for localized supply chains, creating demand for raw materials,
transportation, and ancillary services. Research from the UNU-WIDER further highlights that these
businesses, especially in agricultural and craft sectors, help reduce regional income disparities and
strengthen community resilience during economic shifts (Rand & Tarp, 2020).

Example: Huong Viet Incense Shop in Thuy Xuan Incense Village in Hue

Huong Viet Incense Shop, one of the most prominent establishments in Thuy Xuan Incense Village in
Hue, exemplifies how micro-enterprises can preserve traditional crafts while contributing to the local
economy. The shop specializes in handmade incense sticks with vibrant colors, combining traditional
techniques with creative designs. Products from Huong Viet Incense Shop are not only popular in the
domestic market but are also exported internationally, showcasing Vietnamese culture to the world.

According to Phạm (2021), the total annual revenue of Thuy Xuan Incense Village, including Huong Viet
Incense Shop, exceeds VND 150 billion, underscoring its economic significance. Additionally, the village
is a renowned tourist destination, attracting thousands of visitors yearly. Tourists not only purchase
products but also participate in hands-on incense-making experiences, contributing to the income of local
households. Beyond its economic contributions, the colorful and traditional image of villages like Thuy
Xuan symbolizes Vietnam’s cultural heritage, creating a positive impression on international visitors and
indirectly supporting the growth of tourism and related industries.

Huong Viet Incense Shop, along with other establishments in Thuy Xuan, provides vital job opportunities
for the local population, including artisans, laborers, and vendors. For individuals without formal
education or specialized skills, these businesses offer accessible sources of income and skill development.
Additionally, the growing popularity of the village as a tourist destination has created indirect employment
opportunities in areas like hospitality, transportation, and local services. According to a report by Hue
Tourism Department (2022), craft villages like Thuy Xuan have contributed to reducing unemployment in
rural areas, with over 70% of households in the village actively participating in the incense-making
industry.

Recommendations for Enhancing Thuy Xuan Incense Village's Economic and Cultural Impact

Financial Access

Implementing microfinance programs tailored for establishments like Huong Viet Incense Shop can enable
them to scale their operations. Initiatives by the Vietnam Bank for Social Policies (VBSP, 2020) have

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shown that small-scale loans can significantly improve production efficiency and product quality. These
programs would allow businesses in Thuy Xuan to invest in higher-quality materials, advanced equipment,
and modern techniques, thereby increasing both productivity and revenue.

Digital Transformation

Providing training in digital marketing and e-commerce is essential for expanding market reach.
According to the Ministry of Industry and Trade (2023), Vietnam’s e-commerce sector grows at an annual
rate of 20%, with platforms like Shopee, Lazada, and Facebook Marketplace emerging as vital sales
channels. Thuy Xuan can learn from the success of Phu Vinh Bamboo Village, where adopting e-
commerce led to a 30% increase in sales within two years (Tran, 2021).

Infrastructure Support

Investing in transport and logistics infrastructure would significantly improve the efficiency of
distribution. Currently, poor road conditions increase transportation costs and hinder access to larger
markets. Vietnam’s National Target Program on New Rural Development (2021-2025) demonstrates the
feasibility of upgrading infrastructure in craft villages. Better roads and logistics services in Thuy Xuan
would reduce production costs, attract external investors, and enhance supply chain efficiency.

Formalization Incentives

Encouraging establishments like Huong Viet Incense Shop to formalize their operations can unlock access
to government support programs, export markets, and legal protections. The single-window business
registration system implemented in Hue is an excellent example of simplifying bureaucratic processes.
Additionally, offering tax incentives or subsidies for newly formalized businesses would motivate
participation. For instance, after formalization, a craft enterprise in Ninh Binh secured international
contracts, resulting in a 40% increase in revenue (Nguyen, 2020).

2.2. Small enterprises

Global Economic Contribution

Small enterprises are a vital force in the global economy, playing a key role in generating employment,
fostering innovation, and driving economic growth. According to the International Finance Corporation
(IFC, 2021), small collectively account for approximately 90% of businesses and more than 50% of global
employment. These enterprises are often at the forefront of technological adoption and product innovation,
enabling them to adapt to changing market dynamics and consumer needs. Moreover, small enterprises
contribute significantly to global trade, as many of them participate in international value chains by

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supplying larger corporations. Their flexibility and entrepreneurial approach also make them instrumental
in addressing emerging challenges, such as sustainability and digital transformation.

Contribution to Vietnam’s Economy

In Vietnam, small enterprises form the backbone of the private sector, significantly contributing to the
economy's growth and stability. As of 2021, small enterprises represented approximately 30% of
registered businesses and contributed over 40% of the country’s GDP (General Statistics Office of
Vietnam, 2021). They employ millions of workers, with a particular focus on urban and peri-urban regions
where they offer formal employment opportunities and skill development for the local workforce. These
businesses are essential in fostering industrialization and modernization by bridging the gap between
micro and medium enterprises, often acting as suppliers or subcontractors to larger firms. Additionally,
small enterprises in Vietnam actively engage in export activities, particularly in sectors such as agriculture,
textiles, and manufacturing, thereby enhancing the country’s trade balance and global integration (Nguyen,
2020).

