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Entrepreneurial employees are the ones who challenge the status quo, observe with fresh eyes, connect across silos and experiment with new ideas within their organizations. These behaviors are a key driver of corporate entrepreneurship—the engine that keeps established organizations innovative and competitive. Not surprisingly, many organizations have created programs to encourage employees to act entrepreneurially. But what tangible benefits do entrepreneurial employees receive in return for their efforts?

Two recent complementary studies, led by Alyssa Liang, a visiting assistant professor of organizational behavior at Olin Business School at Washington University in St. Louis, examine how and when entrepreneurial behaviors lead to promotions and higher compensation.

The findings, published in Strategic Entrepreneurship Journal, offer practical insights for upwardly mobile employees, human resources managers and executives seeking to foster entrepreneurial spirit within their organizations.

In the first study of approximately 650 employees at Fortune 500 companies, Liang and co-authors confirmed that the employees who exhibited entrepreneurial behaviors were more likely to start internal ventures within their organizations, such as creating products or initiating more efficient ways of doing work. In fact, a one-unit increase in entrepreneurial behaviors increased the odds of starting a new internal venture by 50%.

Subsequently, entrepreneurial employees who successfully launched internal ventures were significantly more likely to be promoted and, particularly within large organizations, more likely to receive higher compensation.

“One key insight from our research is that simply displaying entrepreneurial behaviors didn’t necessarily lead to better career outcomes, unless it led to something concrete—a new internal venture,” explained Liang.

“Only those who had the commitment, competence and strategic thinking necessary to turn their ideas into actual internal ventures earned more promotions—and bigger paychecks in large companies,” she added.

Notably, the authors found that smaller organizations were more likely to reward entrepreneurial employees with promotions, rather than pay raises, which the authors say could reflect greater financial constraints within these organizations.

In a second study, the authors asked participants with managerial experience to compare similar résumés for an internal promotion. Candidates who had created new internal ventures were perceived to have greater leadership potential and, thus, were more likely to be selected. According to the authors, creating an internal venture inside the organization signals an employee’s leadership potential. This is especially important in larger organizations where managers tend to have less opportunity to observe and work closely with their employees, they said.

“For employees aspiring to advance their career, our findings highlight the importance of transforming entrepreneurial behaviors into tangible outcomes,” Liang said. “Ambitious professionals can strategically use internal venturing as a way to gain visibility, showcase their leadership potential and accelerate career advancement within their companies.”

Interaction of new internal venture creation and organizational size on the number of promotions. Credit: Strategic Entrepreneurship Journal (2025). DOI: 10.1002/sej.70005

Fostering entrepreneurial spirit

In today’s fast-paced “innovate or die” business environment, companies cannot afford to rest on the laurels of their past successes. How can organizations create a supportive ecosystem that encourages innovation?

The first step is to train employees to act entrepreneurially. “Innovation is not a random spark. These behaviors can be developed with the right training and support,” said co-author Markus Baer, vice dean of executive education and a professor of organizational behavior at Olin. He recommends the book “The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators” as a starting point.

Beyond training, organizations should establish systems that empower employees to own their ideas from start to finish, Liang said. She added that companies shouldn’t stop at encouraging idea pitches. They should provide structured pathways for employees to develop, test and implement their ideas.

It’s also important to encourage cross-functional connections through formal workshops, networking events and collaboration platforms to focus on innovation. This is because innovative ideas often emerge at the intersection of functions and disciplines.

Finally, in entrepreneurship-oriented organizations, managers at all levels need to understand the value of entrepreneurial behaviors.

“Managers sometimes perceive entrepreneurial employees as disruptive and difficult,” Liang noted. “HR can play a key role in shifting this perception by helping managers understand the value these employees bring and by fostering a culture where experimentation and even failure are seen as part of the learning process.”

Organizations that succeed in doing so not only normalize constructive feedback and failure but also reinforce entrepreneurial behaviors through promotions, financial rewards and additional professional development opportunities.

More information: Alyssa X. Liang et al, Internal venturing as a signal: How entrepreneurial employees gain career benefits in organizations, Strategic Entrepreneurship Journal (2025). DOI: 10.1002/sej.70005

Citation: Entrepreneurial behavior can fast-track career, research finds (2025, November 10) retrieved 10 November 2025 from https://phys.org/news/2025-11-entrepreneurial-behavior-fast-track-career.html

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