Example: Minh Long Ceramic Company

Minh Long Ceramic Company, headquartered in Binh Duong Province, serves as a notable example of the
contributions of small enterprises in Vietnam. Initially established as a small family-owned workshop,
Minh Long has grown into a recognized brand for its high-quality ceramic products. The company
employs approximately 100 workers and combines traditional craftsmanship with modern technology to
produce a wide range of products, including tableware, decorative items, and custom designs for
international clients.

The company generates annual revenue exceeding VND 150 billion, with around 60% of its products
exported to key markets such as Europe, Japan, and the United States (Tran, 2022). Minh Long’s focus on
sustainability and quality has enabled it to carve out a niche in the competitive ceramics industry while
promoting Vietnamese culture on a global scale. By sourcing raw materials locally and investing in
energy-efficient production processes, the company also supports Vietnam's environmental and economic
goals.

Impact on Employment

Small enterprises like Minh Long Ceramic Company provide stable employment opportunities and skill
training for the local workforce. The company’s workers receive training in both traditional and modern
ceramic techniques, ensuring the preservation of cultural heritage while maintaining international quality

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standards. This approach not only enhances the productivity of its employees but also contributes to the
region’s socio-economic development.

Recommendations for Enhancing Minh Long Ceramic Company’s Development

Access to Export Support

Simplifying export procedures and reducing trade barriers is a practical and effective way to expand Minh
Long's international market reach. Evidence from the Ministry of Industry and Trade (2023) highlights
that Vietnam’s free trade agreements (FTAs), such as the EU-Vietnam FTA (EVFTA). Minh Long,
already exporting 60% of its products to markets like Europe and Japan, could leverage these agreements
to further penetrate these regions. By participating in government-led trade fairs and exhibitions, such as
the Vietnam Export Promotion Forum, the company can showcase its products to global buyers and secure
new contracts, as seen in similar success cases from other Vietnamese (Quyen, 2021).

Technology Adoption

Investing in modern production technologies is crucial for enhancing efficiency and product quality. Minh
Long’s existing integration of traditional craftsmanship with advanced techniques demonstrates its
readiness for further technological upgrades. Government programs like the National Innovation Center
(NIC) offer low-interest loans to adopt energy-efficient technologies. For instance, another ceramic
enterprise in Binh Duong reduced production costs by 20% after upgrading its kilns to eco-friendly models
under a similar program (Tran, 2022). These investments would enable Minh Long to produce more
competitively priced, high-quality products while meeting international environmental standards.

Skills Development

Tailored training programs for Minh Long’s employees in advanced ceramic techniques, digital marketing,
and international business practices would directly enhance their productivity and capacity. For example,
the Vietnam Skills for Industry Project has successfully trained workers in export-oriented industries,
resulting in a 15% increase in productivity across participating companies (World Bank, 2022). By
collaborating with institutions like the Vietnam National University of Fine Arts, Minh Long could ensure
its artisans acquire cutting-edge design skills while preserving traditional methods, giving the company a
competitive edge in both domestic and global markets.

Networking Opportunities

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Establishing networking platforms for Small enterprises to connect with larger corporations and foreign
buyers has proven to facilitate market expansion and knowledge sharing. Minh Long could benefit from
joining industry associations, such as the Vietnam Ceramic Association, to access resources, gain market
insights, and forge partnerships. Government-supported initiatives like the Business Matching Program
under the Ministry of Planning and Investment have enabled Small enterprises to connect with
international distributors, increasing their export contracts by an average of 25% (Quyen, 2021). Minh
Long’s participation in such programs would help it diversify its customer base and expand into new
markets.

⟶ The proposed strategies align with Minh Long’s existing strengths, such as its ability to produce
high-quality ceramics and its established presence in export markets. By leveraging government-
supported programs and resources, the company can minimize financial risks while achieving
sustainable growth. The success of similar enterprises in adopting these measures provides
concrete evidence that these recommendations are both practical and beneficial for Minh Long’s
continued development.

2.3. Medium Enterprises

Global Economic Contribution

Medium enterprises bridge the gap between small businesses and large corporations, playing a crucial role
in global supply chains, innovation, and economic growth. The Organisation for Economic Co-operation
and Development (OECD, 2022) highlights that medium enterprises contribute approximately 30% of
global GDP and employ around 25% of the global workforce. They often specialize in scalable operations,
enabling them to participate in international trade and adapt to market demands. By driving technological
advancements and fostering competition, medium enterprises enhance economic resilience and innovation.

Contribution to Vietnam’s Economy

In Vietnam, medium enterprises are pivotal in the country’s industrialization and modernization efforts.
They represent around 15% of registered businesses and contribute approximately 20% to the national
GDP (General Statistics Office of Vietnam, 2021). These enterprises thrive in sectors like manufacturing,
logistics, and technology, often serving as suppliers for larger corporations. By integrating into global
value chains, medium enterprises support export activities, enhance productivity, and foster innovation.
Their ability to employ skilled teams and adopt modern management practices positions them as key
players in Vietnam’s economic development.

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Example: Trung Thanh Food Company

Trung Thanh Food Company, headquartered in Ho Chi Minh City, exemplifies the impact of medium
enterprises in Vietnam. Specializing in the production of sauces, pickles, and seasonings, Trung Thanh
employs around 200 workers and generates annual revenue exceeding VND 500 billion (Nguyen, 2022).
Its products cater to both domestic and international markets, with exports to countries such as Japan,
South Korea, and the United States.

The company’s success is rooted in its commitment to quality and innovation. Trung Thanh has invested
in modern production lines and complies with international food safety standards such as HACCP and ISO
22000. By sourcing raw materials from local farmers, the company supports Vietnam’s agricultural sector
while fostering rural development. Additionally, Trung Thanh’s participation in trade exhibitions and
international food fairs has enhanced its brand visibility and market reach.

Medium enterprises like Trung Thanh Food Company provide stable employment opportunities for skilled
and semi-skilled workers. The company not only offers competitive salaries but also invests in regular
training programs to improve employee skills. By partnering with local farming communities for raw
material sourcing, Trung Thanh indirectly supports thousands of rural households, thereby contributing to
regional socio-economic stability.

Recommendations

To further develop medium enterprises like Trung Thanh Food Company, the following strategies are
proposed:

R&D Incentives

Providing tax breaks or grants for R&D activities would enable Trung Thanh to innovate new product
lines, such as organic or health-oriented sauces, catering to changing consumer preferences. Studies by the
Vietnam Chamber of Commerce and Industry (VCCI) demonstrate that enterprises with dedicated R&D
programs see a 15–20% increase in market share (VCCI, 2023). By expanding its product portfolio, Trung
Thanh can maintain a competitive edge both domestically and internationally.

Export Assistance

The government could offer targeted support for medium enterprises aiming to expand exports. Programs
like export credit guarantees or trade promotion subsidies can reduce risks and costs associated with
entering new markets. Trung Thanh could leverage these resources to expand its footprint in Europe or

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emerging markets in Southeast Asia, tapping into growing demand for authentic Vietnamese food
products.

Digital Transformation

Investing in digital marketing and e-commerce platforms would help Trung Thanh strengthen its presence
in both domestic and global markets. For example, similar medium-sized food companies in Vietnam
reported a 30% revenue boost after adopting online retail strategies (Nguyen, 2022). Digital platforms
would also streamline operations, from order processing to customer relationship management.

Workforce Development

Collaborating with vocational schools and training centers to enhance employee skills would ensure Trung
Thanh maintains high productivity levels. Tailored programs focusing on food safety, advanced
production techniques, and international business practices would align with the company’s growth
objectives. Successful training initiatives in similar enterprises have led to a 25% increase in operational
efficiency (Tran, 2021).

⟶ These recommendations build on Trung Thanh Food Company’s existing strengths, such as its
quality-driven production processes, strong market presence, and commitment to innovation.
Leveraging government-supported programs for R&D and exports ensures financial viability while
reducing risks. Digital transformation and workforce training are practical strategies, given Trung
Thanh’s scale and operational model. The successful implementation of similar initiatives in
Vietnam underscores their applicability and potential to elevate Trung Thanh’s competitive
positioning.

2.4. Large enterprises

Global Economic Contribution

Large enterprises serve as the backbone of the global economy, accounting for a significant share of global
GDP and employment. According to the World Economic Forum (2023), large enterprises contribute
approximately 60% of global GDP and employ around 30% of the global workforce. Their ability to
mobilize substantial resources, adopt advanced technologies, and operate across multiple markets makes
them key drivers of innovation, international trade, and economic stability. Additionally, these
corporations play a vital role in addressing global challenges such as climate change and sustainable
development through investments in green technologies and corporate social responsibility initiatives.

Contribution to Vietnam’s Economy

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In Vietnam, large enterprises are pivotal in shaping the country’s industrial landscape and global
competitiveness. They account for around 25% of the national GDP and contribute significantly to
exports, infrastructure development, and job creation (General Statistics Office of Vietnam, 2021).
Operating across industries such as energy, finance, technology, and manufacturing, large enterprises
serve as anchors for economic growth by attracting foreign investment, fostering supply chain integration,
and driving technological advancements. Moreover, they often collaborate with small and medium
enterprises (SMEs), creating opportunities for knowledge transfer and shared economic benefits (Nguyen,
2022).

Example: Vingroup

Vingroup, Vietnam’s largest private enterprise, exemplifies the transformative impact of large enterprises.
Operating across diverse sectors, including real estate, healthcare, education, technology, and automotive
manufacturing, Vingroup eSMEmploys over 50,000 people and generates annual revenues exceeding
VND 125 trillion (Tran, 2023). The company’s projects, such as VinFast (its electric vehicle division) and
VinUniversity, have elevated Vietnam’s profile in global markets while contributing to domestic
industrialization and technological innovation.

Vingroup’s investment in VinFast has positioned Vietnam as a contender in the electric vehicle (EV)
market. By building modern production facilities and leveraging global partnerships, the company has not
only advanced the country’s automotive industry but also contributed to the global shift toward sustainable
transportation. Furthermore, its real estate developments and healthcare projects have improved urban
infrastructure and public well-being, showcasing the multi-dimensional impact of large enterprises on
Vietnam’s socio-economic landscape.

As one of Vietnam’s largest employers, Vingroup provides high-quality jobs and career development
opportunities across its various subsidiaries. The company invests heavily in workforce training, ensuring
its employees are equipped with the skills needed to excel in a competitive market. Moreover, its supply
chain activities indirectly support thousands of jobs in related industries, from construction to retail.

Recommendations

Sustainability Investments

To maintain its competitive edge, Vingroup should expand investments in sustainable technologies and
practices. For instance, further enhancing VinFast’s EV production capabilities through renewable energy-
powered manufacturing processes would align with global trends and attract environmentally conscious

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consumers. Studies by the International Renewable Energy Agency show that companies adopting green
manufacturing see a 20% increase in market share within five years.

Global Market Expansion

While Vingroup has made strides in global markets, further diversifying its international presence would
reduce dependency on any single region. Establishing production and R&D facilities in key markets such
as Europe and North America could enable VinFast to meet regional consumer preferences more
effectively. This strategy has been successfully employed by global automotive giants like Tesla, which
saw a 30% rise in sales after setting up regional manufacturing hubs (Nguyen, 2022).

Digital Transformation

Leveraging advanced digital tools, such as artificial intelligence (AI) and big data analytics, would
enhance Vingroup’s operational efficiency and customer engagement. For example, implementing AI-
driven systems in its real estate and healthcare divisions could improve service delivery and decision-
making. Research from McKinsey & Company (2023) highlights that enterprises utilizing AI in their
operations achieve a 25% improvement in operational efficiency.

Collaboration with SMEs

Building stronger partnerships with SMEs could enhance Vingroup’s supply chain resilience while
fostering innovation. For instance, creating dedicated SME incubators or accelerators within its ecosystem
would allow Vingroup to source innovative solutions from smaller companies. Similar initiatives in other
large enterprises, such as Samsung’s global supplier program, have resulted in cost reductions and
increased supplier efficiency by 15% (Tran, 2022).

⟶ The proposed strategies align with Vingroup’s existing strengths and growth trajectory.
Expanding sustainable practices and global market presence leverages the company’s expertise in
innovation and scalability. Digital transformation and SME collaboration, meanwhile, enhance
operational efficiency and ecosystem development, which are crucial for maintaining its leadership
position. Proven successes of similar strategies in global corporations further validate their
feasibility and potential for impact.

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3. Explore the importance of intrapreneurship in both public and private
organizations
3.1. Some definitions related to intrapreneurship
3.1.1. The Definition, Role, and Importance
Intrapreneurship refers to a system where employees are encouraged to act like entrepreneurs within an
organization. These individuals, known as intrapreneurs, are proactive, creative, and action-oriented,
working to develop new ideas, products, services, or improve internal processes to add value to the
organization. A significant distinction between intrapreneurs and independent entrepreneurs is that
intrapreneurs do not bear personal financial risks in case of failure; the organization assumes this
responsibility. This environment allows intrapreneurs to experiment and innovate freely without fear of
personal loss (Side Ways, 2024).

The role of intrapreneurship in organizations is vital as it drives innovation and enhances operational
efficiency. By involving employees in key initiatives, intrapreneurship fosters a sense of purpose and
ownership, which leads to improved job satisfaction and higher productivity. Employees who feel engaged
in meaningful work are more likely to remain motivated and committed to organizational goals.
Additionally, intrapreneurship helps organizations attract and retain top talent. A workplace that
encourages creativity and innovation appeals to job seekers, especially those looking for challenging and
dynamic opportunities. (Workstatus, 2024)

The importance of intrapreneurship is evident in the strategic benefits it brings to organizations. First, it
promotes a culture of innovation throughout the company, enabling the discovery and swift capitalization
of new market opportunities. This adaptability gives businesses a competitive edge, as they can respond
effectively to shifting market demands. Furthermore, intrapreneurship allows organizations to maximize
internal resources by leveraging the unique talents, ideas, and experiences of their employees. Those
familiar with the company’s operations and industry can contribute practical and effective solutions that
align with organizational needs. (Workstatus, 2024)

Intrapreneurship also strengthens an organization’s ability to adapt to changes in the business

environment. In an ever-evolving market, intrapreneurs act as trailblazers who drive transformation and
lead the organization to overcome challenges. Moreover, continuous innovation facilitated by
intrapreneurship supports revenue growth, operational efficiency, and long-term sustainability. In
summary, intrapreneurship is a critical factor in fostering innovation, boosting competitiveness, and
ensuring the lasting success of an organization.

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3.1.2. Types of intrapreneurship
Public intrapreneurship refers to the practice of fostering entrepreneurial thinking and innovation within
government agencies or public organizations. It involves empowering public sector employees to develop
and implement creative ideas to improve public services, solve societal problems, and enhance the
efficiency of governmental operations. Public intrapreneurs work within the constraints of policies,
regulations, and public accountability while focusing on creating social value and serving the needs of
citizens. (Harvard Business Review, 2024)

Corporate intrapreneurship describes the process of encouraging employees within private organizations to
act as entrepreneurs. Intrapreneurs in corporations innovate by identifying new market opportunities,
improving internal processes, or developing new products and services. Unlike independent entrepreneurs,
corporate intrapreneurs operate with the resources and support of the organization, with the goal of driving
business growth, profitability, and competitive advantage. Their work aligns closely with the strategic
objectives of the organization. (Harvard Business Review, 2024)

There are two types of intrapreneurship in business, namely Public Intrapreneurship and Corporate
Entrepreneurship, summarized in the following table:

Public Intrapreneurship Corporate Intrapreneurship

Primary Goal Improve public services, solve Drive business growth, develop
societal challenges, and create new products/services, and
social value. generate financial returns.

Stakeholders Citizens, government agencies, Shareholders, employees,

and community organizations. customers, and business partners.

Focus Area Societal impact, policy Profitability, competitive

implementation, and public advantage, and market expansion.
welfare.

Decision-Making Slower, influenced by Faster, influenced by business

bureaucracy and public agility and competitive pressures.
accountability.

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 Resources Limited by budgets, political Often well-funded with access to
constraints, and public funding. advanced tools, teams, and R&D
resources.

Success Metrics Social outcomes, improved Financial outcomes like revenue,

public services, and citizen ROI, and market share growth.
satisfaction.

Challenges Bureaucratic hurdles, lack of High pressure for results, market

autonomy, and slow competition, and resource
implementation processes. allocation issues.

Impact Long-term improvements in Short-to-medium-term gains in

societal well-being and public business value and competitive
trust. standing.

Cultural Conservative and risk-averse Innovation-friendly and risk-

Environment due to public scrutiny. tolerant, driven by business goals.

From the information table above, the factors to compare the two types are specifically as follows:

Goals and Objectives

The primary goal of Public Intrapreneurship is to solve societal problems, improve public services, and
enhance community welfare. Intrapreneurs in this space often work on projects aimed at addressing broad
societal challenges, such as healthcare access, education quality, or environmental conservation. Success is
measured by the positive societal impact and public satisfaction, not by financial profit. For example, a
government employee innovating a digital platform for citizen services focuses on improving accessibility
rather than generating revenue. In contrast, Corporate Intrapreneurship is driven by business-centric goals
like increasing revenue, creating innovative products or services, and gaining a competitive edge in the
market. Corporate intrapreneurs work within businesses to identify new market opportunities, improve
operational efficiencies, or develop products that align with consumer needs. Their success is tied to
financial outcomes like profitability, ROI, and market share. (EBR - Posted, 2022)

Stakeholders and Focus

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Public intrapreneurs cater to diverse stakeholders, including citizens, government agencies, and non-profit
organizations. Their work must align with public accountability, policies, and broader societal interests.
For instance, a public intrapreneur may introduce a policy change that benefits underprivileged
communities, ensuring inclusivity and fairness. Corporate intrapreneurs, on the other hand, work within a
business framework to benefit shareholders, customers, and internal stakeholders. Their focus is narrower,
targeting specific customer segments or markets with the aim of maximizing business outcomes (Taylor,
2018).

Resources and Challenges

Public Intrapreneurship often faces resource limitations due to fixed government budgets, political
constraints, and a lack of financial incentives. Bureaucratic hurdles can slow down decision-making and
implementation processes. Despite these limitations, public intrapreneurs rely on creativity and
collaboration to overcome these challenges and achieve social impact. In comparison, Corporate
Intrapreneurship is generally better resourced, with access to advanced tools, skilled teams, and dedicated
R&D budgets. However, corporate intrapreneurs face pressures like tight deadlines, competitive market
conditions, and the expectation of delivering measurable financial results. The availability of resources is
counterbalanced by the need for swift execution and accountability to shareholders (EBR - Posted, 2022).

Cultural and Operational Environment

Public intrapreneurship operates in a conservative, risk-averse environment due to public scrutiny and the
need for transparency. Experimentation is often constrained by the need to adhere to policies and avoid
political repercussions. In this context, innovation tends to be incremental rather than radical. On the other
hand, corporate intrapreneurship thrives in a more flexible and risk-tolerant culture. Private organizations
encourage employees to experiment with bold ideas and embrace failure as part of the innovation process.
This culture enables faster decision-making and the potential for groundbreaking innovations that can
transform industries (Raja, 2022).

Impact

The outcomes of public intrapreneurship are long-term and focused on societal well-being. Successful
projects can lead to systemic changes, improved public trust, and enhanced quality of life. For instance,
introducing renewable energy programs in underserved areas can have far-reaching social and
environmental benefits. Corporate intrapreneurship, however, tends to deliver short- to medium-term
impacts, such as increased market share, customer satisfaction, and profitability. Innovations here aim to
outpace competitors and secure a strong position in the market (Kearney, et al., 2009).

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3.2. Benefits of Intrapreneurship
From the two business examples mentioned above, it can be seen that intrapreneurship brings some
benefits to businesses as follows:

Improved morale and productivity

Intrapreneurship allows employees to be creative and take responsibility for projects, making them feel
valued and recognized. This freedom not only increases motivation but also improves morale, thereby
increasing productivity (Hustleinspireshustle, 2024). Specifically, Minh Long Company has encouraged
designers to create limited collections inspired by Vietnamese culture and history. This self-creation not
only increases productivity but also helps employees feel recognized, thereby increasing productivity.

Attracting top talent

Companies that apply intrapreneurship often attract excellent talent, who seek a highly creative work
environment and opportunities to express their ideas. Talented employees want to join organizations that
can develop their personal abilities and contribute new ideas (Assembleyou, 2024). Minh Long can attract
creative young artisans and designers by building an internal “Innovation Center” within the company.
Here, employees will be provided with tools and platforms to experiment with new materials or
techniques. An internal competition program where employees can present their ideas will make Minh
Long an attractive workplace for those who aspire to be creative.

Improved employee retention

Intrapreneurship creates opportunities for employees to participate in creative and challenging projects,
helping them feel more attached to the company. When employees are empowered and supported to
develop their ideas, they tend to stay longer, reducing turnover (Hustleinspireshustle, 2024). By organizing
internal competitions for product innovation and recognizing top ideas with rewards or production
opportunities, Minh Long can enhance employees’ attachment to the company. For example, artisans who
develop new glazes or ceramic techniques could be highlighted in company publications or public
exhibitions, making them feel appreciated and motivated to stay.

Increase revenue and expansion

Encouraging innovation through intrapreneurship helps companies develop new products, services or
solutions. These innovations not only increase customer satisfaction but also boost revenue and the
sustainable development of the organization (Reallygoodinnovation, 2023). Minh Long can leverage
intrapreneurship to develop unique, modern product lines that appeal to international markets. For

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example, encouraging teams to create ceramic items tailored for global dining trends, such as eco-friendly
tableware, could open up new revenue streams. These innovations not only boost profits but also ensure
the company’s sustainable growth in competitive markets.

Encourage widespread innovation

Intrapreneurship creates an environment where employees at all levels can contribute new ideas. This not
only helps promote internal innovation but also helps the company stay competitive and adapt quickly to
the market (Assembleyou, 2024). Minh Long could foster an innovation culture by encouraging employees
from all departments—not just designers or artisans—to contribute ideas. For instance, a warehouse
employee might suggest a new packaging method to reduce breakage during export, showcasing how
everyone’s ideas can impact the company positively.

Increase agility

Employees who operate under the spirit of intrapreneurship are quick to identify opportunities and
challenges and find ways to solve them without direct direction from superiors. This helps the company
become agile and respond quickly to changes in the business environment (Reallygoodinnovation, 2023).
Minh Long’s employees can be trained to quickly identify market shifts, such as the growing demand for
sustainable products. With an intrapreneurial mindset, the company could adapt by developing a product
line that uses recycled materials, reflecting both agility and environmental responsibility. This would
position Minh Long as a forward-thinking leader in the industry.

Make the most of internal knowledge and talent

Intrapreneurship helps organizations effectively exploit internal resources, including the specialized
knowledge and creative talents of employees. Instead of looking for external solutions, companies can take
advantage of creative ideas and solutions that are already available within the organization, thereby
reducing costs and improving work efficiency. Minh Long has a rich heritage in ceramics, and tapping into
this collective knowledge could yield innovations that honor tradition while introducing modernity. For
example, senior artisans can mentor younger employees to combine traditional techniques with
contemporary designs, maximizing talent across generations.

Intrapreneurship not only improves employee productivity and morale, but also plays an important
role in enhancing a business's competitive advantage because:

Creating innovative products and services: When employees have the freedom to be creative and develop
new ideas, they can create unique products and services that differentiate themselves from their

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competitors in the market. This innovation helps the company not only attract customers but also build a
strong brand, creating a sustainable competitive advantage (Allbusiness, 2024).

Quickly adapt to market changes: Intrapreneurship encourages employees to quickly identify market
trends and changes in customer needs. Thanks to their initiative and creativity, businesses can quickly
adapt and adjust their strategies, helping them stay flexible and stay at the forefront of the industry
(Allbusiness, 2024).

Encourage a culture of innovation and creativity: An organization with an intrapreneurship culture creates
an environment where all employees are involved in creating and finding new opportunities. This not only
helps the company maintain innovation but also helps create creative solutions that outperform
competitors, strengthening the company's position in the market. (Author, 2023)

Increase customer retention: When a company's products and services are constantly innovated and
improved through intrapreneurship initiatives, customers will feel better served and motivated to use the
company's products/services again. This innovation increases customer loyalty and helps the company
maintain a long-term relationship with them (Author, 2023).

Ability to anticipate and solve problems before competitors: Thanks to the spirit of intrapreneurship,
employees can find potential problems or untapped opportunities that competitors have not yet recognized.
Detecting and solving these problems early allows businesses to come up with solutions before their
competitors do, providing a significant competitive advantage (Allbusiness, 2024).

From this, it can be concluded that:

Intrapreneurship helps businesses create an environment that encourages continuous creativity and
innovation. As a result, businesses can develop new products, services and strategies more quickly,
meeting market needs effectively and creatively. This not only helps businesses maintain innovation but
also improves their competitiveness in an increasingly fierce business environment.

Applying intrapreneurship at Minh Long can significantly enhance the company’s competitive advantage
by fostering continuous innovation and product development. Encouraging employees to participate in
creative projects allows Minh Long to quickly adapt to changing market demands, leading to the creation
of unique ceramic products that attract new customers while retaining existing ones. Furthermore, building
a culture of innovation helps optimize production processes, reduce costs, and increase productivity.
Intrapreneurship also aids in attracting and retaining talented, creative employees, thereby lowering
turnover rates and maintaining a high-quality workforce. Additionally, the company can leverage internal
knowledge and expertise to develop new production techniques or improve existing products, ensuring a

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sustainable competitive edge. These factors contribute to Minh Long’s ability to enhance efficiency,
respond swiftly to market changes, and reinforce its leadership position in the ceramics industry.

3.3. The reality of intrapreneurship

3.3.1. The need for intrapreneurship in today's organizations
From the benefits and competitive advantages that intrapreneurship brings to organizations, it can be seen
that the need to implement intrapreneurship in organizations is growing strongly because of the clear
benefits it brings, especially in the context of the modern, volatile and competitive business environment.
In the globalized world, innovation becomes a vital factor to help companies maintain and expand market
share. Intrapreneurship creates a working environment where employees can freely create and experiment
with new ideas without being bound by rigid processes. This helps companies not only maintain
continuous innovation but also develop new products and services, thereby increasing competitiveness and
differentiation in the market. In addition, intrapreneurship also helps organizations grow sustainably by
making the most of available resources and knowledge internally. When employees are empowered and
accountable, they can come up with innovative solutions that help organizations adapt quickly to change,
creating breakthrough values without having to look for external resources.

The growing demand for implementing intrapreneurship in organizations is evident through various
compelling data points. First, companies embracing intrapreneurship often experience remarkable growth
in revenue and innovative outputs. For example, Google's "20% time" policy allowed employees to work
on personal projects, leading to groundbreaking products like Gmail, which significantly contributed to
Google’s market success. (Knowledge at Wharton, 2021). Additionally, research from Dell and Gartner
highlights that 78% of business leaders recognize internal innovation as a key factor in competing with
tech startups. Many CEOs predict that digital initiatives will account for up to 80% of revenue soon,
further driving businesses to adopt intrapreneurship strategies to maintain their competitive edge
(Knowledge at Wharton, 2021). Intrapreneurship also plays a vital role in talent acquisition and retention.
Organizations offering employees opportunities to engage in creative and challenging projects report
reduced turnover rates and stronger employee engagement. This is critical in a global labor market where
competition for top talent is intensifying (Team, 2022).

In addition to the benefits of innovation and growth, intrapreneurship also effectively addresses the
problem of attracting and retaining talent, one of the biggest challenges in organizations today. Talented
employees often seek a work environment that not only provides opportunities for career development but
also allows them to express their creativity and contribute to the development of the company.
Intrapreneurship creates opportunities for employees to participate in important, challenging and

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innovative projects, thereby helping them feel more connected to the company and reducing turnover.
Furthermore, when employees can experiment and develop new ideas, they feel recognized and
appreciated, which promotes satisfaction and long-term engagement. With the development of technology,
organizations can also take advantage of modern tools and platforms to support and promote the creative
process, helping to reduce costs and accelerate the innovation process. Therefore, implementing
intrapreneurship not only helps the company maintain flexibility but is also an important factor for
sustainable development and competitiveness in today's changing environment.

3.3.2. Some problems that intrapreneurship is facing

Public Intrapreneurship:

Bureaucracy and Policy Barriers: Public organizations are heavily regulated, with strict legal frameworks
and administrative processes that limit flexibility. Approval processes often involve multiple layers of
leadership or government oversight, resulting in delays that discourage employees from proposing
innovative ideas. This rigidity makes it difficult to adapt quickly to market changes or capitalize on
emerging opportunities.

Budget and Resource Limitations: Public intrapreneurs often face constrained budgets that are pre-
allocated for existing programs, leaving little room for experimentation. These limitations reduce the
ability to fund promising projects, even when they align with public goals. As a result, many innovative
ideas are abandoned due to a lack of financial or operational support.

Lack of a Pro-Innovation Culture: Public sector environments often prioritize maintaining stability over
fostering creativity. Employees may fear taking risks because of potential repercussions for failure.
Moreover, the absence of reward mechanisms for innovation discourages intrapreneurs from pursuing
ambitious ideas, stifling their potential contributions.

Resistance to Change: Long-standing practices and entrenched leadership in public organizations often
resist new ideas, viewing them as threats to the status quo. Additionally, external pressures, such as public
scrutiny or fear of political backlash, make leaders hesitant to experiment with unconventional solutions.

Difficulty Measuring Success: Public organizations frequently lack clear frameworks to evaluate the social
impact of innovative initiatives. Unlike profit-driven private ventures, public intrapreneurship often
focuses on social outcomes, which are harder to quantify. This lack of measurable success criteria reduces
confidence in new ideas and makes it difficult to justify investment in experimental projects.

Corporate Intrapreneurship:

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Cultural Barriers: Many large corporations are process-driven, emphasizing operational stability over
innovation. Employees often perceive the workplace as resistant to experimentation, especially when
failures are penalized. This cultural rigidity inhibits intrapreneurs from freely proposing or testing new
ideas. In many organizations, especially traditional ones, it’s not easy to change the work culture to
encourage creativity and experimentation. Leaders may be hesitant about risks and not trust the creativity
of employees, making it difficult for them to support new initiatives. This lack of support can hinder the
growth and development of intrapreneurship. The differences in mindset between business leaders and
intrapreneurs, along with cultural contrasts, often create barriers to successful intrapreneurship. Leaders
focus on stability, risk reduction, and short-term profits, while intrapreneurs prioritize long-term
innovation, experimentation, and risk-taking. This can clash when leaders perceive innovation as
disruptive. Additionally, traditional organizational cultures are often hierarchical and risk-averse, making
it difficult to foster the autonomy and creative freedom necessary for intrapreneurship. For
intrapreneurship to thrive, organizations need to shift towards a more flexible, supportive culture that
embraces innovation and change.

Lack of Leadership Support: Senior leaders in corporations may not fully back intrapreneurial efforts due
to competing priorities or an inability to recognize the value of internal innovation. Without executive
sponsorship, projects lack resources and visibility, leaving many ideas to stagnate.

Short-Term Financial Pressures: Corporations often prioritize immediate financial returns to satisfy
shareholders, which can overshadow long-term innovation efforts. Projects requiring significant time and
investment to mature may be deprioritized, causing the company to miss opportunities for disruptive
growth.

Complex Internal Processes: Large corporations often have hierarchical structures and cumbersome
approval processes that delay the implementation of new ideas. This complexity undermines the speed and
agility needed for intrapreneurship to succeed, particularly when compared to smaller, more flexible
competitors.

Low Employee Motivation: Without clear incentives, such as profit-sharing or recognition, employees are
less inclined to invest time and energy into intrapreneurial initiatives. A lack of tangible rewards
diminishes enthusiasm, leading to fewer contributions of creative ideas and innovations.

3.3.3. Recommendations for improvement

The above shortcomings can make the operation and management of the organization difficult, especially
in the early stages of development. Specifically, for the business model of the group of authors in

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assignment 1, there will be many things that need to be solved and overcome to bring benefits and
optimize the advantages of this type of intrapreneurship. Recommendations to help the organization
improve and develop such as:

Create a Culture of Innovation and Risk Tolerance

To successfully implement intrapreneurship, organizations must create a working environment that

encourages creativity and risk-taking. Leaders should demonstrate support for innovative initiatives and
encourage employees to experiment with new ideas without fear of failure. This can be achieved by
providing opportunities for experimentation and allowing employees to test creative solutions without
worrying about negative consequences. Organizations should develop a "learn from failure" culture,
helping employees understand that failure is a crucial part of the learning and development process. When
employees feel confident to experiment without fear of failure, they become more proactive in generating
creative ideas, which helps the organization maintain continuous innovation and enhance its
competitiveness. To sustain this culture, leaders should regularly organize brainstorming sessions and
share both successes and failures, helping employees see failure in a positive light and fostering ongoing
creativity.

Provide Adequate Resources and Continuous Support

One of the key factors for intrapreneurship success is ensuring that employees have the necessary
resources and support. Organizations need to ensure that intrapreneurs have access to time, budget,
technology, and expert support from within the company to develop their creative ideas. This includes
providing training programs, advanced tools, and mentorship from industry experts. This support not only
helps intrapreneurs overcome challenges during the execution of their ideas but also enables them to refine
and implement initiatives more effectively. When intrapreneurs have sufficient resources and backing,
they can focus on creativity without worrying about financial or resource constraints. To maintain and
enhance this support system, organizations should regularly monitor and adjust resources to match the
evolving needs of intrapreneurship projects.

Encourage Long-Term Commitment and Offer Appropriate Rewards

To maintain motivation and commitment from intrapreneurs, organizations need to establish a rewarding
and recognition system that values employee contributions. Rewards should not only be financial but also
include opportunities for career advancement, personal growth, and recognition for their efforts. Creating
an environment where employees feel acknowledged and can grow professionally will lead to stronger
commitment and engagement with the organization. When intrapreneurs feel their contributions are

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valued, they will be more motivated to continue offering innovative ideas, which, in turn, helps the
company develop and grow. To sustain this motivation, organizations should continuously evaluate and
adjust their reward systems to ensure that rewards are distributed fairly and in accordance with each
employee’s contributions.

Align Initiatives with the Organization’s Strategic Goals

A crucial element of intrapreneurship success is ensuring that creative initiatives are closely aligned with
the company’s overall strategic goals. Organizations must ensure that these innovative ideas not only
provide short-term benefits but also contribute to the long-term objectives of the company. Senior
leadership should actively participate in creative projects, providing strategic guidance and ensuring that
these initiatives align with the broader vision of the organization. This helps foster alignment and
engagement between leaders and employees and ensures the sustainability of the initiatives. To maintain
this alignment, organizations should hold regular meetings between intrapreneurs and senior leadership to
ensure that creative projects are continually adjusted and developed in line with the company’s evolving
strategy.

III. Conclusion
In conclusion, this research has successfully provided a comprehensive analysis of the critical role SMEs
play in driving economic growth, job creation, and innovation, supported by statistical data and real-world
examples. It has also highlighted the transformative impact of intrapreneurship in enhancing the
adaptability, efficiency, and competitiveness of both public and private organizations. By exploring these
interconnected themes, the report offers a deeper understanding of how SMEs and intrapreneurial
initiatives contribute to sustainable economic development. Additionally, practical recommendations have
been proposed to help businesses and organizations leverage these insights effectively. These suggestions
aim to enable SMEs to expand their impact while encouraging public and corporate entities to foster
intrapreneurship as a means of achieving long-term success and resilience. Through this research, the
importance of nurturing innovation, empowering individuals, and supporting SMEs has been underscored
as essential strategies for thriving in a rapidly evolving global economic landscape.

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[Accessed 4 December 2024].

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